UTRE Profile
The RBB Fund, Inc. - US Treasury 3 Year Note ETF is designed to offer investors direct exposure to the U.S. Treasury's intermediate-term debt securities. The fund seeks to achieve its investment objective by allocating at least 80% of its net assets, including any borrowings for investment purposes, to the component securities of its underlying index. This index, known as the ICE BofA Current 3-Year US Treasury Index, consists of the most recently issued 3-year U.S. Treasury note, providing investors with focused access to this specific segment of the bond market.
The ICE BofA Current 3-Year US Treasury Index that the fund tracks is unique in its simplicity, as it is composed of only one security: the most recent 3-year U.S. Treasury note. This design allows the ETF to provide precise exposure to this particular maturity, making it an attractive option for investors seeking a balance between yield and interest rate risk. The 3-year note is often considered a middle ground in the Treasury market, offering higher yields than short-term securities while carrying less interest rate risk compared to longer-dated bonds.
Investors interested in the RBB Fund, Inc. - US Treasury 3 Year Note ETF may use it as a strategic tool within a diversified portfolio, particularly if they are looking for a lower-risk investment that still provides income. The 3-year note is often favored by those who expect stable or rising interest rates, as it offers a relatively short duration while still locking in a fixed yield for a three-year period. The funds concentrated exposure to this single maturity also allows investors to easily manage duration and interest rate sensitivity within their broader fixed-income allocations.
Managed by The RBB Fund, Inc., this ETF provides a straightforward and transparent way to invest in U.S. government debt, specifically targeting the 3-year maturity. The fund's focus on a single security within the Treasury market simplifies the investment process, offering a clear and consistent exposure to the latest 3-year note. This makes the ETF a valuable addition for conservative investors seeking safety, liquidity, and modest income, backed by the creditworthiness of the U.S. government. By investing in this ETF, investors gain access to a reliable income stream that aligns with the intermediate-term interest rate environment.
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