(CBUE) iShares Treasury Bond - Ratings and Ratios

The iShares $ Treasury Bond 3-7yr UCITS ETF EUR Hedged (Dist) is designed to mirror the performance of the ICE U.S. Treasury 3-7 Year Bond Index, net of fees. To achieve this, the fund invests in a basket of fixed-income securities that closely replicates the benchmark index, comprising U.S. Treasury bonds with maturities between 3 and 7 years.

Given the funds objective and investment strategy, its performance is closely tied to changes in U.S. Treasury bond yields within the specified maturity range. The funds EUR Hedged share class is designed to mitigate the impact of currency fluctuations between the USD and EUR, making it more suitable for EUR-denominated investors seeking exposure to U.S. Treasury bonds.

Analyzing the provided technical data, the funds last price is €4.27, with short-term moving averages (SMA20 and SMA50) indicating a stable trend at €4.26. The longer-term SMA200 at €4.22 suggests a gradual upward trend over the past year. The Average True Range (ATR) of 0.01 represents a relatively low volatility of 0.30%. The 52-week high and low prices are €4.32 and €4.09, respectively, indicating a moderate price range.

Considering the fundamental data, the funds Assets Under Management (AUM) stand at €844.89 million, indicating a sizable presence in the market. As a UCITS-compliant ETF listed on XETRA, it offers a liquid and regulated investment vehicle for accessing the U.S. Treasury bond market.

Forecasting the funds performance based on the available data, a continued stable trend is expected in the short term, potentially with a slight upward bias given the SMA200. However, the direction of U.S. Treasury yields will be a critical factor influencing the funds performance. If yields decline, the funds value is likely to increase, and vice versa. With the current yield environment and the funds characteristics, a moderate return in line with the underlying index is anticipated, barring significant changes in interest rates or market volatility.

Investors should closely monitor changes in U.S. monetary policy, economic indicators, and global market trends, as these factors can impact U.S. Treasury yields and, consequently, the funds performance. The hedging against EUR/USD currency risk makes this fund an attractive option for European investors seeking to diversify their portfolios with U.S. Treasury bonds.