The iShares 7-10 Year Treasury Bond ETF (IEF) is an exchange-traded fund designed to provide investors with exposure to U.S. Treasury bonds maturing between seven and ten years. This ETF offers a balance between yield and interest rate risk, making it a popular choice for those seeking intermediate-term bond exposure.

Key Features:

  • Investment Objective: IEF aims to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities between seven and ten years.

  • Expense Ratio: The fund has an expense ratio of 0.15%, which is relatively low, allowing investors to retain more of their returns.

  • Dividend Yield: IEF offers a dividend yield of approximately 3.65%, with an annual payout of $3.41 per share. Dividends are distributed monthly, providing a regular income stream for investors.

  • Fund Holdings: The ETF holds a diversified portfolio of U.S. Treasury bonds within the specified maturity range, ensuring exposure to intermediate-term government debt.

Performance Overview:

As of February 7, 2025, IEF’s net asset value (NAV) was $93.11, with a 52-week range between $91.15 and $99.11. The fund’s performance is closely tied to movements in U.S. Treasury yields, which are influenced by factors such as Federal Reserve policies, inflation expectations, and overall economic conditions.

Investment Considerations:

  • Interest Rate Sensitivity: Given its focus on intermediate-term bonds, IEF is sensitive to interest rate changes. An increase in interest rates may lead to a decline in bond prices and, consequently, the ETF’s value.

  • Credit Risk: Since the fund invests exclusively in U.S. Treasury securities, credit risk is minimal, as these bonds are backed by the full faith and credit of the U.S. government.

  • Liquidity: IEF boasts high liquidity, with substantial average daily trading volumes, allowing investors to enter and exit positions with ease.

Conclusion:

The iShares 7-10 Year Treasury Bond ETF (IEF) offers investors targeted exposure to intermediate-term U.S. Treasury bonds, balancing yield and interest rate risk. Its low expense ratio, regular monthly dividends, and focus on government-backed securities make it a compelling option for those seeking a stable and predictable income stream within the fixed-income segment of their portfolio.