Description

The fund provides exposure to an index of Treasury bonds issued by the US government. Eligible securities must be denominated in USD, have an effective time to maturity from 7 to 10 years, and have a par amount outstanding of not less than 250 million USD. Constituents are selected by a committee, are market-value weighted, and are rebalanced on a monthly basis. The fund is designed for investors with a low risk appetite who are seeking low cost exposure to a diversified portfolio of Treasurys in the US. It is to note that investments in Treasurys are considered to have low credit or default risk which is perfect for low risk appetite investors, however these investments also tend to offer lower yields relative to other bonds.