The U.S. Treasury bill index is based on one-month Treasury bill returns. Return figures for the indices do not reflect any fees or expenses. Please note that U.S. government bonds and U.S. Treasury bills are backed by the full faith and credit of the U.S. government, are less volatile than equity investments and provide a guaranteed return of principal at maturity. The information in the chart above is not intended to imply the future performance of any of the investments mentioned. Past performance is no guarantee of future results.
Stocks generally have greater return potential than bonds, but the risk is higher.
Short-term investments whose safety is guaranteed by the government, like Treasury Bills, are considered less risky. Unfortunately, they usually have a lower rate of return than other investments. You also run the risk of locking yourself into lower-yielding investments just before interest rates rise. Your investment plan should be consistent with your comfort level with risk. A very conservative investor, looking for safety, might have invested entirely in U.S. Treasury bills, while a more aggressive investor, looking for high returns, might have invested entirely in stocks.