4 Best U.S. Short Term Treasury ETFs to Own Long-Term 1.6

• Asset Category: U.S. Short Term Treasuries

• Long-Term Performance: 5.42% CAGR

• Correlation to U.S. markets: 0.07

• S&P 500 Performance (US Large Cap Blend): 10.87% CAGR

• Back test timeframe: January 1977 – December 2022

• Oldest ETF back tested: iShares 1-3 Year Treasury Bond ETF (SHY)

• Long-Term Performance: 1.65% CAGR

• Correlation to U.S. markets: -0.22

• S&P 500 Performance: 9.36% CAGR

• Back test timeframe: August 2002 – December 2022

• Number of ETFs available in this asset class: 12

• Number of ETFs in this asset class that are 10-years old or older: 4

U.S. Short Term Treasuries vs U.S. Large Cap Blend Equities (aka S&P 500): January 1977 – December 2022

SHY vs SPY: August 2002 – December 2022

SHY vs SPY: July 26, 2002 – January 20, 2023

The Deep Value ETF Accumulator rankings for the 4 oldest U.S. Short Term Treasury ETFs:

The 4 top ranked U.S. Short Term Treasury ETFs head-to-head comparisons:

SPTS vs VGSH vs SCHO vs SHY: December 2011 – December 2022

SPTS vs VGSH vs SCHO vs SHY: December 1, 2011 – January 20, 2023

Stated objectives of the 4 top ranked U.S. Short Term Treasury ETFs:

SPTS – The SPDR® Portfolio Short Term Treasury ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Bloomberg 1-3 Year U.S. Treasury Index (the “Index”). One of the low cost core SPDR Portfolio ETFs, a suite of portfolio building blocks designed to provide broad, diversified exposure to core asset classes. A low cost ETF that seeks to offer precise, comprehensive exposure to U.S. Treasuries that have a remaining maturity between 1 and 3 years. May be less sensitive to interest rate fluctuations than vehicles with longer duration, and is market cap weighted and reconstituted on the last business day of the month. The Bloomberg 1-3 Year U.S. Treasury Index is designed to measure the performance of short term (1-3 years) public obligations of the U.S. Treasury. The Index includes all publicly issued U.S. Treasury securities that have a remaining maturity of greater than or equal to 1 year and less than 3 years, are rated investment grade and have $300 million or more of outstanding face value. In addition, the securities must be denominated in U.S. dollars, fixed rate and non-convertible. Securities excluded from the Index include state and local government series bonds, inflation protected public obligations of the U.S. Treasury, commonly known as “TIPS,” floating rate bonds and coupon issues that have been stripped from bonds included in the Index. The Index is market capitalization weighted and the securities in the Index are updated on the last business day of each month.

VGSH – Vanguard Short-Term Treasury ETF. Seeks to provide current income with modest price fluctuation. Invests primarily in high-quality (investment-grade) U.S. Treasury bonds. Maintains a dollar-weighted average maturity of 1 to 3 years.

SCHO – The fund’s goal is to track as closely as possible, before fees and expenses, the total return of an index that measures the performance of the short-term U.S. Treasury bond market. A straightforward, low-cost fund offering potential tax-efficiency. The Fund can serve as part of the core of a diversified portfolio. Simple access to U.S. Treasury securities having a remaining maturity of between 1 and 3 years. Provides income from the short-end of the Treasury bond yield curve.

SHY – The iShares 1-3 Year Treasury Bond ETF seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities between one and three years. Exposure to short-term U.S. Treasury bonds. Targeted access to a specific segment of the U.S. Treasury market. Use to customize your exposure to Treasuries.

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