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3-year government ETFs, here are the top performers

In this article, we will focus on a selection of the best government bond ETFs that have demonstrated better performance over the previous three years.
These financial instruments offer exposure to government bonds issued by highly creditworthy governments, but what makes them exceptional is the fact that they have demonstrated strength and earnings potential over the past three years.
We will carefully explore these investment options, analyzing characteristics, past performance and crucial considerations, in order to help you make informed decisions on whether to integrate these government ETFs into your portfolio, seeking attractive returns and stability.
1.
iShares China CNY Bond – USD Hdg.
(Dist) The iShares China CNY Bond was created specifically for investors interested in gaining exposure to the Chinese bond market, with a focus on US dollar (USD) currency hedging.
This ETF tracks the Bloomberg China Treasury and Policy Bank (USD Hedged) index, which is composed of bonds listed on the China Interbank or issued by the Chinese government and subsidiary banks.
With an annual total expense ratio (TER) of 0.40%, the iShares China CNY Bond UCITS ETF USD Hedged (Dist) offers investors a relatively low-cost way to access the Chinese bond market.
read also Stellar returns for this ETC, +250% in 3 years The ETF has a strategy that involves only long, i.e.
upward, positions.
Currency hedging, on the other hand, in US dollars helps mitigate the risk associated with currency fluctuations, offering greater stability to investors trading with this currency.
The ETF manages assets of approximately 400 million Euros and was launched on 4 November 2019.
This product offers European investors a convenient vehicle to access the Chinese bond market without having to directly purchase a single bond, favoring diversification.
Regarding returns, the ETF distributes the coupon yield to investors semi-annually.
Over the years, the fund has demonstrated variable performance, with a YTD return of +5.37%.
It is important to keep in mind that, like any other type of investment, returns can fluctuate over time, and investors should carefully consider historical data before making investment decisions.
On the risk front, the ETF shows a 1-year volatility of 8.56%, which reflects short-term price changes.
However, it also features a 3-year volatility of 7.96%, indicating greater stability over the longer term.
The maximum drawdown, which represents the maximum loss recorded in a given period, was -10.22% in the last year, -12.44% in the last three years and -15.84% since launch.
2.
WisdomTree USD Floating Rate Treasury Bond The WisdomTree USD Floating Rate Treasury Bond UCITS ETF USD Acc is designed for investors looking to gain exposure to floating rate US Treasury securities.
This ETF tracks the Bloomberg US Treasury Floating Rate Bond Index, which includes US Treasury notes rated AAA.
Floating-rate Treasury bonds offer investors the flexibility to adjust to changes in interest rates, making them an attractive option during times of economic uncertainty.
A distinctive feature of this ETF is its extremely low total expense ratio (TER), which stands at 0.15% per annum.
This makes it an affordable option for investors looking for exposure to this market segment.
The ETF tracks the performance of the benchmark with a full physical replication strategy, which means it actually buys all the stocks in the index.
The ETF's coupon yield is accumulated within the product and invested.
The WisdomTree USD Floating Rate Treasury Bond manages assets of approximately €220 million, a sign of its popularity among investors.
Regarding performance, the ETF recorded a YTD return of +3.90%, with short-term fluctuations highlighted by a 1-year volatility of 8.46%.
However, the more stable 3-year volatility is 7.83%.
The maximum drawdown, which represents the maximum loss recorded in a given period, was -8.65% in the last year and -11.82% in the last three years.
3.
JPMorgan BetaBuilders US Treasury Bond 0-1 yr If you are looking for an investment that provides exposure to USD-denominated US Treasury bonds with a maturity of 0 to 1 year, the product could be an attractive option.
This ETF tracks the ICE US Treasury 0-1 Year index, which is composed of short-term government bonds issued by the US Treasury, characterized by an AAA credit rating, the highest level of reliability.
One of the most significant strengths of this ETF is its very low overall expense ratio which stands at 0.07% pa.
This makes it one of the cheapest ways to gain exposure to short-term US government bonds on the market.
The fund replicates the performance of the reference index with a sampling replication strategy, i.e.
by purchasing the most relevant components of the index.
The ETF has assets of approximately €420 million, demonstrating a solid investor base.
It was launched on July 9, 2019, so with a history of about 4 years.
From a performance perspective, the ETF posted a YTD return of +3.92%, with significant near-term changes highlighted by a 1-year volatility of 8.60%.
However, the 3-year volatility is 7.87%, suggesting greater stability in the medium term.
The maximum drawdown, which represents the maximum loss recorded in a given period, was -8.95% in the last year and -12.25% in the last three years.
read also 4 ETFs to monitor in November 2023 Disclaimer The information and considerations contained in this article should not be used as the sole and main support on which to make investment decisions.
The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk appetite and his time horizon.
The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation for public savings.

Author: Hermes A.I.

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