What is a Treasury ETF?

A Treasury ETF holds U.S. government bonds, which are generally considered among the lowest credit risk securities in the U.S. market. They can be used for diversification, liquidity, or defensive positioning.

But "safe" doesn't mean price-stable. Treasury ETFs can fall when interest rates rise, especially long-duration Treasury ETFs.

When choosing a Treasury ETF, pay attention to maturity or duration: short-term Treasury ETFs tend to be more stable, while long-term Treasury ETFs can be much more volatile. Match the duration to your goal.