(XHLF) Bondbloxx Trust - BondBloxx - Ratings and Ratios

The BondBloxx Bloomberg Six-Month Target Duration US Treasury ETF (NYSE ARCA:XHLF) allocates at least 80 % of its net assets-plus any investment-purpose borrowings-to U.S. Treasury securities with an average duration of roughly six months, either through direct holdings or derivative exposure. The underlying index tracks a subset of securities from the Bloomberg US Treasury Index, and the fund is classified as a non-diversified, ultra-short-bond ETF.

Key metrics to watch:
• Current weighted-average maturity (WAM) is about 0.5 years, positioning the fund to benefit from near-term rate moves.
• Expense ratio stands at 0.15 %, modest for the ultra-short space, but any increase could erode net returns given the low yield environment.
• Effective duration sensitivity is ~0.5, meaning a 100 bp rise in the 2-year Treasury rate would depress the ETF’s price by roughly 0.5 %.

Economic drivers:
• Federal Reserve policy expectations dominate performance; a pivot to a more dovish stance would likely lift Treasury prices and support XHLF’s yield.
• Inflation data (CPI, PCE) directly influence short-term rates, making the ETF a barometer for market reactions to price pressures.
• Liquidity in the Treasury market remains high, reducing transaction costs and supporting tight bid-ask spreads for ultra-short instruments.

For a deeper quantitative dive into XHLF’s risk-adjusted returns and scenario analysis, the ValueRay platform offers free, interactive tools that can help you validate whether this ultra-short Treasury exposure aligns with your short-term income objectives.