BondBloxx Investment Management announced the launch of a suite of eight duration-specific U.S. Treasury ETFs, which begin trading today on NYSE Arca. These ETFs seek to offer investors a more precise, lower-cost way to get exposure to U.S. Treasury Securities.
The funds track a series of indexes developed by Bloomberg Index Services that include duration-constrained subsets of U.S. Treasury bonds with more than $300 billion outstanding. They’re the first ETFs designed to track indexes that achieve target durations using U.S. Treasury securities, instead of specific maturities or maturity ranges.
“In today’s rapidly changing interest rate environment, key priorities for portfolio managers and investors are earning higher yields on strategic cash positions, precisely managing duration risk, and having effective collateral tools,” said BondBloxx client portfolio manager JoAnne Bianco in a news release. “BondBloxx Target Duration U.S. Treasury ETFs may help investors in all these areas, with the potential benefits of being lower cost, transparent, liquid and tax efficient.”
The new products listing today, with their tickers and expense ratios, are:
- The BondBloxx Bloomberg Six Month Target Duration US Treasury ETF (NYSE Arca: XHLF); expense ratio: 0.03%
- The BondBloxx Bloomberg One Year Target Duration US Treasury ETF (NYSE Arca: XONE); expense ratio: 0.03%
- The BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (NYSE Arca: XTWO); expense ratio: 0.05%
- The BondBloxx Bloomberg Three Year Target Duration US Treasury ETF (NYSE Arca: XTRE); expense ratio: 0.05%
- The BondBloxx Bloomberg Five Year Target Duration US Treasury ETF (NYSE Arca: XFIV); expense ratio: 0.05%
- The BondBloxx Bloomberg Seven Year Target Duration US Treasury ETF (NYSE Arca: XSVN); expense ratio: 0.05%
- The BondBloxx Bloomberg Ten Year Target Duration US Treasury ETF (NYSE Arca: XTEN); expense ratio: 0.075%
- The BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF (NYSE Arca: XTWY); expense ratio: 0.125%.
The new ETFs add to the existing 11 BondBloxx products that have been launched since February 2022, including seven industry sector-specific high yield bond ETFs, three ratings-specific high yield bond ETFs, and one short-duration emerging market bond ETF.
“At BondBloxx, we’re committed to building innovative fixed income tools for the markets of today and tomorrow,” added BondBloxx co-founder Tony Kelly. “These new ETFs, which we believe finally make it possible for investors to truly manage their duration exposure with precision, are an exciting and potentially valuable addition to that investor toolkit.”
BondBloxx was launched in October 2021 to develop precision fixed income ETFs. In a landscape where less than one quarter of the ETF products available in the U.S. provide fixed income exposure, the company aims to provide better tools for investors to manage their fixed income portfolios.
“BondBloxx has continued to launch innovative products since its founding and has expanded the ETF universe with targeted products where there is white space,” said Todd Rosenbluth, head of research at VettaFi. “Their broad range of fixed income funds makes them a firm to watch as the asset category grows.”
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