The PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund is an exchange-traded fund (ETF) that aims to capture the returns of The BofA Merrill Lynch Long US Treasury Principal STRIPS IndexSM. By tracking the index, the fund aims to achieve, before fees and expenses, the yield and duration exposure inherent in this index. It has a very low expense ratio of 0.15%.
The First Trust Long Duration Opportunities ETF’s (the “Fund”) primary investment objective is to generate current income with a focus on preservation of capital. Under normal market conditions, the Fund will invest at least 80% of its net assets (including investment borrowings) in a portfolio of investment-grade debt securities issued or guaranteed by the U.S. government, its agencies or government-sponsored entities, including publicly-issued U.S. Treasury securities and mortgage-related securities. The Fund may also invest in exchange-traded funds (“ETFs”) that principally invest in such securities. The Fund may purchase mortgage-related securities in “to-be-announced” transactions (“TBA Transactions”), including mortgage dollar rolls. Its expense ratio is on the loftier side at 0.65%.
The Vanguard Ext Duration Treasury ETF (EDV) seeks to track the performance of the Bloomberg Barclays U.S. Treasury STRIPS 20–30 Year Equal Par Bond Index. It is a passively managed fund that uses index sampling. The ETF offers diversified exposure to the long-term Treasury STRIPS market. The fund provides high current income with high credit quality. The expense ratio is very low at 0.07%.
The Vanguard Long-Term Treasury ETF (VGLT) seeks to provide a high and sustainable level of current income. The ETF invests primarily in government bonds. The fund maintains a dollar-weighted average maturity of 10 to 25 years. The expense ratio is very low at 0.07%, like its sibling.
The iShares 20+ Year Treasury Bond ETF seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities greater than twenty years. The fund offers exposure to long-term U.S. Treasury bonds. Investors can get targeted access to a specific segment of the U.S. Treasury market, and use the ETF to customize their exposure to Treasuries. The expense ratio is low at 0.15%.
The SPDR® Portfolio Long Term Treasury ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Bloomberg Barclays Long U.S. Treasury Index (the “Index”). It is one of the low cost core SPDR Portfolio ETFs, a suite of portfolio building blocks designed to provide broad, diversified exposure to core asset classes. The fund seeks to offer precise, comprehensive exposure to US Treasuries with remaining maturities of 10 or more years. It has an expense ratio of only 0.06%.
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