Andrii Dodonov
iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) does exactly what its name indicates. It provides investors a one-stop shop for U.S. Treasury Bonds maturing in 3 to 7 years. It targets the price and performance of the ICE U.S. Treasury 3-7 Year Bond Index and is passive is its approach. This means that it utilizes the “indexing approach“, in its pursuit of investment results. The fund does not attempt to outperform its benchmark and make changes to the portfolio in response to the prevailing market conditions. The fund does have expenses unlike the index, so the ETF’s mandate is to have a comparable performance after taking its fees into account. The fees in question for IEI are 0.15%.
IEI
The fund has lagged the index in all time frames shown below, yes. However, if one considers the fees, it has done as well or at times better than what one would anticipate with the fee handicap.
IEI
The representative sampling…
