Yuanta U.S. Treasury 7-10 Year Bond ETF (00697B)

Overview

The Yuanta U.S. Treasury 7-10 Year Bond ETF is a specialized investment fund designed to appeal to investors looking for a moderate to long-term investment horizon within the safety net of U.S. government bonds. This exchange-traded fund aims to mirror the performance of the ICE U.S. Treasury 7-10 Year Index, thereby offering investors an effective way to gain exposure to intermediate-term U.S. Treasury securities. By focusing primarily on U.S. Treasury notes with maturities between 7 to 10 years, the ETF provides a blend of risk and return that tends to attract those seeking stability and consistent income through regular dividends. Its strategic emphasis on investment-grade, highly liquid debt instruments underscores its utility as a pivotal tool for both capital preservation and the balancing of portfolio risks, particularly against more volatile equity investments. With the bulk of its assets invested in the top ten U.S. Treasury note holdings, the fund stands as a robust conduit for investors aiming to anchor their portfolios with government-backed securities, minimizing exposure to the uncertainties of riskier asset classes.

Products and Services

• Targeted Exposure to Intermediate-Term U.S. Treasury Securities

  This core service of the Yuanta U.S. Treasury 7-10 Year Bond ETF involves providing investors with direct access to a range of intermediate-term U.S. Treasury securities, specifically those with maturities of 7 to 10 years. This offering is particularly designed for investors seeking a balanced approach to income and growth, with a focus on capital preservation.

• Tracking the ICE U.S. Treasury 7-10 Year Index

  The ETF sets out to closely track the performance of the ICE U.S. Treasury 7-10 Year Index. This index is a benchmark that reflects the investment returns of U.S. Treasury notes with maturities of 7 to 10 years, offering investors a transparent and efficient way to gauge the fund's performance relative to a well-recognized standard in the fixed income market.

• Physical Ownership of U.S. Government Bonds

  Investors in the Yuanta U.S. Treasury 7-10 Year Bond ETF hold physical ownership of U.S. government bonds through their investment in the fund. This feature is integral to the fund's appeal, as it enables direct investment in U.S. Treasury notes, which are backed by the full faith and credit of the U.S. government and are considered among the safest investment assets worldwide.

• Portfolio Stability and Reliable Income

  By virtue of its investment strategy, the ETF provides a cornerstone for those in pursuit of portfolio stability and predictable income. The focus on U.S. Treasury notes—known for their liquidity and investment-grade quality—positions the fund as a valuable option for investors looking to generate regular dividend distributions without incurring significant risk.

• Risk Management and Diversification Strategies

  The fund serves an essential role in assisting investors with risk management and diversification of their investment portfolios. Especially for those aiming to mitigate equity risk or preserve capital, the Yuanta U.S. Treasury 7-10 Year Bond ETF offers a prudent solution, harnessing the security of government-backed credit to safeguard against the volatility inherent in riskier sectors.