UTWY Profile
The RBB Fund, Inc. - US Treasury 20 Year Bond ETF is designed to provide investors with exposure to the U.S. Treasury market, specifically targeting long-term securities. The fund's primary investment objective is to replicate the performance of the ICE BofA Current 20-Year US Treasury Index. This index is a one-security index composed of the most recently issued 20-year U.S. Treasury note, which serves as a benchmark for the fund's holdings. By investing in this single security, the fund aims to mirror the returns of the long-term segment of the U.S. Treasury yield curve.
Under typical market conditions, the adviser of the fund seeks to achieve its investment goal by allocating at least 80% of the funds net assets, including any borrowings made for investment purposes, into the component securities of the underlying index. This focused investment strategy allows the fund to maintain a direct correlation with the performance of the 20-year Treasury note, providing investors with a stable income stream and lower credit risk, given that U.S. Treasury securities are backed by the full faith and credit of the U.S. government.
The RBB Fund, Inc. - US Treasury 20 Year Bond ETF offers a strategic investment vehicle for those seeking to hedge against interest rate fluctuations and gain exposure to long-duration U.S. government bonds. The fund is particularly suitable for investors with a long-term investment horizon who are looking to capitalize on the interest rate environment and benefit from the relative safety of U.S. Treasury securities. By investing in the fund, investors can gain access to a portfolio that closely tracks the performance of the benchmark index, ensuring alignment with their investment objectives.
The fund's approach emphasizes maintaining a high level of liquidity and transparency, with a focus on efficient tracking of the underlying index. This is achieved through a disciplined investment strategy that prioritizes the acquisition and retention of the specific U.S. Treasury note that forms the basis of the index. The funds management practices are geared towards minimizing tracking error and ensuring that investors receive returns that closely match the performance of the 20-year Treasury note.
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