XSVN Profile
The BondBloxx Bloomberg Seven Year Target Duration US Treasury ETF is designed to provide investors with exposure to U.S. Treasury securities with a targeted average duration of approximately seven years. The fund aims to achieve its investment objective by maintaining a portfolio of Treasury securities that collectively have an average duration close to seven years. This duration targeting strategy helps to manage interest rate risk and align the fund's performance with market conditions for bonds of this duration.
Under normal market conditions, the fund will invest at least 80% of its net assets, including any borrowings for investment purposes, in U.S. Treasury securities or related financial instruments. This includes direct investments in Treasury bonds or indirect exposure through derivatives. By focusing on U.S. Treasury securities, the fund aims to offer investors a stable and low-risk investment option that is highly liquid and backed by the U.S. government.
The portfolio management approach of the fund involves adjusting the holdings to maintain the average duration target. This ensures that the fund’s sensitivity to interest rate changes is consistent with its investment strategy. The fund’s objective is to provide a duration-specific investment solution for those seeking exposure to U.S. Treasuries while targeting a specific maturity profile to match their investment horizon and risk tolerance.
As a non-diversified fund, it concentrates its investments primarily in U.S. Treasury securities, focusing on achieving a targeted duration rather than spreading investments across various asset classes. This concentrated approach allows for precise duration management and potentially more predictable performance in relation to interest rate movements, making it suitable for investors seeking a focused and duration-specific Treasury investment.
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