iShares Short Treasury Bond ETF (SHV)

treasury-bonds cash-management us-treasury-bonds

A passively managed fund that tracks the ICE Short US Treasury Securities Index. It invests in U.S. Treasury bonds with maturities of one year or less. SHV has a low expense ratio of 0.15%, making it a cost-effective option for short-term Treasury exposure. The fund distributes dividends monthly, providing regular income to investors. Its weighting methodology is based on market value, with larger Treasury issues receiving higher allocations in the portfolio. A key differentiating quality of SHV is its focus on short-term Treasuries, which can offer stability and liquidity while potentially providing slightly higher yields than ultra-short-term options. This makes it suitable for investors seeking a low-risk, cash-like investment with some yield potential. The ETF typically holds between 20 to 30 different Treasury securities, offering diversification within its short-term focus.