3 ms·
You could be right but that doesn't explain why the yield to maturity is reported so low. The yield to maturity should be the earning you get if you hold the f
by anotherman554 3y ago
You could be right but that doesn't explain why the yield to maturity is reported so low.
The yield to maturity should be the earning you get if you hold the fund until maturity and interest rates stay as they are today. It's possible Ishares is not reporting this number accurately.
- adam_arthur 3y agoThey own T Bills, so the yield you get is the same as on the T Bill. Any difference is from the management fee (0.05%) or due to T Bills that haven’t matured yet which don’t reflect current rate. There are different ways of measuring a fund’s yield, but at the end of the day this is mechanically how this fund works.
- mbesto 3y agohttps://www.etf.com/etf-education-center/etf-basics/how-do-bond-etfs-work https://www.etf.com/etf-education-center/etf-basics/how-do-b...