Fixed Income: U.S. Government Treasury Short-Term
With 5 ETFs and over $15.99B in combined AUM, the Fixed Income: U.S. Government Treasury Short-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 PIMCO 1-3 Year US Treasury Index ETF (TUZ), with a total return of -0.32%. Meanwhile, the most popular ETF is the iShares 1-3 Year Treasury Bond ETF (SHY) with $11.41BB in assets under management.
Investors should take a look at the Schwab Short-Term US Treasury ETF (SCHO). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. The Schwab Short-Term U.S. Treasury ETF tracks a market-weighted index of debt issued by the U.S. Treasury, excluding STRIPS, with remaining maturity of 1-3 years. SCHO has an expense ratio of 0.06% and tracks the Bloomberg Barclays U.S. 1-3 Year Treasury Index.
ETF.com Efficiency Insight
The average efficiency score in the Fixed Income: U.S. Government Treasury Short-Term segment is 95 out of 100, with the SPDR Portfolio Short Term Treasury ETF(SPTS) 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 0.10% per year, with the Schwab Short-Term US Treasury ETF (SCHO) having the lowest expense ratio, charging investors 0.06% yearly.
Investors should look for funds with tight tracking, such as the Vanguard Short-Term Treasury Index ETF (VGSH), 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 Short-Term segment is 95 out of 100, with the Schwab Short-Term US Treasury ETF(SCHO) obtaining the highest rating of 100 out of 100.
The iShares 1-3 Year Treasury Bond ETF (SHY) is the undisputed segment leader when it comes to liquidity. The fund trades 111.38M in daily average volume. Investors should also find ample liquidity in the Schwab Short-Term US Treasury ETF (SCHO), with $19.05M in daily dollar volume.
Use limit orders to trade funds such as the PIMCO 1-3 Year US Treasury Index ETF(TUZ), due to their double-digit market spreads.
ETF.com Fit Insight
The Bloomberg Barclays U.S. 1-3 Year 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 SCHO. 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, SPTS follows a Vanilla strategy and obtains a low Fit score compared with our neutral benchmark.