Exchange Traded Fund or the Like Related to Basket of Fixed Income Securities Having Similar Maturities

摘要

An exchange traded fund (ETF) is composed of a basket of fixed income securities. The fixed income securities have maturity dates within a relatively narrow range from a predefined range of each other (e.g., within approximately from five years from the launch of the ETF). The ETF pays interest to its owners. After the maturity dates, the ETF pays the principal to its owners and ceases operation. The ETF therefore has performance characteristics similar to an individual bond while having the diversification benefits of a traditional ETF or other fund.