iShares Core U.S. Treasury Bond ETF (IBIT) is an exchange-traded fund (ETF) that tracks the efficiency of the Bloomberg US Treasury Bond Index. The fund invests in a broad vary of U.S. Treasury bonds with maturities starting from 1 to 30 years. IBIT is a well-liked selection for traders searching for publicity to the U.S. Treasury market, because it presents a low-cost and diversified method to take action.
The worth of IBIT is decided by the worth of the underlying Treasury bonds. As rates of interest rise, the value of Treasury bonds sometimes falls, and vice versa. It’s because traders are much less keen to pay a premium for a bond that pays a decrease rate of interest than they may get from a brand new bond with the next rate of interest. In consequence, the value of IBIT is inversely correlated to rates of interest.
