GOVT: Total U.S. Bond ETF To Help Risk-Adjusted Returns

(7min)

Summary

  • GOVT is a low-cost ETF tracking U.S. Treasury bonds, offering diversified exposure across various maturities with a 0.05% expense ratio.
  • It provides better risk-adjusted returns compared to a 100% stock portfolio, with lower volatility and a higher Sharpe Ratio.
  • GOVT's performance aligns closely with Intermediate Term Treasuries, offering a balanced risk-return profile and monthly dividends of around 3%.
  • Despite lacking international bonds, GOVT is a solid choice for long-term investors seeking stability and consistent income.

Bond word in wooden blocks with coins on floor. Investment bond, Bond increasing, Raising funds and financial and banking concept.

Wipada Wipawin

GOVT

Per iShares, the investment objective of the iShares U.S. Treasury Bond ETF seeks to track the investment results of an index composed of U.S. Treasury bonds. It is a simple fund that holds exposure to U.S. Treasuries ranging from 1-30 year

This article was written by

The author is a mechanical engineer. He holds a B.S. in Mechanical Engineering and an M.B.A in Finance. He employs evidence and factor-based investing in his personal portfolio.He will sometimes seculate for fun and take small positions in individual stocks he believes are trading at a discount.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GOVT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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