IEI: The Prospects Don't Justify The Fees Right Now

(7min)

Summary

  • IEI targets intermediate-term U.S. Treasuries but introduces unnecessary interest rate risk with a 4.26-year duration.
  • Historical performance shows IEI's sensitivity to Fed actions, with significant price moves during crises and periods of uncertainty.
  • Current risks outweigh the prospects; sticky inflation and a slower pace of cuts make IEI less attractive.

United States Treasury Building

steinphoto

The iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI), launched on 01/05/2007 by BlackRock, Inc. and managed by BlackRock Fund Advisors, is an ETF that tracks the performance of the ICE U.S. Treasury 3-7 Year Bond Index. IEI manages $15.35B and charges an expense

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I've been a self-taught investor since I was 19 years old and am currently developing a systematic macro strategy.

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