There have been some new exchange traded funds (ETFs) added to the fixed income pool this year.  The newest one also has the shortest duration.  The SPDR Lehman 1-3 Month T-Bill (BIL) has a duration of 0.16 years, triple A credit quality rating and tracks the Lehman Brothers 1-3 Month U.S. Treasury Index.

The other two short-term fixed income ETFs are iShares Lehman 1-3 Year Treasury Bond (SHY) and Vanguard Short-Term Bond (BSV).  SHY has been around five years and has $6 billion in assets.  The duration is close to two years.  BSV has a duration of 2.38 years and asses of $5.5 billion.

Zoe Van Schyndel in The Motley Fool reports short-term fixed income ETFs can be an inexpensive place to put some cash or earn some low-risk returns.  As with any investment, make sure you understand what you are buying, how it fits in your portfolio.