Treasury yields are currently experiencing a 15-year high thanks to the Fed’s aggressive rate hikes. In just two years, the two-year Treasury yield surged from near zero percent to more than 5% by Q3. Meanwhile, the the 10-year Treasury yield more than doubled to 4.6% during this time.
So, given the recent market fluctuations and ongoing interest rate volatility, fixed income investors may want to consider diverse investment strategies across the yield curve. That’s where fixed income investment manager BondBloxx can help.
See more: “Use U.S. Treasury ETFs for Tax-Loss Harvesting Opportunities”
Various Points to Enter the Curve
BondBloxx offers eight duration-specific U.S. Treasury ETFs that target duration-constrained subsets of U.S. Treasuries with more than $300 billion outstanding. They range in duration from six months to 20 years. The funds are designed to track indexes that achieve target durations using U.S. Treasury securities instead of specific maturities or maturity ranges.
Investors seeking a short-term investment strategy to generate higher income, manage cash positions, and maintain liquidity, should consider the BondBloxx Bloomberg Six Month Target Duration US Treasury ETF (XHLF) the BondBloxx Bloomberg One Year Target Duration US Treasury ETF (XONE), or the BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO).
Meanwhile, investors expecting the Fed to be ending, or nearing the end, of its rate hiking cycle may want to go slightly longer on the duration curve, with the BondBloxx Bloomberg Three Year Target Duration US Treasury ETF (XTRE), the BondBloxx Bloomberg Five Year Target Duration US Treasury ETF (XFIV), or the BondBloxx Bloomberg Seven Year Target Duration US Treasury ETF (XSVN).
And for those looking to go further out on the yield curve to manage or expect the Fed to pivot, there’s the BondBloxx Bloomberg Ten Year Target Duration US Treasury ETF (XTEN) and the BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF (XTWY).
Providing Precision Fixed Income Exposure
BondBloxx was launched in October 2021 to provide precision ETF exposure for fixed income investors. After launching its first ETFs in February 2022, the issuer now manages more than $2 billion in assets across 20 (soon to be 21) U.S.-listed ETFs.
VettaFi’s Head of Research Todd Rosenbluth called BondBloxx “one of the more innovative providers of fixed income ETFs.”
BondBloxx Co-Founder Joanna Gallegos said that U.S. Treasuries have been a great alternative to cash. They’re also a great way to capture as much yield as possible.
“It’s hard to walk away from a 5% risk-free yield,” she added.
For more news, information, and analysis, visit the US Treasuries & TIPS Fixed Income Channel.