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Is iShares iBonds 1-5 Year Treasury Ladder ETF (LDRT) a Strong ETF Right Now?
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Designed to provide broad exposure to the Government Bond ETFs category of the market, the iShares iBonds 1-5 Year Treasury Ladder ETF (LDRT - Free Report) is a smart beta exchange traded fund launched on 11/07/2024.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Blackrock, LDRT has amassed assets over $207.83 million, making it one of the average sized ETFs in the Government Bond ETFs. This particular fund seeks to match the performance of the BLACKROCK IBONDS 1-5 YEAR TRSR LDR ID before fees and expenses.
The BlackRock iBonds 1-5 Year Treasury Ladder Index composes of a portfolio of underlying iShares iBonds Treasury ETFs with maturities less than six years.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.07% for LDRT, making it one of the cheaper products in the space.
It's 12-month trailing dividend yield comes in at 3.77%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Ishares Ibonds Dec 2026 Term Cl1 (IBTG) accounts for about 20.13% of the fund's total assets, followed by Ishares Ibonds Dec 2027 Term Cl1 (IBTH) and Ishares Ibonds Dec 2028 Term Cl1 (IBTI).
Its top 10 holdings account for approximately 100% of LDRT's total assets under management.
Performance and Risk
So far this year, LDRT has added roughly 0.6%, and is up roughly 3.03% in the last one year (as of 07/31/2026). During this past 52-week period, the fund has traded between $24.88 and $25.57.
The ETF has a beta of -0.01 and standard deviation of 2.72% for the trailing three-year period. With about 7 holdings, it has more concentrated exposure than peers .
Alternatives
iShares iBonds 1-5 Year Treasury Ladder ETF is a reasonable option for investors seeking to outperform the Government Bond ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Intermediate-Term Treasury Index Fund ETF Shares (VGIT) tracks Bloomberg Barclays U.S. 3-10 Year Government Float Adjusted Index and the iShares U.S. Treasury Bond ETF (GOVT) tracks ICE US Treasury Core Bond Index. Vanguard Intermediate-Term Treasury Index Fund ETF Shares has $41.7 billion in assets, iShares U.S. Treasury Bond ETF has $43.61 billion. VGIT has an expense ratio of 0.03% and GOVT changes 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Government Bond ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is iShares iBonds 1-5 Year Treasury Ladder ETF (LDRT) a Strong ETF Right Now?
Designed to provide broad exposure to the Government Bond ETFs category of the market, the iShares iBonds 1-5 Year Treasury Ladder ETF (LDRT - Free Report) is a smart beta exchange traded fund launched on 11/07/2024.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Blackrock, LDRT has amassed assets over $207.83 million, making it one of the average sized ETFs in the Government Bond ETFs. This particular fund seeks to match the performance of the BLACKROCK IBONDS 1-5 YEAR TRSR LDR ID before fees and expenses.
The BlackRock iBonds 1-5 Year Treasury Ladder Index composes of a portfolio of underlying iShares iBonds Treasury ETFs with maturities less than six years.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.07% for LDRT, making it one of the cheaper products in the space.
It's 12-month trailing dividend yield comes in at 3.77%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Ishares Ibonds Dec 2026 Term Cl1 (IBTG) accounts for about 20.13% of the fund's total assets, followed by Ishares Ibonds Dec 2027 Term Cl1 (IBTH) and Ishares Ibonds Dec 2028 Term Cl1 (IBTI).
Its top 10 holdings account for approximately 100% of LDRT's total assets under management.
Performance and Risk
So far this year, LDRT has added roughly 0.6%, and is up roughly 3.03% in the last one year (as of 07/31/2026). During this past 52-week period, the fund has traded between $24.88 and $25.57.
The ETF has a beta of -0.01 and standard deviation of 2.72% for the trailing three-year period. With about 7 holdings, it has more concentrated exposure than peers .
Alternatives
iShares iBonds 1-5 Year Treasury Ladder ETF is a reasonable option for investors seeking to outperform the Government Bond ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Intermediate-Term Treasury Index Fund ETF Shares (VGIT) tracks Bloomberg Barclays U.S. 3-10 Year Government Float Adjusted Index and the iShares U.S. Treasury Bond ETF (GOVT) tracks ICE US Treasury Core Bond Index. Vanguard Intermediate-Term Treasury Index Fund ETF Shares has $41.7 billion in assets, iShares U.S. Treasury Bond ETF has $43.61 billion. VGIT has an expense ratio of 0.03% and GOVT changes 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Government Bond ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.