BNDD ETF — Holdings & Analysis

A key feature of BNDD is its non-diversified structure, and it carries an expense ratio of 1.02%. The fund's strategy focuses on benefiting from deflationary environments, making it a unique offering within the Equity ETF landscape. Past performance does not guarantee future results.

Quadratic Deflation ETF (BNDD) ETF — Price, Holdings & Analysis

The Quadratic Deflation ETF (BNDD) is an Equity ETF with approximately $0.01B in assets under management. Launched in September 2021, BNDD seeks to provide exposure to Treasuries of various maturities, either directly or through investments in other Treasury ETFs. A key feature of BNDD is its non-diversified structure, and it carries an expense ratio of 1.02%. The fund's strategy focuses on benefiting from deflationary environments, making it a unique offering within the Equity ETF landscape. Past performance does not guarantee future results.

ETF Overview

It invests in Treasuries of various maturities directly or through other ETFs that invest in Treasuries. The fund is non-diversified.

The Quadratic Deflation ETF (BNDD) aims to capitalize on potential deflationary periods by investing in U.S. Treasury securities. It achieves this exposure either directly or by investing in other ETFs that focus on Treasuries. A significant portion of the fund, 81.68%, is allocated to the Vanguard Long-Term Treasury ETF (VGLT), indicating a preference for long-term Treasury exposure. The fund's sector allocation is heavily weighted towards Financial Services at 79.9%, reflecting its focus on Treasury investments, with the remaining 20.1% in Cash & Others. BNDD is classified as non-diversified, meaning it can concentrate its investments in a smaller number of holdings compared to a diversified fund. This strategy is designed for investors who believe deflationary pressures will increase and are seeking a specialized tool to potentially benefit from such an environment. Past performance does not guarantee future results.

Risk Metrics

BNDD's non-diversified structure introduces concentration risk, as a significant portion of its assets are allocated to a single holding, the Vanguard Long-Term Treasury ETF (VGLT). This means the fund's performance is heavily reliant on the performance of long-term Treasury bonds. The fund's sector allocation is also concentrated, with 79.9% in Financial Services, increasing sector-specific risk. With a beta of 1.23, BNDD exhibits higher volatility compared to the broader market. The expense ratio of 1.02% is relatively high, which can create a significant drag on returns, especially in a low-yield environment. Investors should carefully consider these factors before investing in BNDD. Past performance does not guarantee future results.

Expense Ratio

1.02%

What does BNDD hold?

Holding	Weight
Vanguard Long-Term Treasury ETF (VGLT)	81.68%

How Is the Fund Allocated?

Sector	Weight
Financial Services	79.9%
Cash & Others	20.1%

Country	Weight
United States	79.8%
Other	20.3%

Dividend Yield

0.00%

Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) — 0.16% expense ratio
iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
State Street Financial Select Sector SPDR ETF (XLF) — 0.08% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
State Street SPDR S&P 500 ETF (SPY) — 0.09% expense ratio

KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) (Equity) — 0.59% expense ratio
KraneShares Artificial Intelligence & Technology ETF (AGIX) (Equity) — 0.99% expense ratio
KraneShares European Carbon Allowance Strategy ETF (KEUA) (Equity) — 0.87% expense ratio
KraneShares Emerging Markets Consumer Technology ETF (KEM) (Equity) — 0.80% expense ratio
KraneShares China Alpha Index ETF (KCAI) (Equity) — 0.79% expense ratio
KraneShares Wahed Alternative Income Index ETF (KWIN) (Equity) — 0.51% expense ratio

Risk Metrics

Beta: 1.23

Questions & Answers

What is BNDD and what does it track?

The Quadratic Deflation ETF (BNDD) is an Equity ETF managed by KraneShares. Launched in September 2021, BNDD aims to provide exposure to U.S. Treasury securities, either directly or through investments in other Treasury ETFs.

The fund is non-diversified, allowing it to concentrate its investments. Its primary holding is the Vanguard Long-Term Treasury ETF (VGLT), comprising over 80% of its portfolio.

What is the expense ratio for BNDD?

The expense ratio for the Quadratic Deflation ETF (BNDD) is 1.02%. This means that for every $10,000 invested, $102 is deducted annually to cover the fund's operating expenses.

What are the top holdings in BNDD?

As of 2026-03-15, the top holding in the Quadratic Deflation ETF (BNDD) is the Vanguard Long-Term Treasury ETF (VGLT), with a weight of 81.68%.

The remaining assets are primarily held in cash and other short-term investments, accounting for approximately 20.1% of the fund. The fund's strategy focuses on using VGLT to gain exposure to long-term U.S.

Is BNDD a good long-term investment?

Whether BNDD is a suitable long-term investment depends on an investor's outlook on inflation and deflation. BNDD is designed to perform well during deflationary periods, when Treasury bond prices typically rise.

However, during inflationary periods, the value of Treasury bonds may decline, negatively impacting BNDD's performance. The fund's high expense ratio of 1.02% can also erode long-term returns.

How does BNDD compare to similar ETFs?

BNDD is somewhat unique, as it is specifically designed to benefit from deflationary environments, a strategy not commonly found in other ETFs.

Its expense ratio of 1.02% is higher than many broad-based Treasury ETFs, which typically have expense ratios below 0.20%. BNDD's AUM is relatively small at $0.01B, compared to larger, more established Treasury ETFs with billions in assets.

Does BNDD pay dividends?

As of 2026-03-15, the Quadratic Deflation ETF (BNDD) has a dividend yield of 0.00%. This indicates that the fund is not currently distributing any dividend income to its shareholders.

The fund's focus is on capital appreciation through investments in Treasury securities, rather than generating income through dividends. Investors seeking dividend income may want to consider other ETFs with a focus on dividend-paying assets.