Fixed Income: U.S. - Government, Treasury Investment Grade Short-Term
With 6 ETFs and over $45.54B in combined AUM, the Fixed Income: U.S. - Government, Treasury Investment Grade Short-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 iShares iBonds Dec 2022 Term Treasury ETF (IBTB), with a total return of 0.08%. Meanwhile, the most popular ETF is the iShares 1-3 Year Treasury Bond ETF (SHY) with $19.31BB in assets under management.
Investors should take a look at the Vanguard Short-Term Treasury Index ETF (VGSH). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. VGSH tracks a market-weighted index of fixed income securities issued by the U.S. Treasury, excluding inflation-protected securities, with maturities of 1-3 years. VGSH has an expense ratio of 0.05% and tracks the Bloomberg US Treasury 1-3 Year Index.
ETF.com Efficiency Insight
The average efficiency score in the Fixed Income: U.S. - Government, Treasury Investment Grade Short-Term segment is 95 out of 100, with the Schwab Short-Term U.S. Treasury ETF(SCHO) 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 0.07% per year, with the Vanguard Short-Term Treasury Index ETF (VGSH) having the lowest expense ratio, charging investors 0.05% yearly.
Investors should look for funds with tight tracking, such as the SPDR Portfolio Short Term Treasury ETF (SPTS), with a 12-month median tracking difference of -0.02%.
ETF.com Tradability Insight
The average tradability score in the Fixed Income: U.S. - Government, Treasury Investment Grade Short-Term segment is 85 out of 100, with the iShares 1-3 Year Treasury Bond ETF(SHY) 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 148.29M in daily average volume. Investors should also find ample liquidity in the Vanguard Short-Term Treasury Index ETF (VGSH), with $53.13M in daily dollar volume.
Use limit orders to trade funds such as the iShares iBonds Dec 2023 Term Treasury ETF(IBTD), due to their double-digit market spreads.
ETF.com Fit Insight
The Bloomberg US Treasury 1-3 Year 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.