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Asset Category: Cash (ICE Indices U.S. Treasury Short Bond Index (IDCOTS))
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Long-Term Performance: 4.53%
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Correlation to U.S. markets: -0.01
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S&P 500 Performance (US Large Cap Blend): 10.52% CAGR
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Back test timeframe: January 1972 – January 2024
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Oldest ETF back tested: iShares Short Treasury Bond ETF (SHV)
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Long-Term Performance: 1.17% CAGR
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Correlation to U.S. markets: -0.12
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S&P 500 Performance: 9.48% CAGR
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Back test timeframe: February 2007 – January 2024
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Number of ETFs available in this asset class: 60
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Number of ETFs in this asset class that are 5-years old or older: 16
- ETFs not considered for this article: ETFs with complex underlying assets such as swaps, ETFs with high volatility, and ETFs with durations greater than 1 year.
CASH (U.S. Treasury Short Bond Index (IDCOTS)) vs S&P 500: January 1972 – January 2024
SHV vs SPY: February 2007 – January 2024
SHV vs SPY: January 11, 2007 – February 16, 2024
The Deep Value ETF Accumulator rankings for the 16 oldest Ultra Duration ETFs:
The 5 top ranked Ultra Short Duration Bond ETFs head-to-head comparisons:
PULS vs VNLA vs JPST vs GSY vs NEAR: May 2018 – January 2024
PULS vs VNLA vs JPST vs GSY vs NEAR: April 18, 2018 – February 16, 2024
Stated objectives of top 5 ranked Ultra Short Duration Bond ETFs:
PULS – The investment objective of PGIM Ultra Short Bond ETF is to seek total return through a combination of current income and capital appreciation, consistent with preservation of capital.
VNLA – Janus Henderson Short Duration Income ETF. An ETF seeking global fixed income investments that can provide return above FTSE 3-Month U.S. Treasury Bill Index (a proxy for cash). Want to put cash to work to seek a steady income stream. Seek higher returns on cash than a money market fund. Place high priority on capital preservation. Be looking to diversify their fixed income allocation. Want intra-day liquidity for near-term needs.
JPST – JPMorgan Ultra-Short Income ETF. Invests primarily in a diversified portfolio of short-term, investment grade fixed- and floating-rate corporate and structured debt while actively managing credit and duration exposure.
Targets portfolio duration of less than one year.
GSY – The Invesco Ultra Short Duration ETF (Fund) is an actively managed exchange-traded fund (ETF) that seeks to provide returns in excess of cash equivalents while also seeking to provide preservation of capital and daily liquidity. The Fund will invest at least 80% of its total assets in fixed income securities of varying maturities, but with an average duration of less than one year.
NEAR – The BlackRock Short Duration Bond ETF seeks total return in excess of the reference benchmark. Seeks total return through diversified exposure to short-term bonds. Actively managed by BlackRock’s Short Duration Portfolio Team. Use to step out of cash, manage interest rate risk or diversify a bond allocation.
Thank you for taking time to read this article. If you found it useful, please share it with a friend.
Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator
Previous Deep Value ETF Accumulator article on Ultra Short Duration Bond ETFs:
5 Best Short & Ultra Short Bond ETFs to Own Long-Term 1.6
Disclosure: We currently own shares of JPST and intend to buy more shares in the future. I am not a professional investment advisor. Please perform your own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to and Google AdSense.