ETF Evaluator:
Quadratic Deflation ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in Long Government Over the Last Year
| 3.8% | iShares 20+ Year Trs Bd Buywrt Stgy ETF (TLTW) |
| 2.3% | First Trust Long Duration Opp ETF (LGOV) |
| 1.9% | BondBloxx Bloomberg SevenYrTrgDurUSTrETF (XSVN) |
| 1.8% | WisdomTree 7-10 Year Laddered Trsy ETF (USIN) |
| 1.7% | iShares 7-10 Year Treasury Bond ETF (IEF) |
Risk
Index
Risk
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ETF Details
Quadratic Deflation ETF Overview
Quadratic Deflation ETF (BNDD) is an actively managed Taxable Bond Long Government exchange-traded fund (ETF). KraneShares launched the ETF in 2021.
The investment seeks to benefit from lower growth, deflation, lower or negative long-term interest rates, and/or a reduction in the spread between shorter and longer term interest rates by investing in U.S. Treasuries and options.
The fund invests in Treasuries of various maturities directly or through other exchange-traded funds that invest in Treasuries. The “option strategies” used by the fund are options strategies of various maturities that are tied to the shape of the U.S. interest rate swap curve and structured to limit the loss to the fund and include long options, long spreads and butterflies. The fund is non-diversified.
About Quadratic Deflation ETF (BNDD)
There are 1 members of the management team with an average tenure of 4.87 years: Nancy Davis (2021). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 1 primary benchmark: Bloomberg US Long Treasury TR USD index with a weighting of 100%. Quadratic Deflation ETF has 4 securities in its portfolio. The top 10 holdings constitute 81.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Quadratic Deflation ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. Quadratic Deflation ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 81.4% (81.4% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Quadratic Deflation ETF has 18.7% of the portfolio in cash.
Assets Under Management
The fund has $20 million in total assets, which is below the $4 billion average for the Long Government category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
BNDD Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Quadratic Deflation ETF expense ratio is high compared to funds in the Long Government category. Quadratic Deflation ETF has an expense ratio of 1.02%, which is 342% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Quadratic Deflation ETF has a portfolio turnover rate of 0%, which indicates that it holds its assets around /years. By way of comparison, the average portfolio turnover is 60% for the Long Government category.
Recently, in the month of July 2026, Quadratic Deflation ETF returned -3.2%, which earned it a grade of B, as the Long Government category had an average return of -4.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Quadratic Deflation ETF has a trailing yield of 3.68%, which is below the 5.37% category average.
The fund normally distributes its income monthly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Quadratic Deflation ETF Grades
Year to date, the ETF has returned 2.5%, 5.7 percentage points better than the category, which translates into a grade of A. The fund has returned 0.7% over the past year (grade of B) and -5.2% over the past three years (grade of F).
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BNDD Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| BNDD Return (NAV) | -3.2% | -0.5% | 0.7% | -5.2% | na | na |
| BNDD Return (Price) | -5.0% | -1.2% | 0.3% | -5.3% | na | na |
| NAV +/- Price Return | 1.754% | 0.746% | 0.401% | 0.109% | na | na |
| Long Government Avg | -4.1% | -2.7% | -1.0% | -1.5% | -7.7% | -2.3% |
| BNDD Grade (NAV) | B | A | B | F | na | na |
| +/- Category (NAV) | 0.8% | 2.3% | 1.7% | -3.7% | na | na |
| BNDD Tax-Cost Ratio | na | na | 1.5% | 1.5% | na | na |
BNDD Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| BNDD Return (NAV) | 2.5% | -8.1% | -6.2% | 3.8% | -17.7% | na | na | na | na | na | na |
| BNDD Return (Price) | 1.5% | -7.5% | -6.7% | 4.0% | -17.5% | na | na | na | na | na | na |
| NAV +/- Price Ret | -0.411% | -0.071% | 0.066% | 0.046% | -0.013% | na | na | na | na | na | na |
| Long Government Avg | -3.2% | 4.1% | -6.3% | 2.4% | -29.1% | -4.5% | 16.7% | 14.2% | -1.6% | 8.1% | 1.2% |
| BNDD Grade (NAV) | A | F | C | A | A | na | na | na | na | na | na |
| +/- Category | 5.7% | -12.3% | 0.0% | 1.5% | 11.4% | na | na | na | na | na | na |
| Risk Measures | |
| Beta: | 1.24 |
| R-Squared: | 48% |
| Standard Deviation: | 10.1% |
| Category Risk Index: | 0.80 |
| Category Risk Rating: | Below Average |
| Total Risk Index: | 0.82 |
| Total Risk Rating: | Below Average |
| Portfolio Characteristics | |
| Yield: | 3.7% |
| Total Assets: | $ 21 Mil |
| Share Class Assets: | $ 21 Mil |
| Turnover: | na |
| Expense Ratio: | 1.02% |
| Index Fund: | No |
| Index Tracked: | Bloomberg US Long Treasury TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 4.9 years | |||
| Average Tenure: 4.9 years | |||
| Managers (Year): Davis Nancy (2021) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 4 |
| % in Top 10 Holdings: | 81.3% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 81.4% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 18.7% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | KraneShares |
| Phone Number: | 855-857-2638 |
| Website: | http://www.kraneshares.com |
| Inception Date: | September 16, 2021 |
Expenses and Fees
| Expense Ratio (%): | 1.02% (Rating: High) |
| Category Average Expense Ratio (%): | 0.23% |
