The SPDR Portfolio Short Term Treasury ETF (SPTS) tracks an index of short-term U.S. Treasuries. The ETF invests in Treasuries with a remaining maturity of one to three years. The ETF provides minimal credit risk and low interest-rate risk. By investing in shorter-term securities, SPTS reduces duration, a measure of bond price sensitivity to interest rate changes. Typically bond prices fall when rates rise. Like most SPDR “Portfolio” ETFs, SPTS is priced competitively with ultra-low-cost rivals like the Vanguard Short-Term Treasury ETF (VGSH) and the Schwab Short-Term U.S. Treasury ETF (SCHO).
The SPDR Portfolio Short Term Treasury ETF (SPTS) tracks an index of short-term U.S. Treasuries. The ETF invests in Treasuries with a remaining maturity of one to three years. The ETF provides minimal credit risk and low interest-rate risk. By investing in shorter-term securities, SPTS reduces duration, a measure of bond price sensitivity to interest rate changes. Typically bond prices fall when rates rise. Like most SPDR “Portfolio” ETFs, SPTS is priced competitively with ultra-low-cost rivals like the Vanguard Short-Term Treasury ETF (VGSH) and the Schwab Short-Term U.S. Treasury ETF (SCHO).
For those willing to take on more credit risk, ultra-short debt ETFs are another popular option for investors looking for a relatively safe way to eke out more yield than brokerage sweep accounts or long-term Treasuries. There are several competitors, such as the JPMorgan Ultra-Short Income ETF (JPST), the iShares Ultra Short-Term Bond ETF (ICSH), and the Goldman Sachs Access Ultra Short Bond ETF (GSST).
State Street launched its ultra-low-cost SPDR Portfolio lineup in October 2017 after years of losing market share to cheaper rivals at BlackRock, Schwab, and Vanguard. This was a humiliating setback since State Street essentilly founded the modern ETF market in 1993 with the launch of the SPDR S&P 500 ETF Trust (SPY). State Street was late to the ultra-low-cost space — BlackRock launched its low-cost iShares Core series five years earlier — but has pushed hard to make up ground. Many of its SPDR Portfolio funds were renamed and repriced for this purpose. Prior to October 2017, SPTS traded under the name SPDR Bloomberg Barclays Short Term Treasury ETF and the ticker SST.