XTRE Profile
The BondBloxx Bloomberg Three Year Target Duration US Treasury ETF is designed to offer investors a strategic approach to managing interest rate risk while providing exposure to U.S. Treasury securities. The fund aims to maintain an average portfolio duration of approximately three years, aligning with its objective to invest predominantly in short- to intermediate-term government bonds. Under normal market conditions, the fund will allocate at least 80% of its net assets, plus any borrowings for investment purposes, to U.S. Treasury securities that collectively meet this duration target.
The ETF’s investment strategy involves holding U.S. Treasury securities with maturities and durations that aggregate to an average of around three years. This approach allows the fund to mitigate interest rate risk while offering investors the relative safety and credit quality associated with U.S. government debt. The portfolio may also include derivative instruments to manage duration and interest rate exposure effectively, in line with the fund's target duration.
By focusing on U.S. Treasury securities with a target duration of three years, the fund aims to provide a balance between yield and interest rate sensitivity. This strategy is particularly suited for investors seeking a conservative investment approach that offers predictable returns and lower volatility compared to longer-duration bonds. The fund's emphasis on short- to intermediate-term government debt aligns with a cautious stance on interest rate movements and economic uncertainties.
As a non-diversified fund, it concentrates its investments in U.S. Treasury securities, reflecting a targeted strategy to achieve specific duration and risk management objectives. This focused approach allows the fund to serve as a tool for investors looking to stabilize their fixed-income portfolios with securities that are backed by the full faith and credit of the U.S. government while adhering to a defined duration target.
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