iShares 1-3 Year International Treasury Bond ETF

ISHG

Market cap $675M

ISHG is best used as a hedge against a significant decline in the US dollar, not as a core money-making investment. The ETF offers low credit and interest rate risk, but its long-term performance has been poor in nominal and real terms. Its value lies in insurance for USD-based investors worried about currency risk, providing positive carry unlike other FX hedges.

U.S. Treasury yields remain elevated after a spike following President Trump's tariff announcements earlier this year. With long-term Treasury yields still close to multi-year highs, investors are tempted to pivot away from stocks in favor of the bond market at this time.

Bond ETFs are in demand in 2025. With less than a third of the year complete, the industry has gathered $110 billion of net inflows.

U.S. stocks have been witnessing massive sell-offs this month due to trade tensions. However, these ETFs survived the bloodbath.