An exchange traded fund (ETF) that is designed to terminate at a certain date (the so-called target maturity). This is achieved by purchasing securities with similar maturities or as close to the specified maturity date and holding these securities to maturity. With the passage of time, the ETF may consider adding other securities that meet the composition and maturity criteria. Over time, the duration of the securities gets shorter until the fund matures.

This type of ETF can mitigate duration risk for investors who remain invested through its overall maturity.

A target maturity ETF, consisting of debt securities, is a form of debt ETF.