GOVZ

📎 Investment Objective

The iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) seeks to track the investment results of an index composed of U.S. Treasury STRIPS with remaining maturities greater than 25 years.

✨ Key Features

• Focuses on long-dated U.S. Treasury STRIPS with maturities greater than 25 years
• Provides exposure to the long end of the Treasury yield curve
• Designed to offer a pure play on long-term U.S. government bond prices
• Potential for capital appreciation if long-term interest rates decline

⚠️ Primary Risks

• Interest rate risk: The fund's value may decline as interest rates rise
• Reinvestment risk: Coupon payments and principal repayments may need to be reinvested at lower yields
• Liquidity risk: The market for long-dated Treasury STRIPS may be less liquid than the broader Treasury market
• Credit risk: Exposure to U.S. government debt, which is generally considered low-risk but not risk-free

👤 Best For

This ETF may be suitable for investors seeking exposure to long-dated U.S. Treasury bonds as part of a diversified fixed-income portfolio. It may be particularly appealing to investors with a long-term investment horizon who are looking to hedge against potential declines in long-term interest rates.