American Century Zero Coupon 2025 Fund Investor Class

Frequently Asked Questions About BTTRX

What does BTTRX invest in?

The fund's primary objective is to achieve the maximum possible return while exclusively investing in U.S. Treasury securities. It allocates a substantial portion—at least 80% of its net asset value—to zero-coupon debt instruments. The portfolio primarily consists of zero-coupon U.S. Treasury bonds and their equivalents, which encompass certain zero-coupon U.S. government agency securities. Furthermore, up to 20% of its holdings may be invested in other AAA-rated zero-coupon U.S. government agency securities. It's important to understand that zero-coupon securities do not provide regular interest disbursements or principal repayments throughout their term. This fund is strategically managed to mature in 2025 and is planned for liquidation towards the close of that target year.

What is the expense ratio of BTTRX?

American Century Zero Coupon 2025 Fund Investor Class (BTTRX) charges an expense ratio of 0.55%. This is the annual fee deducted from fund assets to cover management and operations.

What is the duration of BTTRX?

Effective duration measures BTTRX's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. BTTRX's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of BTTRX?

BTTRX's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of BTTRX?

Yield to maturity (YTM) is the total return you'd earn from BTTRX if every bond in the portfolio is held to maturity at the current price. BTTRX's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.

How big is BTTRX?

American Century Zero Coupon 2025 Fund Investor Class (BTTRX) manages $94.2M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.