At a glance
XTWO charges 0.05% a year, below the 0.12% average of the 7 funds most like it (the 2nd cheapest of 8). It has $206.1M in assets, the 8th largest of that group; it paid 3.94% of its price in distributions over the past 12 months, monthly. Over the past year it returned +1.5% with distributions reinvested, 7th of those 8 funds; over three years it returned +4.1% a year. Its ten largest positions make up 14.6% of the fund, out of 94 in all.
The short version
BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) holds US Treasury notes and bonds picked to keep the portfolio's duration near two years. Duration measures how sensitive a bond is to changes in interest rates. The fund charges 0.05% a year, below the 0.12% average of similar funds, though Vanguard's VGSH charges 0.03%. It is also much smaller than its rivals, with about $206 million in net assets as of July 31, 2026.
Price history
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XTWO +1.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| XTWO official prospectus, to Dec 31, 2025 | — | +5.25% | — | — | — | +4.03% |
| Bloomberg US Treasury Index (reflects no deduction for fees, expenses, or taxes) index, same period | — | +6.32% | — | — | — | +2.84% |
| Bloomberg US Treasury 2 Year Duration Index (reflects no deduction for fees, expenses, or taxes) index, same period | — | +5.30% | — | — | — | +4.09% |
| XTWO price data to Oct 27, 2026 | +0.9% | +1.5% | +4.1% | — | — | +3.5% |
- Over the year to Oct 27, 2026, XTWO returned +1.5%, 7th of 8 among similar funds.
- Its worst full calendar year was 2024 (+3.9%); its best was 2025 (+5.2%).
- The deepest fall in its price history was 1.7% (May 4, 2023 to Jul 6, 2023), recovered by Nov 14, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +0.9% | — |
| 2025 | +5.2% | +5.25% |
| 2024 | +3.9% | +3.87% |
| 2023 | +4.3% | +4.23% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.4100 | |
| 2025 | $2.0900 | -5.9% |
| 2024 | $2.2200 | +11.0% |
| 2023 | $2.0000 |
What's inside
As of Jul 31, 2026, the fund held 94 securities; the ten largest made up 14.63% of assets.
| Holding | Weight | |
|---|---|---|
| US TREAS NTS 4.25% 06/30/29 Bonds and notes | 1.55% | |
| US TREAS NTS 4.625% 04/30/29 Bonds and notes | 1.54% | |
| US TREAS NTS 1.5% 11/30/28 Bonds and notes | 1.52% | |
| US TREAS NTS 3.625% 08/31/29 Bonds and notes | 1.51% | |
| US TREAS NTS 4.5% 05/31/29 Bonds and notes | 1.49% | |
| US TREAS NTS 4% 07/31/29 Bonds and notes | 1.44% | |
| US TREAS NTS 3.875% 04/15/29 Bonds and notes | 1.42% | |
| US TREAS NTS 4.25% 02/28/29 Bonds and notes | 1.40% | |
| US TREAS NTS 4.125% 03/31/29 Bonds and notes | 1.38% | |
| US TREAS NTS 2.75% 02/15/28 Bonds and notes | 1.36% | |
| US TREAS NTS 3.5% 01/15/29 Bonds and notes | 1.36% | |
| US TREAS NTS 0.75% 01/31/28 Bonds and notes | 1.36% | |
| US TREAS NTS 3.125% 11/15/28 Bonds and notes | 1.35% | |
| US TREAS NTS 1.125% 08/31/28 Bonds and notes | 1.34% | |
| US TREAS NTS 1% 07/31/28 Bonds and notes | 1.34% |
By country
United States 98.98%By issuer
US Treasury 98.98%The bonds mature in 2 years on average (weighted by size), with an average coupon of 3.05%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $32.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.09%, +0.05%, +0.11%.
How it works
XTWO tracks the Bloomberg US Treasury Two Year Target Duration Index. Bloomberg Index Services builds it from the broader Bloomberg US Treasury Index. Duration estimates how much a bond's price moves when interest rates change. The higher the duration, the more the price falls when rates rise. The index sorts eligible Treasuries into two buckets: those with durations of 1 to 2 years and those with durations of 2 to 3 years. Within each bucket, bonds are weighted by market value. The two buckets are then blended in the mix that keeps the index's overall duration at two years.
The index is rebalanced on the last business day of each month, so its holdings change as bonds age and new Treasuries are issued. As of December 31, 2025, it held about 101 bonds. BondBloxx uses representative sampling, meaning it holds a sample of bonds that matches the index's duration, yield and other traits instead of every bond. As of July 31, 2026, the fund held 94 positions, and the 10 largest made up 14.63% of assets. The largest was a 4.25% note due June 2029, at about 1.5%.
At least 80% of net assets must go to Treasuries with an average duration near two years. Up to 20% may go to other government securities or cash. The fund held no derivatives as of July 31, 2026. Its portfolio turnover was 55%, which reflects the monthly rebalancing.
