XTWY Profile
The Bondbloxx Bloomberg Twenty Year Target Duration US Treasury ETF is designed to track the performance of U.S. Treasury securities with an average duration of approximately 20 years. The ETF aims to mirror the Bloomberg US Treasury Index, which includes a selection of U.S. Treasury notes and bonds as well as principal-only U.S. Treasury STRIPS. These securities are selected for their long-term duration, providing a measure of interest rate sensitivity suitable for investors seeking extended duration exposure.
Under normal market conditions, the fund commits at least 80% of its net assets, including any borrowings for investment purposes, to a diversified portfolio of U.S. Treasury securities that align with its target duration of 20 years. The investment strategy involves direct purchases of Treasury securities or indirect investments through derivatives. This approach enables the fund to achieve its duration target while managing interest rate risk and maintaining a focus on U.S. government-backed securities.
The ETF is structured to provide investors with exposure to long-term U.S. Treasury securities, which are typically used as a safe haven in various market conditions. The fund’s holdings are carefully selected to match its duration target, ensuring that the portfolio’s average duration remains close to 20 years. This duration focus is designed to benefit from potential changes in interest rates, offering investors an opportunity to capitalize on the unique characteristics of long-term Treasury securities.
As a non-diversified fund, the Bondbloxx Bloomberg Twenty Year Target Duration US Treasury ETF concentrates its investments exclusively in U.S. Treasury securities with long durations. This specialized investment strategy emphasizes the fund’s commitment to maintaining a precise duration profile while managing interest rate exposure. The ETF’s non-diversified nature reflects its targeted approach to investing in government securities, aligning with the specific investment goals of long-duration bond investors.
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