iShares 25 Year Treasury STRIPS Bond ETF

iShares 25 Year Treasury STRIPS Bond ETF (GOVZ) provides exposure to long-dated U.S. Treasury zero-coupon bonds that have been stripped of their interest payments. Trading on the AMEX, this ETF focuses specifically on the 25-year maturity segment of STRIPS (Separate Trading of Registered Interest and Principal of Securities), making it a pure play on long-duration Treasury exposure. Because STRIPS pay no periodic interest and are sold at deep discounts to face value, the fund offers no dividend yield, distinguishing it from traditional Treasury bond ETFs. This structure makes GOVZ particularly sensitive to interest rate movements, as long-duration zero-coupon bonds experience amplified price swings compared to coupon-paying bonds.

At $35.89, GOVZ is trading roughly in the middle of its 52-week range of $34.01 to $41.00, suggesting it has retraced significantly from its highs as interest rate expectations have shifted. The recent 0.33% decline reflects the typical volatility inherent in long-duration instruments. Traders watching GOVZ typically monitor Federal Reserve policy signals and 10-year Treasury yields closely, as even small rate changes can produce outsized moves in this ETF. The wide 52-week range illustrates how dramatically long-duration STRIPS can swing based on macroeconomic conditions and inflation expectations.