iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) Targets the Middle of the Treasury Curve: Yield and Duration Explained

Sonal Goyal

27 October 2026 05:28 PM AEDT

iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) Targets the Middle of the Treasury Curve: Yield and Duration Explained

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Key Highlights

iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) had net assets of about $16.99 billion and a NAV of $114.63 as of Oct 26, 2026.
The fund tracks the ICE US Treasury 3-7 Year Bond Index with an expense ratio of 0.15%.
Its 30-day SEC yield was 4.86%, with monthly distributions.

The iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) is an index fund that holds U.S. Treasury bonds with remaining maturities of three to seven years. It reported net assets of about $16.99 billion and a net asset value (NAV) of $114.63 per share as of Oct 26, 2026.

Index and Investment Approach

The fund seeks to track the ICE US Treasury 3-7 Year Bond Index, which covers the middle section of the Treasury curve between short-term bills and long-dated bonds. It began trading on Jan 5, 2007 and is classified as an index-style fixed income fund.

Portfolio Composition

Every position is a U.S. Treasury note, 82 in total as of Oct 23, 2026. The three largest were the 4.38% note due Nov 30, 2030, the 4.38% note due Jul 31, 2031 and the 1.88% note due Feb 15, 2032.

Yield and Distributions

The fund reported a 30-day SEC yield of 4.86% as of Oct 23, 2026 and a 12-month trailing yield of 3.80%. Distributions are paid monthly. The most recent distribution was $0.368334 per share, with an ex-date of Oct 1, 2026 and payment on Oct 6, 2026. iShares notes that distribution yield and trailing yield can vary from period to period for reasons such as tax treatment and changes in fund shares outstanding.

Portfolio Characteristics

As of Oct 23, 2026 the portfolio held 82 securities. Weighted average coupon was 3.49, weighted average maturity 4.71 years, effective duration 4.21 years and average yield to maturity 4.82%, with an option adjusted spread of -0.32 bps and convexity of 0.22.

Concentration and Holdings Profile

82 securities were held as of Oct 23, 2026. The five largest positions listed on the fund page totalled about 7.62% of assets, leaving roughly 92.38% across the remaining holdings. That is a low level of concentration, with exposure spread thinly across many issuers. iShares notes that holdings are subject to change and that the weights shown are calculated from vendor prices, which may differ from the fund’s own valuation prices.

Fund Details at a Glance

The iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) is an index-based fixed income fund that began trading on Jan 5, 2007. Its benchmark is the ICE US Treasury 3-7 Year Bond Index, and it pays distributions monthly. As of Oct 26, 2026 it had 148.2 million shares outstanding and net assets of $16,987,563,464. An annual fee of 0.15% works out to $15 for every $10,000 held, before any brokerage commissions.

Risk Disclosures Noted by iShares

Fixed income risks include interest-rate and credit risk: when interest rates rise, the value of debt securities typically declines, and credit risk is the possibility that an issuer cannot make principal and interest payments. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, and its return and yield will fluctuate with market conditions. Shares of ETFs are bought and sold at market price rather than NAV and are not individually redeemed from the fund, and brokerage commissions will reduce returns. Investing involves risk, including possible loss of principal.

Costs and Trading Details

The expense ratio is 0.15%. The fund is listed on Nasdaq with 148.2 million shares outstanding and net assets of $16,987,563,464 as of Oct 26, 2026. The closing price was $114.67 as of Oct 23, 2026, against a NAV of $114.63 on Oct 26, and the premium/discount was 0.03. The 30-day median bid/ask spread was 0.01% and 30-day average volume was 3,167,558 shares.

Final Takeaway

iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) reported net assets of about $16.99 billion and 82 holdings, with its index, fees and distribution schedule as set out above. The monthly distribution schedule, 0.15% expense ratio and 0.01% median bid/ask spread are the main cost and income details reported for the fund.

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