Short-term US Treasury bonds
This fund holds US government debt that matures within a year, so its price barely moves. It is the closest thing to parking US dollars safely while still earning the going short-term interest rate. People use it as a low-stress home for cash.
Returns shown in USD (your base currency). Past performance is not a reliable guide to future results.
- Almost no price swings, very safe
- Earns short-term US interest rate
- Huge, cheap, easy to trade
- Low long-run return versus stocks
- Income falls when rates drop
- No protection against US dollar weakness
About this fund
The fund tracks the ICE US Treasury Short Bond index, holding US Treasury bills and notes with zero to one year left until maturity. Because the bonds mature so soon, the fund has very little interest-rate risk and behaves much like a US dollar cash account. It is one of the largest and most traded money-market-style bond ETFs in Europe.
Available on Interactive Brokers
Low-cost access to Short-term US Treasury bonds and 10,000+ funds worldwide.
Frequently asked questions
Is IB01.L accumulating or distributing?
iShares $ Treasury Bond 0-1yr UCITS ETF USD (Acc) (IB01.L) is an accumulating ETF, so its dividends are reinvested automatically inside the fund instead of paid out as cash. The value compounds in the share price, which keeps things simple since the dividends are reinvested for you instead of arriving as cash you would otherwise have to reinvest yourself.
What is the annual fee (TER) for IB01.L?
IB01.L has a total expense ratio (TER) of 0.07% per year. On a $10,000 holding that is roughly $7 a year, charged inside the fund rather than billed to you separately. A lower fee leaves more of the return compounding for you over time.
Can I buy IB01.L on Interactive Brokers?
Yes. IB01.L trades on LSE, USD and is available to investors worldwide through Interactive Brokers (IBKR). IBKR is the most popular way to buy UCITS ETFs because of its low FX conversion cost (around 0.03%) and low trading commissions.
What does IB01.L invest in?
iShares $ Treasury Bond 0-1yr UCITS ETF USD (Acc) (IB01.L) tracks the ICE US Treasury 0-1 Year Bond Index. This fund holds US government debt that matures within a year, so its price barely moves. You buy one fund and get the whole basket in a single trade.
Is IB01.L a UCITS ETF, and where is it domiciled?
Yes, IB01.L is a UCITS ETF domiciled in Ireland. For non-US investors, Irish-domiciled UCITS ETFs are usually preferred over US-domiciled ones: US dividend withholding tax is 15% under the tax treaty (versus 30% on US-domiciled funds for many non-US investors), and the holdings sit outside US estate tax.
How risky is IB01.L?
On the TickerCompare 1 to 5 scale, IB01.L is rated low risk (1/5), based on how much its price has moved historically. Higher-risk funds can fall further in a downturn, so match the choice to your time horizon and how much volatility you can stomach.