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Is Invesco Equal Weight 0-30 Year Treasury ETF (GOVI) a Strong ETF Right Now?
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Designed to provide broad exposure to the Government Bond ETFs category of the market, the Invesco Equal Weight 0-30 Year Treasury ETF (GOVI - Free Report) is a smart beta exchange traded fund launched on 10/11/2007.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
GOVI is managed by Invesco, and this fund has amassed over $863.33 million, which makes it one of the average sized ETFs in the Government Bond ETFs. Before fees and expenses, GOVI seeks to match the performance of the ICE 1-30 YR LADDERED MATURITY US TRSR ID.
The ICE 1-30 Year Laddered Maturity US Treasury Index is designed to track the performance of up to 30 U.S. Treasury Notes or Bonds representing the annual February maturity ladder across the yield curve.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.15% for this ETF, which makes it on par with most peer products in the space.
GOVI's 12-month trailing dividend yield is 3.66%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, United States Treasury Note/bond-1.50%-02-15-2030 (912828Z94) accounts for about 3.38% of total assets, followed by United States Treasury Note/bond-3.50%-02-15-2033 (91282CGM7) and United States Treasury Note/bond-5.38%-02-15-2031 (912810FP8).
The top 10 holdings account for about 33.65% of total assets under management.
Performance and Risk
The ETF has added roughly 0.43% so far this year and it's up approximately 1.35% in the last one year (as of 05/15/2025). In the past 52-week period, it has traded between $26.57 and $29.71.
GOVI has a beta of 0.31 and standard deviation of 9.62% for the trailing three-year period. With about 30 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Equal Weight 0-30 Year Treasury ETF is not a suitable option for investors seeking to outperform the Government Bond ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
SPDR Portfolio Long Term Treasury ETF (SPTL - Free Report) tracks Bloomberg Barclays Long U.S. Treasury Index and the iShares 20+ Year Treasury Bond ETF (TLT - Free Report) tracks ICE U.S. Treasury 20+ Year Bond Index. SPDR Portfolio Long Term Treasury ETF has $10.74 billion in assets, iShares 20+ Year Treasury Bond ETF has $46.23 billion. SPTL has an expense ratio of 0.03% and TLT charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Government Bond ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Invesco Equal Weight 0-30 Year Treasury ETF (GOVI) a Strong ETF Right Now?
Designed to provide broad exposure to the Government Bond ETFs category of the market, the Invesco Equal Weight 0-30 Year Treasury ETF (GOVI - Free Report) is a smart beta exchange traded fund launched on 10/11/2007.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
GOVI is managed by Invesco, and this fund has amassed over $863.33 million, which makes it one of the average sized ETFs in the Government Bond ETFs. Before fees and expenses, GOVI seeks to match the performance of the ICE 1-30 YR LADDERED MATURITY US TRSR ID.
The ICE 1-30 Year Laddered Maturity US Treasury Index is designed to track the performance of up to 30 U.S. Treasury Notes or Bonds representing the annual February maturity ladder across the yield curve.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.15% for this ETF, which makes it on par with most peer products in the space.
GOVI's 12-month trailing dividend yield is 3.66%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, United States Treasury Note/bond-1.50%-02-15-2030 (912828Z94) accounts for about 3.38% of total assets, followed by United States Treasury Note/bond-3.50%-02-15-2033 (91282CGM7) and United States Treasury Note/bond-5.38%-02-15-2031 (912810FP8).
The top 10 holdings account for about 33.65% of total assets under management.
Performance and Risk
The ETF has added roughly 0.43% so far this year and it's up approximately 1.35% in the last one year (as of 05/15/2025). In the past 52-week period, it has traded between $26.57 and $29.71.
GOVI has a beta of 0.31 and standard deviation of 9.62% for the trailing three-year period. With about 30 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Equal Weight 0-30 Year Treasury ETF is not a suitable option for investors seeking to outperform the Government Bond ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
SPDR Portfolio Long Term Treasury ETF (SPTL - Free Report) tracks Bloomberg Barclays Long U.S. Treasury Index and the iShares 20+ Year Treasury Bond ETF (TLT - Free Report) tracks ICE U.S. Treasury 20+ Year Bond Index. SPDR Portfolio Long Term Treasury ETF has $10.74 billion in assets, iShares 20+ Year Treasury Bond ETF has $46.23 billion. SPTL has an expense ratio of 0.03% and TLT charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Government Bond ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.