US Treasury ETF Investment Strategy and Market Analysis

Advantages of U.S. Treasury Bonds and ETF Investments

U.S. Treasury bonds are issued by the U.S. Department of the Treasury, offering safety and stability with good market liquidity. Through ETFs, investors can hold a diversified portfolio of Treasury bonds at a lower cost, and trading is flexible and convenient, making them the preferred tool for hedging and asset allocation.

Market Background and Yield Trends in 2025

In 2025, short-term U.S. Treasury yields slightly retreated due to expectations of interest rate cuts, while long-term yields continued to fluctuate under the influence of inflation and fiscal policy. In this environment, investors are adopting a mixed strategy with different-duration ETFs to balance returns and risks.

Recommended ETFs of Different Durations

Short-term (1-3 months) is suitable for low-risk individuals, such as BIL, SHV, with less volatility. Mid-term (3-7 years / 7-10 years) balances yield and volatility, such as IEI, IEF, SCHR. Long-term (over 20 years) has significant capital gains potential, but with notable volatility, suitable for investors with high risk tolerance, a typical representative is TLT.

Beginner investment allocation suggestions

It is recommended that beginners diversify their funds into short- to medium-term ETFs to ensure a robust portfolio. When the opportunity for interest rate declines arises, they can moderately increase the proportion of long-term holdings. Choosing low-cost ETFs can enhance long-term gains.

Investment Risks and Summary

Although US Treasury Bond ETF is relatively stable, one should not ignore the risks of interest rate fluctuations, inflation, and exchange rates. The prices of long-term bonds are highly sensitive to interest rate changes and can be quite volatile. Investors should flexibly adjust based on their personal risk tolerance and market conditions to avoid excessive concentration of assets. US Treasury Bond ETF is a powerful tool for stable investment; scientific diversification and dynamic adjustment can enhance asset safety and yield performance.