Short Term Treasury



Short term treasury funds generally have an average maturity around 2-3 years.  The fund will accomplish this by purchasing 3-5 year treasuries and selling them when they fall below 1 year (the exact details may vary by fund).

US treasury bonds are generally considered the safest form of bond, since because the government can always print more money there’s virtually no default risk.

Both stable and secure with interest rates slightly higher than treasury money market funds, short term treasuries are a common substitute for portfolio cash.


Index Funds


Source Data
  • 1970-1975: Longinvest’s bonds fund spreadsheet (4-2 model), S
  • 1976-1991: Bloomberg Barclays 1-3 Yr Treasury TR USD, P
  • 1992+: Vanguard Short Term Treasury Fund (VFISX), P


Portfolios with Short Term Treasury assets