Bond market
Bonds, in plain English
A bond is a loan. You lend money to a government or a company, they pay interest, and they promise to repay you on a set date. A bond ETF holds thousands of those loans in one fund you can buy like a share.
Treasury yield curve
What the US government pays to borrow
Each figure is the annual interest rate on a US government loan of that length. It is not the return of any fund — a yield and a fund's price are different things.
Loading the latest published curve…
The one rule to remember
Bond prices and interest rates generally move in opposite directions. When market interest rates rise, existing bond prices generally fall, and when rates fall, existing bond prices generally rise. Longer-duration bonds are typically more sensitive to interest-rate changes.
Bond funds can and do lose money. They are usually steadier than shares — not safe.
Short-Term Treasuries
Loans to the US government that are repaid within about three years. Their prices move very little when interest rates change, so they are the steadiest corner of the bond market.
SGOV
iShares 0-3 Month Treasury Bond ETF
Ultra-short TreasuriesVery short US Treasury bills that mature within about three months.
BIL
SPDR Bloomberg 1-3 Month T-Bill ETF
Ultra-short TreasuriesUS Treasury bills maturing in one to three months.
SHY
iShares 1-3 Year Treasury Bond ETF
Short-term TreasuriesUS Treasury notes maturing in one to three years.
VGSH
Vanguard Short-Term Treasury ETF
Short-term TreasuriesShort-dated US Treasury bonds, broadly one to three years to maturity.
Intermediate Treasuries
Government bonds with roughly five to ten years left. More reaction to interest-rate changes than short bills, less than the very longest bonds.
IEF
iShares 7-10 Year Treasury Bond ETF
Intermediate TreasuriesUS Treasury bonds maturing in roughly seven to ten years.
VGIT
Vanguard Intermediate-Term Treasury ETF
Intermediate TreasuriesUS Treasury bonds in the intermediate part of the maturity range.
Long-Term Treasuries
Government bonds with twenty years or more to run. They pay for a long time, which also makes them the most sensitive to interest-rate moves — large falls are possible.
TLT
iShares 20+ Year Treasury Bond ETF
Long-term TreasuriesUS Treasury bonds with twenty years or more left to run.
VGLT
Vanguard Long-Term Treasury ETF
Long-term TreasuriesLong-dated US Treasury bonds.
Broad Bond Market
One fund holding thousands of US investment-grade bonds — government, mortgage and company debt together. Often used as the bond portion of a portfolio.
BND
Vanguard Total Bond Market ETF
Broad bond marketThousands of US investment-grade bonds: government, agency mortgage and corporate debt together.
AGG
iShares Core U.S. Aggregate Bond ETF
Broad bond marketA broad basket of US investment-grade bonds tracking the aggregate bond index.
Corporate Bonds
Loans to companies rather than governments. They pay more interest because there is a real chance of not being repaid. High-yield bonds carry much more of that risk than investment-grade ones.
LQD
iShares iBoxx $ Investment Grade Corporate Bond ETF
Investment-grade corporate bondsBonds issued by large companies rated investment grade.
HYG
iShares iBoxx $ High Yield Corporate Bond ETF
High-yield corporate bondsBonds from companies rated below investment grade — sometimes called junk bonds.
Inflation-Protected Bonds
Government bonds whose value adjusts with official inflation, so the payout is designed to keep pace with rising prices.
TIP
iShares TIPS Bond ETF
Inflation-protected bondsUS Treasury Inflation-Protected Securities, whose principal adjusts with the official inflation measure.
SCHP
Schwab U.S. TIPS ETF
Inflation-protected bondsUS Treasury Inflation-Protected Securities across the maturity range.
Municipal Bonds
Loans to US states, cities and local authorities. Interest is often exempt from federal income tax, which changes how their yields compare with other bonds.
MUB
iShares National Muni Bond ETF
Municipal bondsBonds issued by US states, cities and local authorities to fund public projects.
Fund prices are official closing prices from Scope's stored daily snapshot, not live prices. Treasury yields come from the U.S. Department of the Treasury's published daily figures. Everything here is educational and is not financial advice.