What is a short-term Treasury ETF?

A short-term Treasury ETF invests in U.S. government bonds with short maturities, often under 1–3 years depending on the fund. These are generally considered low credit risk.

Because duration is low, price swings are typically smaller than with longer-term Treasury ETFs. Yields can still change as policy rates change, but you usually avoid the big drawdowns that long-duration bonds can experience.

Investors often use short-term Treasury ETFs for cash management, defensive positioning, or as a lower-volatility fixed income sleeve. Still, they're not a bank account: prices can move, just less dramatically.