Great question!
๐ What is a Short-Term
Bond ETF?
A Short-Term Bond ETF is an exchange-traded fund
that invests in bonds with short maturity—usually less than 3 years.
๐ง In simple words:
It's like a basket of short-term loans that pays you interest and is less
risky than long-term bonds.
๐ก Let’s break it down:
|
Term |
Meaning |
|
Short-term |
The bonds inside the fund mature in less than 3 years |
|
Bond |
A loan to a company or government—you get paid interest |
|
ETF |
A fund traded like a stock, holding many bonds to
reduce risk |
✅ Why investors like Short-Term
Bond ETFs:
- Low
risk – less chance of big losses when interest rates change
- Stable
income – pays regular interest
- Better
than savings account – usually earns more than a bank deposit
- Easy
to buy/sell – traded on the stock market like a normal stock
๐ Example ETFs (U.S.):
- SHY
– iShares 1-3 Year Treasury Bond ETF
- VGSH
– Vanguard Short-Term Treasury ETF
- SPSB
– SPDR Portfolio Short Term Corp Bond ETF
๐ด Who should use them?
- People
who want to protect their money (capital preservation)
- Retirees,
conservative investors, or those waiting for a bigger opportunity
- Short-term
savers who still want a small return
๐ฐ๐ญ In Khmer:
Short-term bond ETF แាแแ័แแា
แឺแាแข្แแแិแិแោแแ្แុแแ័แ្แแំแុแ แែแแាแแแៈแេแแ្แ
ីแ្แ
แ់แ្แី (แិแ
แាแ แฃแ្แាំ)។
แាแขាแ
แ្แแ់แ
ំแូแแាแแ្แិแแាแ (แ្แាแ់แាแแ្แាแ់)
แ ើแแាแแ ាแិแ័แแាแ។
แข្แแแขាแ
แិแ/แแ់แាแូแ
แាแាแិแ្แแแ្แแាแแ ៊ុแแ្แុแแីแ្แាแ។
Let me know if you want a step-by-step on how to find or buy
them using your Schwab account.