Investment objective & strategy
As of Feb. 27, 2026 · prospectusObjective. The E*TRADE No Fee U.S. Bond Index Fund (the Fund) seeks to provide investment results that, before fees and expenses, if any, are similar to the underlying index.
Strategy. Under normal circumstances, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in securities included in the underlying index. This policy may be changed without shareholder approval; however, shareholders would be notified upon 60 days notice in writing of any changes. The Fund employs a passive management strategy designed to provide investment results that, before fees and expenses, if any, are similar to the Bloomberg U.S. Government Credit Bond Index (the Index). The Index is a broad-based flagship benchmark that measures the non-securitized component of the Bloomberg U.S. Aggregate Index. The Index includes investment grade, U.S. dollar- denominated, fixed-rate treasuries (i.e., public obligations of the U.S. Treasury that have remaining maturities of more … Under normal circumstances, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in securities included in the underlying index. This policy may be changed without shareholder approval; however, shareholders would be notified upon 60 days notice in writing of any changes. The Fund employs a passive management strategy designed to provide investment results that, before fees and expenses, if any, are similar to the Bloomberg U.S. Government Credit Bond Index (the Index). The Index is a broad-based flagship benchmark that measures the non-securitized component of the Bloomberg U.S. Aggregate Index. The Index includes investment grade, U.S. dollar- denominated, fixed-rate treasuries (i.e., public obligations of the U.S. Treasury that have remaining maturities of more than one year), U.S. government-related and corporate securities. Principal and interest must be denominated in U.S. dollars and securities must have a minimum par amount outstanding of $300 million and must be rated investment grade (Baa3/BBB-/BBB- or higher) using the middle rating of Moodys Investors Service, Inc., S&P Global Ratings Group and Fitch Ratings. When a rating from only two agencies is available, the lower is used; when only one agency rates a bond, that rating is used. Securities must have at least one year until final maturity, regardless of optionality and bonds that convert from fixed to floating rate, including fixed-to-floating rate perpetuals, will exit the Index one year prior to conversion to floating-rate. Fixed-rate perpetuals are not included in the Index. The Index is rebalanced monthly. As of December 31, 2025, the Index had 10,048 constituents. The Fund uses a sampling method of indexing. The sampling method involves selecting a representative number of securities that will resemble the Index in terms of key risk and other characteristics. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as duration, maturity, interest rate sensitivity, security structure, credit quality, market value and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures similar to those of the Index. The Fund expects to hold those categories of fixed income securities included in the Index. The Fund may or may not hold all of the securities in the Index or hold securities in the same proportions as represented in the Index. There is no limitation on the maturity of specific fixed income securities held by the Fund. The Fund will concentrate its investments (i.e., invest 25% or more of its total assets) in a particular industry or group of industries if the Index is so concentrated. The degree to which components of the Index represent certain industries may change over time. The Fund may also lend its securities.
Top holdings
As of Jan. 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| US TREASURY N/B | — | $2.33M | 8.14% |
| US TREASURY N/B | — | $2.20M | 7.67% |
| US TREASURY N/B | — | $1.92M | 6.68% |
| US TREASURY N/B | — | $1.78M | 6.22% |
| US TREASURY N/B | — | $1.61M | 5.63% |
| US TREASURY N/B | — | $1.55M | 5.41% |
| US TREASURY N/B | — | $1.21M | 4.23% |
| US TREASURY N/B | — | $924.42K | 3.23% |
| US TREASURY N/B | — | $792.42K | 2.76% |
| US TREASURY N/B | — | $754.16K | 2.63% |
Portfolio moves
Oct 31, 2025 → Jan 31, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| Global X Intermediate-Term Treasury Ladder ETF · MLDR | 13% | 0.12% |
| JOHNSON INSTITUTIONAL INTERMEDIATE BOND FUND · JIBEX, JIMEX | 13% | 0.25% |
| WisdomTree 7-10 Year Treasury Digital Fund · WTSTX | 12% | 0.05% |
Advisers
| Firm | Role |
|---|---|
| Morgan Stanley Investment Management Inc. | Adviser |
Footnotes
- Expense ratio as of February 27, 2026, from the fund's prospectus.
- Net assets and holdings count as of January 31, 2026, from the fund's N-PORT filing.
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