Capital ICE 15+ Year US Utility ETF (00755B)

Overview

Capital ICE 15+ Year US Utility ETF offers a specialized investment opportunity in the U.S. utilities sector, emphasizing bonds with over 15 years to maturity. It precisely targets the investment-grade fixed income securities from substantial U.S. utility companies, promoting a segment acknowledged for its stability and predictable cash flows. The focus is on utility entities crucial for national infrastructure, such as those providing electricity, water, and natural gas. This approach is designed to benefit from the long-duration, investment-grade credit profiles typical of utility issuers, aligning with strategies to mitigate duration risk while seeking income in environments sensitive to interest rates. The ETF reflects growing investor interest in sector-specific, long-term income solutions within the fixed income arena, aiming at a balance between portfolio income and the management of duration risk.

Products and Services

• Investment in U.S. Utility Sector Bonds

This exchange-traded fund (ETF) primarily invests in investment-grade fixed income securities issued by major U.S. utility companies. The specific focus on bonds with maturities of 15 years or longer offers investors targeted exposure to a critical segment of the fixed income market. This segment is characterized by its stability and the generation of predictable cash flows, crucial for investors seeking reliable income sources from their investment portfolios.

• Access to High-Credit-Quality Utility Bonds

By emphasizing investment-grade securities, the Capital ICE 15+ Year US Utility ETF provides access to bonds that are regarded as having lower default risks. These bonds are issued by utility companies that play an essential role in maintaining national infrastructure, thereby offering a more secure investment in the fixed income space. The focus on high-quality credit profiles aligns with the fund’s strategy to capture stable and predictable returns, particularly attractive in volatile market conditions.

• Portfolio Income Balance with Duration Risk Management

The ETF's strategy is crafted to balance portfolio income while carefully managing duration risk, an essential factor for fixed income investors, especially in fluctuating interest rate environments. By concentrating on the utility sector and extending the maturity profile of its holdings, the ETF presents a tool for investors aiming to mitigate the impact of interest rate changes on their portfolios. This strategic focus facilitates a more balanced approach to income generation and risk management, making it a compelling option for investors focused on long-term, stable investment outcomes.