What it really costs
- XTWO charges 0.05% a year, versus an average of 0.12% for the similar funds below (2nd of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $5 in the first year and $64 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| XTWO | $5 | $16 | $28 | $64 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It holds only short-term US Treasuries, and its price has moved very little, so it may suit money that has to stay stable.
XTWO could hold money set aside for spending over the next few years in a retirement portfolio. Its record is short. It launched on September 13, 2022, so its history doesn't cover the 2008 crisis, the 2020 crash or most of the 2022 bear market. Its deepest drop was 1.7%, from May 4 to July 6, 2023. It recovered by November 14, 2023, about 4.3 months later. Every full calendar year so far has been positive. The weakest was 2024, at 3.87%. The trailing 12-month yield was 3.94% as of October 27, 2026, paid monthly. That income could shrink if short-term rates fall. Under the SEC's standard example, it costs $5 in the first year on $10,000. Inflation can still eat into what it's worth in real terms. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want two-year Treasury exposure for 0.05% a year, below the 0.12% average of similar funds.
- Retirees setting aside money for spending in the next few years who value small price swings. The fund's deepest drop has been 1.7%.
- Income seekers who want monthly payments from US government debt. The trailing 12-month yield was 3.94% as of October 27, 2026.
Look elsewhere if
- Those who want the lowest cost or a much larger fund: VGSH charges 0.03% and has about $39 billion in net assets, against XTWO's $206 million.
- Savers who want almost no price risk. Treasury bill funds such as SGOV hold bonds that mature in months, not years.
- Investors who want inflation protection or long-term growth. These are regular, non-inflation-linked Treasuries, and the fund's record only starts in September 2022.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| XTWO this fund | 2 yrs | 0.05% | $206.1M | +1.5% | +4.1% |
| SHY iShares 1-3 Year Treasury Bond ETF | 1.9 yrs | 0.15% | $25.91B | +1.7% | +3.9% |
| VGSH Vanguard Short-Term Treasury ETF | 1.9 yrs | 0.03% | $39.20B | +2.2% | +4.2% |
| USFR WisdomTree Floating Rate Treasury Fund | 1.5 yrs | 0.15% | $18.76B | +4.1% | +4.6% |
| SHV iShares Short Treasury Bond ETF | 0.3 yrs | 0.15% | $20.97B | +3.3% | +4.3% |
| BIL SPDR Bloomberg 1-3 Month T-Bill ETF | 0.2 yrs | 0.1356% | $47.08B | +3.3% | +4.3% |
| SGOV iShares 0-3 Month Treasury Bond ETF | 0.1 yrs | 0.09% | $105.98B | +3.4% | +4.4% |
| IEI iShares 3-7 Year Treasury Bond ETF | 4.7 yrs | 0.15% | $17.68B | -0.4% | +4.0% |
Questions investors ask
What's the difference between XTWO and SHY?
Both hold short-term US Treasuries with average maturities near two years. XTWO charges 0.05% a year, while iShares' SHY charges 0.15%. XTWO aims for a two-year duration by blending two duration buckets each month. SHY, as its name suggests, holds Treasuries maturing in 1 to 3 years. SHY is far larger, with about $25.9 billion in net assets. Annualized three-year returns were similar, at 4.1% for both, as of late October 2026.
Does XTWO pay monthly dividends?
Yes. XTWO pays income monthly. Over the 12 months to October 27, 2026, it paid $1.91 per share, a trailing yield of 3.94%. The payments come from interest on the Treasury notes it holds, which had an average coupon of 3.05% as of July 31, 2026. Because the fund keeps reinvesting in new short-term bonds, its income could fall fairly quickly if interest rates drop.
Is XTWO a safe investment?
It is low risk but not risk-free. XTWO holds US Treasuries, which are backed by the full faith and credit of the US government. Their prices still fall when interest rates rise. The fund's deepest drop was 1.7%, in mid-2023, and it recovered in about 4.3 months. Its worst quarter was a 0.68% loss, in the quarter ending June 30, 2023. Inflation can also reduce what its returns can buy.
What is XTWO's expense ratio?
XTWO's expense ratio is 0.05%, according to the prospectus filed February 27, 2026. Under the SEC's standard example, $10,000 invested with a 5% annual return would cost about $5 after one year, $28 after five years and $64 after ten. That ranks second-lowest among eight similar Treasury funds. VGSH, at 0.03%, costs less, and SHY, at 0.15%, costs more.
How has XTWO performed since launch?
Steadily, but with modest gains. The prospectus reports a 5.25% return for 2025 and 4.03% a year since the fund's September 2022 launch, through December 31, 2025. Its index returned 5.30% and 4.09% over the same periods. Based on price, the fund returned 1.5% in the year to October 27, 2026. That ranks seventh of eight similar funds over that stretch.