IShares U.S. Treasury Bond ETF GOVT is a solid option for exposure to the full U.S. Treasury yield curve. It boasts a market-valued-weighted portfolio that is representative of this investment opportunity set and low fee. Indexing is a sensible approach in this space as the market is extremely liquid and relatively homogeneous. Consequently, it is difficult for active strategies to consistently find and exploit mispricing. But this fund’s fee isn’t as competitive as those charged by some of its closest peers, which limits its Morningstar Analyst Rating to Bronze.
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.