Exchange-traded fund (ETF) investing in U.S. Treasury bonds maturing in December 2021.
The iShares Trust - iShares iBonds Dec 2021 Term Treasury ETF aims to replicate the performance of the ICE 2021 Maturity US Treasury Index, which comprises U.S. Treasury bonds set to mature in 2021. The fund typically allocates at least 90% of its assets to the constituent securities of the underlying index, with exceptions during the final months of its operation. This strategy allows investors to gain exposure to U.S. Treasury securities that are publicly issued and have maturity dates falling between January 1, 2021, and December 16, 2021. The ETF operates as a non-diversified investment vehicle.
In practical terms, the fund provides investors with a focused approach to investing in short-term U.S. Treasury bonds that are nearing maturity within the specified time frame. By adhering closely to the composition of the underlying index, the ETF aims to mirror the performance of the selected Treasury bonds, offering a targeted investment option for those seeking exposure to this segment of the fixed-income market.
Managed within the iShares Trust framework, the iShares iBonds Dec 2021 Term Treasury ETF is structured to provide efficient access to a specific maturity segment of the Treasury bond market. This approach caters to investors looking to manage interest rate risk and potentially capitalize on the yield characteristics associated with short-term U.S. government debt securities.