SPDR Barclays Capital Short Term Treasury ETF (NYSEArca: SST) tries to reflect the performance of the Barclays Capital 1-5 Year U.S. Treasury Index, which tracks U.S. Treasuries that have a remaining maturity of greater than or equal to 1 year and less than 10 years. SST has an expense ratio of 0.12%. The fund has an average yield to worst of 0.45% with a modified-option adjusted duration of 2.69 years.
“With short-term interest rates near zero, the potential for a rising interest rate environment is a concern for many investors in long-term Treasury bonds,” Ross added. “The launch of the SPDR Barclays Capital Short Term Treasury ETF enhances our short-term government bond SPDR ETF offering.”
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Max Chen contributed to this article.