SPDR Bloomberg Short Term International Treasury Bond ETF

SPDR Bloomberg Short Term International Treasury Bond ETF (BWZ), from State Street, tracks an index of government bonds from investment-grade countries outside the US that mature in one to three years. The bonds are held in local currencies, such as the yen and the euro, so swings in the US dollar drive much of its return. Its 0.35% expense ratio matches its closest rival, ISHG, but is far above the 0.03% charged by some short-term US Treasury ETFs.

• Over the year to Oct 27, 2026, BWZ returned -0.7%, 7th of 8 among similar funds.
• Its 5-year annualized return was -1.3% and its 10-year -0.4%.
• In the 2020 COVID crash it fell 7.7% and regained its old high 4.1 months after the low.
• Its worst full calendar year was 2022 (-10.5%); its best was 2025 (+10.4%).
• The deepest fall in its price history was 34.2% (Aug 29, 2011 to Sep 27, 2022), not yet recovered.

As of Jun 30, 2026, the fund held 254 securities; the ten largest made up 11.84% of assets.

The bonds mature in 1.9 years on average (weighted by size), with an average coupon of 2.35%.

• Over the three months to Jun 30, 2026, investors withdrew a net $21.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +2.35%, -0.18%, -1.94%.

BWZ tracks the Bloomberg 1-3 Year Global Treasury ex-US Capped Index, which is run by Bloomberg Index Services. The index holds fixed-rate government bonds that investment-grade countries outside the US issue in their own currencies. Each bond has one to three years left until it matures. "Investment grade" here means a middle rating of BBB- (Baa3 at Moody's) or higher across Moody's, S&P and Fitch. Each country is weighted by the size of its bond market, and the index is updated on the last business day of each month. As of February 28, 2026, the index held about 310 bonds with an average maturity of 1.93 years.

The adviser, SSGA Funds Management, uses sampling. This means the fund does not have to buy every bond in the index. It can hold a smaller set with similar risk and return, as long as at least 80% of assets sit in index bonds or close equivalents. As of June 30, 2026, the fund held 254 bonds. Japan made up 22.75% of assets, followed by France at 5.62%. The largest single bond, issued by Belgium, was 1.74% of the fund.

The bonds are priced in local currencies. A stronger dollar cuts returns for US holders, and a weaker dollar adds to them. The fund may use forward currency contracts and futures, but it reported no derivative positions as of June 30, 2026.

• BWZ charges 0.35% a year, versus an average of 0.11% for the similar funds below (7th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $443 over 10 years (assuming a 5% annual return).

Its foreign-currency government bonds behave differently from US stocks and US bonds, but its price swings are too large for it to count as a defensive holding.

BWZ could add exposure to foreign currencies and non-US government debt, which most US bond funds lack. It has not been a calm holding. It fell 7.7% in March 2020 and recovered by July 22, 2020, about four months later. From January 13 to September 27, 2022, it fell 19.3%, and 2022 was its worst calendar year, at -11.07%. Its deepest drop was 34.2%, from August 2011 to September 2022, and it had not been recovered as of October 27, 2026. The fund launched in January 2009, so it has no full record through the 2008 crisis. Anyone who had to sell in a year like 2022 would have locked in losses.

The trailing 12-month yield was 2.1% as of October 27, 2026, and the fund pays monthly. Its 0.35% expense ratio compares with a 0.11% average among similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).