Schwab Short-Term U.S. Treasury Fund

The Schwab Short-Term U.S. Treasury Fund is an exchange-traded fund that primarily invests in short-duration U.S. Treasury bonds. The fund's main purpose is to provide investors with exposure to government-issued bonds that typically have maturities between one and three years. This focus on short-term maturities means that the fund is less sensitive to interest rate changes compared to long-duration bond funds. The Schwab Short-Term U.S. Treasury Fund is ideal for investors seeking stability and modest returns, as these bonds are backed by the full faith and credit of the U.S. government, lending strong creditworthiness and lower risk. It is frequently utilized by investors looking to earn steady income through regular interest payments while maintaining relatively low levels of risk in their portfolios. In the broader financial market, this fund serves as a tool for risk management and diversification, particularly in uncertain economic environments, due to its focus on liquid, secure assets with a predictable income stream.