For those who read my stock market analysis blogs know that I love investing in the long-term bond market. More specifically US Treasuries, Municpal Bonds, and Bond ETF’s.
The steady capital appreciation that these funds offer in combination with the low-risk and of course dividend yield, makes fixed-income sectors an attractive investment for long-term investors.
For long-term investors, asset allocation is especially important to stick with your strategy and split your portfolio between equities and bond funds.
The most attractive features of the iShares US Treasury Bond ETF is the 1 to 5 year ETF overview. The capital appreciation is present along with the dividend yield of just under 2%.
These KPI’s make for an attractive long-term hold to balance out your portfolio. The bulk of this fund is comprised of US Treasury Bonds which have proven to be a safe and fixed return of investment.
Below is the dividend payout schedule of GOVT in 2020 so far 👇
GOVT 5-Year Stock Overview
- 1 to 5 Year Overview
- 52-Week Range
- Expense Ratio
- Dividend Yield
1 to 5 Year Overview: As pictured above the returns for the 1 to 5 year overview period are in the green and capital appreciation has been gained for those who have held. Dividend yield plays a part in the capital appreciation, see the 2020 payout schedule so far (above).
Expense Ratio: The beautiful benefit of ETF investing is a significantly lower expense ratio than the fees being paid by most individuals through their mutual fund account. The portfolio manager of any fund will have a fee in addition there will be other fees like maintenance, if you’re investing through a financial institution of any kind.
The expense ratio of GOVT is significantly lower which will keep your portfolio value high. The expense ratio of GOVT is a mere 0.15%.
Beta: The beta or volatility metric of this ETF is recorded at 1.21 which is almost spot on the market movements for volatility. What this means in simple terms is that the ETF is subject to less volatility each quarter.
Dividend Yield: The dividend yield percentage of GOVT is 3.09% which is a very great dividend yield for a bond ETF. This is why I consistently see the dividend payouts in my history tab. Please refer to the 2020 dividend payouts above to get a snapshot of the payment frequency.
In summary, the iShares US Treasury Bond ETF (GOVT) is a fantastic long-term capital appreciation investment to balance out your portfolio.
As the famous Jack Bogle says, “The idea that a bell rings to signal when investors should get into or out of the market is simply not credible. After nearly 50 years in this business I do not know of anybody who has done it successfully and consistently.”
Remember everyone it is a long-term market!
Michael Moran, IHG Management