SHY

📎 Investment Objective

The iShares 1-3 Year Treasury Bond ETF (SHY) seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities between one and three years.

✨ Key Features

• Focuses on short-term U.S. Treasury bonds with maturities between 1-3 years
• Designed to provide stability and low volatility in a fixed income allocation
• Potential for regular income through interest payments
• Low expense ratio of 0.00%

⚠️ Primary Risks

• Interest rate risk: The value of the bonds may decline as interest rates rise
• Credit risk: The risk of default by the U.S. government, although considered very low
• Liquidity risk: The bonds may be difficult to sell in certain market conditions
• Reinvestment risk: Coupon payments may need to be reinvested at lower yields

👤 Best For

This ETF may be suitable for investors seeking a low-risk, low-volatility fixed income allocation to help stabilize their overall portfolio. It can be particularly useful for investors with a short-term investment horizon or those looking to manage interest rate risk in their bond holdings.