Fixed Income: U.S. - Government, Treasury Investment Grade Long-Term
With 7 ETFs and over $25.61B in combined AUM, the Fixed Income: U.S. - Government, Treasury Investment Grade Long-Term segment provides exposure to the U.S. space with a focus on Investment Grade securities.
Year-to-date, the best-performing ETF in the segment is the PIMCO 25+ Year Zero Coupon US Treasury Index ETF (ZROZ), with a total return of 35.31%. Meanwhile, the most popular ETF is the iShares 20+ Year Treasury Bond ETF (TLT) with $18.54BB in assets under management.
Investors should take a look at the Vanguard Long-Term Treasury Index ETF (VGLT). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. VGLT tracks a market weighted index of fixed income securities issued by the U.S. Treasury, excluding inflation-protected bonds, with maturities of at least 10 years. VGLT has an expense ratio of 0.05% and tracks the Bloomberg Barclays Long U.S. Treasury Index.
ETF.com Efficiency Insight
The average efficiency score in the Fixed Income: U.S. - Government, Treasury Investment Grade Long-Term segment is 81 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 0.10% per year, with the Schwab Long-Term U.S. Treasury ETF (SCHQ) having the lowest expense ratio, charging investors 0.05% yearly.
Investors should look for funds with tight tracking, such as the Vanguard Long-Term Treasury Index ETF (VGLT), 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 Investment Grade Long-Term segment is 97 out of 100, with the iShares 20+ Year Treasury Bond ETF(TLT) obtaining the highest rating of 100 out of 100.
The iShares 20+ Year Treasury Bond ETF (TLT) is the undisputed segment leader when it comes to liquidity. The fund trades 2.88B in daily average volume. Investors should also find ample liquidity in the Vanguard Extended Duration Treasury ETF (EDV), with $74.27M 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 . 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, follows a strategy and obtains a low Fit score compared with our neutral benchmark.