BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) is an exchange-traded fund that seeks to track the investment results of the Bloomberg US Treasury Two Year Duration Index, which comprises U.S. Treasury securities with an average duration of approximately two years. The ETF invests at least 80% of its assets in a portfolio of such securities, either directly or indirectly through other instruments, providing investors with targeted exposure to short-term U.S. Treasuries characterized by limited interest-rate sensitivity and high credit quality; it distributes income monthly and trades on the NYSE Arca exchange under the ticker XTWO with a low expense ratio of 0.05%.
Sponsored and managed by BondBloxx Investment Management Corporation, the pioneering ETF issuer dedicated exclusively to fixed income products, XTWO forms part of a broader lineup that includes ETFs offering precision exposures to U.S. Treasuries, investment-grade and high-yield corporate bonds, emerging markets debt, tax-aware strategies, and private credit. BondBloxx, founded in 2022 and headquartered at 700 Larkspur Landing Circle, Suite 250, Larkspur, California, United States, operates primarily in the U.S. market, serving institutional and retail fixed income investors seeking transparency, liquidity, and cost efficiency in bond ETFs; the firm has no listed subsidiaries or parent entities.
In recent developments, BondBloxx raised $27 million in an October 2024 funding round led by Macquarie Asset Management, which also deepened its strategic partnership through a collaborative private credit ETF initiative, fueling platform expansion and new product development. The company doubled its assets under management in 2025 milestones, launched two new tax-aware fixed income ETFs in partnership with IR+M, released its 2026 Fixed Income Outlook, and earned recognition as the 2025 Best International Fixed Income ETF Issuer. XTWO itself, incepted on September 13, 2022, has grown to approximately $168 million in net assets as of late 2025, maintaining stable performance amid volatile rates.