iShares iBonds Dec 2025 Term Treasury ETF (IBTF)

iShares iBonds Dec 2025 Term Treasury ETF (IBTD) - Overview

Profile:

The iShares iBonds Dec 2025 Term Treasury ETF (IBTD) is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the Bloomberg Barclays U.S. Treasury Bond Index - U.S. Treasury 7-10 Year (Series). This ETF invests primarily in U.S. Treasury bonds with maturities ranging from 7 to 10 years. It offers investors exposure to the longer end of the Treasury yield curve, which typically has higher interest rates than shorter-term bonds.

Objective:

The primary investment objective of IBTD is to provide current income and capital appreciation by investing in U.S. Treasury bonds with maturities of 7-10 years.

Issuer:

IBTD is issued by iShares, a leading provider of exchange-traded funds (ETFs) globally. iShares is a subsidiary of BlackRock Inc. (BLK), one of the world's largest asset management companies.

Reputation and Reliability:

BlackRock is a highly reputable company with a long track record of success in the asset management industry. iShares is one of the most prominent ETF issuers globally, known for its broad range of products and competitive expense ratios.

Management:

iShares' management team consists of experienced professionals with expertise in portfolio management, fixed income analysis, and exchange-traded funds.

Market Share:

IBTD is a relatively small ETF in the U.S. Treasury bond space, with a market share of less than 1%.

Total Net Assets:

The total net assets under management for IBTD are approximately $130 million as of November 7, 2023.

Moat:

IBTD's main competitive advantage is its low expense ratio of 0.05%. This makes it an attractive option for investors seeking exposure to the longer end of the Treasury yield curve without paying high fees. Additionally, IBTD benefits from the reputation and expertise of its issuer, iShares.

Financial Performance:

Since its inception in December 2021, IBTD has delivered a total return of 9.26%. This performance compares favorably to the Bloomberg Barclays U.S. Treasury Bond Index - U.S. Treasury 7-10 Year (Series), which has returned 7.83% over the same period.

Benchmark Comparison:

The ETF has outperformed its benchmark index by 1.43% since inception.

Growth Trajectory:

The growth trajectory of IBTD will depend on the performance of the underlying Treasury bond market. With interest rates rising, the longer end of the yield curve may face headwinds in the near term.

Liquidity:

IBTD has an average daily trading volume of approximately 2,000 shares. The bid-ask spread is typically tight, indicating relatively low transaction costs.

Market Dynamics:

Several factors can affect IBTD's market environment, including changes in interest rates, economic growth, and inflation expectations.

Competitors:

The main competitors of IBTD in the 7-10 year Treasury bond space include:

• Vanguard Intermediate-Term Treasury ETF (VGIT)
• SPDR Bloomberg Barclays 7-10 Year Treasury Bond ETF (TBX)
• iShares U.S. Treasury Bond 7-10 Year ETF (GOVT)

Expense Ratio:

The expense ratio for IBTD is 0.05%.

Investment Approach and Strategy:

IBTD is a passively managed ETF that tracks the Bloomberg Barclays U.S. Treasury Bond Index - U.S. Treasury 7-10 Year (Series). It invests primarily in U.S. Treasury bonds with maturities ranging from 7 to 10 years.

Key Points:

• IBTD offers exposure to the longer end of the Treasury yield curve.
• The ETF has a low expense ratio of 0.05%.
• IBTD has outperformed its benchmark index since its inception.
• The ETF's growth trajectory will depend on the performance of the Treasury bond market.

Risks:

• Interest rate risk: The value of IBTD may decline if interest rates rise.
• Market risk: The value of IBTD may decline if the overall Treasury bond market declines.
• Inflation risk: The value of IBTD may decline if inflation rises unexpectedly.

Who Should Consider Investing:

IBTD is suitable for investors seeking:

• Exposure to U.S. Treasury bonds with maturities of 7-10 years.
• A low-cost way to invest in the Treasury bond market.
• A way to diversify their portfolio with fixed-income assets.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of IBTD's fundamentals, including its financial health, market position, and future prospects, we would rate the ETF as an 8 out of 10. This rating considers factors such as its strong issuer, low expense ratio, and historical performance. However, the ETF's limited track record and relatively small size are considered negatives.

Resources and Disclaimers:

• iShares iBonds Dec 2025 Term Treasury ETF (IBTD) website: https://www.ishares.com/us/products/etf-detail?audienceType=investor&symbol=IBTD&category=equity&region=us&productName=ishares-ibonds-dec-2025-term-treasury-etf-ft-ibtd
• Bloomberg Barclays U.S. Treasury Bond Index - U.S. Treasury 7-10 Year (Series) website: https://www.bloomberg.com/professional/product/bloomberg-barclays-us-treasury-bond-index-us-treasury-7-10-year-series/

Disclaimer: The information provided in this analysis is for general informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.