Great question!
📘 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.
🧠 In simple words:
It's like a basket of short-term loans that pays you interest and is less
risky than long-term bonds.
💡 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
📊 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
👴 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
🇰🇭 In Khmer:
Short-term bond ETF មានន័យថា
គឺជាអ្នកវិនិយោគក្នុងប័ណ្ណបំណុល ដែលមានរយៈពេលខ្ចីខ្ចប់ខ្លី (តិចជាង ៣ឆ្នាំ)។
វាអាចផ្តល់ចំណូលមានស្ថិរភាព (ប្រាក់ការប្រាក់)
ហើយមានហានិភ័យទាប។
អ្នកអាចទិញ/លក់វាដូចជាពាណិជ្ជកម្មភាគហ៊ុនក្នុងទីផ្សារ។
Let me know if you want a step-by-step on how to find or buy
them using your Schwab account.