Cushion Against Negative Surprises With Treasury ETFs

While the much-ballyhooed recession hasn’t yet reared its ugly head, it could still pop up and wreak havoc. After all, we’re living in…let’s call them “interesting” times (to put it mildly). So, it’s still a good idea to provide portfolios with a cushion to soften any negative surprises. And Treasury ETFs may be that buffer against any sudden economic downturns.

Most Treasuries are yielding around 5%. Plus, interesting times aside, economic growth prospects are stable. And let’s not forget that, despite the Fed’s equivocating, the U.S. central bank appears to be easing up on its rate hikes.

See more: “Use U.S. Treasury ETFs for Tax-Loss Harvesting Opportunities

Choose Your Place Along the Treasury Curve With BondBloxx ETFs

BondBloxx offers a suite of eight duration-specific U.S. Treasury ETFs that range in duration from six months to 20 years. They target duration-constrained subsets of U.S. Treasuries with more than $300 billion outstanding. They’re designed to track indexes that achieve target durations using U.S. Treasury securities instead of specific maturities or maturity ranges.

BondBloxx was launched in October 2021 to provide precision ETF exposure for fixed income investors. It launched its first ETFs In February 2022. Now, the issuer 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.”

“They offer advisors and investors the opportunity to target duration with risk-off government bonds,” he added.

At a panel on VettaFi’s Fixed Income Symposium, 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.