2024-05-10 10:00:00 ET
Summary
- iShares 3-7 Year Treasury Bond ETF is a popular investment option for those seeking exposure to US government bonds.
- The fund offers a relatively low expense ratio and allows easy investing into US Treasuries of medium duration.
- The US Government is now seen as a worse creditor than most Dow Jones Index companies.
- We go over why this fund might still be ok for you if you want Treasury holdings.
iShares 3-7 Year Treasury Bond ETF ( IEI ) does exactly what its name indicates. It provides investors a one-stop shop for U.S. Treasury Bonds maturing in 3 to 7 years. It targets the price and performance of the ICE U.S. Treasury 3-7 Year Bond Index and is passive is its approach. This means that it utilizes the " indexing approach ", in its pursuit of investment results. The fund does not attempt to outperform its benchmark and make changes to the portfolio in response to the prevailing market conditions. The fund does have expenses unlike the index, so the ETF's mandate is to have a comparable performance after taking its fees into account. The fees in question for IEI are 0.15%....
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For further details see:
IEI: When Apple And Microsoft Have Lower CDS Than US Treasuries