Introduction

The official platform buying U.S. Treasury bonds, TreasuryDirect, has faced criticism for its outdated design and limited accessibility. To address this, some investors are turning to an alternative approach for purchasing Treasurys: investing in exchange-traded funds, or ETFs.

With Treasury ETFs, investors can access Treasurys through a stock-like instrument that is traded on market exchanges.

This approach offers greater liquidity, diversification, and lower transaction costs compared to traditional methods. Additionally, these ETFs provide a regular income stream and give investors clear visibility into their exposures.

Experts recommend watching for key factors like yield to maturity, which predicts the expected return assuming all bonds are held until maturity, and duration, which measures sensitivity to interest rate changes.

By combining the credit quality of Treasurys with the accessibility and liquidity of stocks, these ETFs present an appealing option for investors seeking safety and stability.

Conclusion

Jeffrey Johnson from Vanguard emphasizes that Treasurys are considered the safest security due to their low risk of default, being backed by the full faith and credit of the U.S. Treasury Department.