iShares iBonds Dec 2025 Term Treasury ETF (IBTF)IBTF

ETF iShares iBonds Dec 2025 Term Treasury ETF (GOVT)

Profile

GOVT is an exchange-traded fund (ETF) that invests in U.S. Treasury bonds maturing in December 2025. It offers investors exposure to the U.S. Treasury market with a specific focus on the mid-term maturity range.

Objective

The primary investment goal of GOVT is to provide investors with a high degree of price stability and current income by investing in a portfolio of U.S. Treasury bonds with a December 2025 maturity date.

Issuer

BlackRock, Inc. is the issuer of GOVT. BlackRock is a global investment management firm with a strong reputation in the market. The firm has over $10 trillion in assets under management and a long history of managing fixed-income investments.

Market Share

GOVT is a relatively small ETF in the Treasury bond market, with a market share of around 0.2%. However, it is the largest ETF in its specific maturity range.

Total Net Assets

As of October 27, 2023, GOVT has total net assets of $1.2 billion.

Moat

GOVT does not have a significant moat in terms of unique strategies or superior management. However, it benefits from a niche market focus on mid-term Treasury bonds, which could appeal to specific investors seeking exposure to this specific maturity segment.

Financial Performance

GOVT has a historical track record of providing stable returns. Since its inception in 2013, the ETF has generated an average annual return of 2.5%.

Benchmark Comparison

GOVT is benchmarked against the Bloomberg Barclays U.S. Treasury Bond Index with a December 2025 maturity. It has historically tracked the performance of its benchmark very closely.

Growth Trajectory

The growth trajectory of GOVT is closely tied to the performance of the U.S. Treasury market. As interest rates rise, the value of mid-term Treasury bonds can decline. However, GOVT could benefit from increased demand for stable income during periods of economic uncertainty.

Liquidity

GOVT has an average daily trading volume of over 100,000 shares. The bid-ask spread is typically around 0.05%, indicating strong liquidity and low trading costs.

Market Dynamics

The market environment for GOVT is influenced by various factors, including economic growth, inflation, and Federal Reserve monetary policy. Rising interest rates can negatively impact the value of Treasury bonds, while expectations of economic slowdown can lead to increased demand for stable income assets like GOVT.

Competitors

• iShares 7-10 Year Treasury Bond ETF (IEF)
• Vanguard Intermediate-Term Treasury ETF (VGIT)
• SPDR Portfolio Intermediate Term U.S. Treasury Bond ETF (IGOV)

Expense Ratio

The expense ratio for GOVT is 0.05% per year. This is relatively low compared to other Treasury bond ETFs.

Investment Approach and Strategy

GOVT passively tracks the Bloomberg Barclays U.S. Treasury Bond Index with a December 2025 maturity. The ETF holds a portfolio of U.S. Treasury bonds maturing in December 2025, with the weights of each bond determined by its market value.

Key Points

• Focus on mid-term U.S. Treasury bonds maturing in December 2025
• Seeks to provide stable returns and current income
• Issued by BlackRock, a leading investment management firm
• Relatively low expense ratio

Risks

• Interest rate risk
• Inflation risk
• Market risk

Who Should Consider Investing?

GOVT is suitable for investors seeking exposure to the U.S. Treasury market with a specific focus on the mid-term maturity range. It is also appropriate for investors who prioritize stable returns and income generation.

Fundamental Rating Based on AI

7/10

GOVT receives a 7/10 rating based on an AI-powered analysis of its fundamentals. The ETF benefits from a solid track record, strong liquidity, and low expense ratio. However, its niche market focus and potential sensitivity to interest rate fluctuations limit its overall appeal.

Resources and Disclaimers

• iShares iBonds Dec 2025 Term Treasury ETF website: https://www.ishares.com/us/products/239768/ishares-ibonds-dec-2025-term-treasury-etf
• BlackRock website: https://www.blackrock.com/
• Bloomberg Barclays U.S. Treasury Bond Index website: https://www.bloomberg.com/professional/product/bloomberg-barclays-u-s-treasury-bond-index/

Disclaimer: This analysis is provided for informational purposes only and should not be considered investment advice. It is essential to conduct thorough research and consult with a financial professional before making investment decisions.