Fixed Income: U.S. Government Treasury Intermediate
With 5 ETFs and over $19.44B in combined AUM, the Fixed Income: U.S. Government Treasury Intermediate segment provides exposure to the U.S. space with a focus on Treasury securities.
Year-to-date, the best-performing ETF in the segment is the SPDR Bloomberg Barclays Intermediate Term Treasury ETF (ITE), with a total return of -1.46%. Meanwhile, the most popular ETF is the iShares 7-10 Year Treasury Bond ETF (IEF) with $8.39BB in assets under management.
Investors should take a look at the Schwab Intermediate-Term US Treasury ETF (SCHR). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. The Schwab Intermediate-Term U.S. Treasury ETF tracks a market weighted index of investment grade debt issued by the U.S. Treasury with remaining maturity of 3-10 years. SCHR has an expense ratio of 0.06% and tracks the Bloomberg Barclays U.S. 3-10 Year Treasury Bond Index.
ETF.com Efficiency Insight
The average efficiency score in the Fixed Income: U.S. Government Treasury Intermediate segment is 96 out of 100, with the Schwab Intermediate-Term US Treasury ETF(SCHR) obtaining the highest rating of 97 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.11% per year, with the Schwab Intermediate-Term US Treasury ETF (SCHR) having the lowest expense ratio, charging investors 0.06% yearly.
Investors should look for funds with tight tracking, such as the Vanguard Intermediate-Term Treasury Index ETF (VGIT), with a 12-month median tracking difference of -0.05%.
ETF.com Tradability Insight
The average tradability score in the Fixed Income: U.S. Government Treasury Intermediate segment is 98 out of 100, with the iShares 7-10 Year Treasury Bond ETF(IEF) obtaining the highest rating of 100 out of 100.
The iShares 7-10 Year Treasury Bond ETF (IEF) is the undisputed segment leader when it comes to liquidity. The fund trades 258.40M in daily average volume. Investors should also find ample liquidity in the iShares 3-7 Year Treasury Bond ETF (IEI), with $48.03M in daily dollar volume.
Use limit orders to trade funds such as the SPDR Bloomberg Barclays Intermediate Term Treasury ETF(ITE), due to their double-digit market spreads.
ETF.com Fit Insight
The Bloomberg Barclays Intermediate U.S. Treasury Index has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.
Investors trying to match a broad market exposure should pay attention to ITE. This fund obtains a high Fit score and investors should capture market-like returns.
Other funds diverge from the market, by nature of their investment mandates; for example, SCHR follows a Vanilla strategy and obtains a low Fit score compared with our neutral benchmark.