GOVT — iShares US Treasury Bond ETF

iShares (BlackRock) · Expense Ratio: 0.05% · US Bonds · roughly average for its US Bonds category

Portfolio Hedge

Key Facts

TickerGOVT
Full NameiShares US Treasury Bond ETF
ProvideriShares (BlackRock)
Expense Ratio0.05%
CategoryUS Bonds
Assets Under Management$30B
Inception Year2012 (14 years ago)
Number of Holdings190
Dividend Yield~3.9% (high)
Top Holdings1-30yr Treasury

What Is GOVT?

GOVT, managed by iShares (BlackRock), launched in 2012, is a major ETF with deep liquidity and tight bid-ask spreads in the US Bonds category. US bond market ETF providing fixed income exposure to government and corporate bonds. With $30B in assets under management, it benefits from deep institutional liquidity and tight bid-ask spreads.

GOVT in a FIRE Portfolio

Bonds and inflation-protected securities act as portfolio ballast — reducing volatility and providing stability during the distribution phase for FIRE investors.

As a portfolio hedge:

Bonds stabilize your portfolio during stock market crashes. In a FIRE portfolio, a common allocation is 106% stocks / -6% bonds (the "106 minus your age" rule). Bond funds like GOVT provide the fixed-income portion of this allocation.

Cost Analysis: How GOVT's 0.05% Fee Affects Your FIRE Timeline

At 0.05%, GOVT is very cost-effective. Annual fees on a $100K investment: $50. Over 30 years, the fee drag shaves approximately 0.3% off your total returns. For a $1M FIRE portfolio, that's about $5,000 in cumulative fees — noticeable but reasonable for most investors.

Dividend Income Potential

With a high dividend yield of approximately 3.9%, here's what GOVT could generate in annual income at different portfolio sizes:

Portfolio Value Annual Dividend Income Monthly Income
$100,000 $3,900/year $325/month
$250,000 $9,750/year $813/month
$500,000 $19,500/year $1,625/month
$1,000,000 $39,000/year $3,250/month
This is a high-yield fund. A $1M position would generate $39,000/year — potentially covering a significant portion of your FIRE living expenses from dividends alone. However, high yields can sometimes signal higher risk or limited growth potential.

Frequently Asked Questions About GOVT

What is the expense ratio for GOVT?

GOVT has an expense ratio of 0.05%. This is very cost-effective — on a $100K portfolio, annual fees are $50. Roughly average for its us bonds category.

Is GOVT good for a FIRE portfolio?

Bonds and inflation-protected securities act as portfolio ballast — reducing volatility and providing stability during the distribution phase for FIRE investors. Its 0.05% expense ratio is very cost-effective for the US Bonds category.

How does the 0.05% fee affect long-term returns?

At 0.05%, you'll pay $50/year per $100K invested. Over 30 years, fees reduce total returns by approximately 0.3%. Use the embedded calculator below to model the exact impact on your specific portfolio.

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Calculate Your FIRE Number using GOVT

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