IShares U.S. Treasury Bond ETF is a solid option for exposure to the full U.S. Treasury yield curve. It boasts a market-value-weighted portfolio that is representative of this investment opportunity set with minimal costs. Indexing is a sensible approach for investing in the Treasury market because it is extremely liquid and relatively homogenous. Active strategies struggle to consistently find and exploit mispricings among Treasury bonds. Cheap access to bonds along the full Treasury curve became even cheaper after the fund cut its fee to 0.05%, lifting its Morningstar Analyst Rating to Silver from Bronze.
Morningstar’s Analysis GOVT
Will GOVT outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable GOVT’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the GOVT management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of GOVT’s parent organization’s priorities and whether they’re in line with investors’ interests.