Fixed Income: U.S. Government Treasury Long-Term
With 6 ETFs and over $8.88B in combined AUM, the Fixed Income: U.S. Government Treasury Long-Term 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 iShares 10-20 Year Treasury Bond ETF (TLH), with a total return of -3.33%. Meanwhile, the most popular ETF is the iShares 20+ Year Treasury Bond ETF (TLT) with $6.31BB in assets under management.
Investors should take a look at the iShares 20+ Year Treasury Bond ETF (TLT). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. The iShares 20+ Year Treasury Bond ETF tracks a market-weighted index of debt issued by the US Treasury with remaining maturities of 20 years or more. TLT has an expense ratio of 0.15% and tracks the ICE U.S. Treasury 20+ Year Bond Index.
ETF.com Efficiency Insight
The average efficiency score in the Fixed Income: U.S. Government Treasury Long-Term segment is 86 out of 100, with the SPDR Portfolio Long Term Treasury ETF(SPTL) obtaining the highest rating of 96 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 SPDR Portfolio Long Term Treasury ETF (SPTL) having the lowest expense ratio, charging investors 0.06% yearly.
Investors should look for funds with tight tracking, such as the Vanguard Extended Duration Treasury ETF (EDV), with a 12-month median tracking difference of -0.03%.
ETF.com Tradability Insight
The average tradability score in the Fixed Income: U.S. Government Treasury Long-Term segment is 93 out of 100, with the iShares 20+ Year Treasury Bond ETF(TLT) obtaining the highest rating of 99 out of 100.
The iShares 20+ Year Treasury Bond ETF (TLT) is the undisputed segment leader when it comes to liquidity. The fund trades 1.24B in daily average volume. Investors should also find ample liquidity in the Vanguard Long-Term Treasury Index ETF (VGLT), with $10.45M in daily dollar volume.
Use limit orders to trade funds such as the PIMCO 25+ Year Zero Coupon US Treasury Index ETF(ZROZ), due to their double-digit market spreads.
ETF.com Fit Insight
The Bloomberg Barclays Long 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 SPTL. 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, TLH follows a Vanilla strategy and obtains a low Fit score compared with our neutral benchmark.