According to BondBloxx Co-Founder Joanna Gallegos, U.S. Treasuries have been a great alternative to cash. She also said they’re a great way to capture as much yield as possible. And with short-term Treasuries continuing to yield more than 5%, investors may want to add these virtually risk-free assets to their portfolios.
“It’s hard to walk away from a 5% risk-free yield,” Gallegos added.
See more: “Use U.S. Treasury ETFs for Tax-Loss Harvesting Opportunities”
Keeping It Short and Sweet
BondBloxx offers a suite of eight duration-specific U.S. Treasury ETFs that 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.
Among this suite are two funds that focus on the shorter end of the duration curve: the BondBloxx Bloomberg Six Month Target Duration US Treasury ETF (XHLF) and the BondBloxx Bloomberg One Year Target Duration US Treasury ETF (XONE). Both funds charge only 3 basis points.
BondBloxx’s Treasury ETFs range in duration from six months to 20 years.
Managing Duration Exposure With Precision
When BondBloxx launched these ETFs last September, Co-Founder Tony Kelly said they let investors “manage their duration exposure with precision.”
“At BondBloxx, we’re committed to building innovative fixed income tools for the markets of today and tomorrow,” he noted. “These new ETFs… are an exciting and potentially valuable addition to that investor toolkit.”
BondBloxx provides 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. Its rapidly growing AUM has been largely due to demand for its Treasury bond ETFs
VettaFi’s Head of Research Todd Rosenbluth said BondBloxx offers “investors the opportunity to target duration with risk-off government bonds.”
For more news, information, and analysis, visit the US Treasuries & TIPS Fixed Income Channel.