Short-Term Treasury ETFs No Longer Make Investment Sense


  • After a strong run over the last 12 months, these short-term Treasury ETFs are now yielding very close to zero.
  • There’s little upside potential and little yield benefit over Treasury money market funds, which lock in your share price at $1.
  • Are these ETFs a risky investment? No, they are fine. But the reward-versus-risk equation doesn’t look appealing.

Over the last year, as short-term interest rates dropped dramatically, a lot of investors poured money into short-term Treasury ETFs as a way to capture a yield advantage over a money market account, while retaining safety.

Unfortunately, those days are over.

Read my full analysis on


About Tipswatch

Author of blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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2 Responses to Short-Term Treasury ETFs No Longer Make Investment Sense

  1. Erwin says:

    All investment grade bonds are yielding less than inflation. So what do you do with the money that you do not want to risk in the stock market?

    • Tipswatch says:

      You can use I Bonds to at least match official U.S. inflation. Otherwise, the choice comes down to 1) accept more risk, or 2) accept a slightly lower standard of living in the future.

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