1-Star ETFs Poised to Plunge: iShares S&P/Citigroup 1-3 Year International Treasury Bond?

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Click Here Now

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares S&P/Citigroup 1-3 Year International Treasury Bond Fund (Nasdaq: ISHG ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at ISHG, and see what CAPS investors are saying about the ETF right now.

ISHG facts

Inception	January 2009
Total Net Assets	$186.6 million
Investment Approach	Seeks investment results that correspond to the S&P/Citigroup International Treasury Bond Index Ex-US 1-3 Year. The index is designed to measure the performance of treasury bonds issued in local currencies by developed market countries outside the U.S. that have a remaining maturity of greater than one year and less than or equal to three years.
Expense Ratio	0.35%
Dividend Yield	3.5%
Year-to-Date / 1-Year / 3-Year Returns	3.1% / (1.5%) / (0.7%)
Alternatives	SPDR Barclays Capital International Treasury Bond (NYSE: BWX ) SPDR DB International Government Inflation-Protected Bond (NYSE: WIP )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 55% of the 31 members who have rated ISHG believe the ETF will underperform the S&P 500 going forward.

This past summer, one of those Fools, All-Star TerryHogan, succinctly summed up the ISHG bear case for our community:

With yields as low as they are, we won't be looking at much capital appreciation, if any. So basically, you're looking for a 1 to 3% yield to beat the S&P? Not going to happen in the long term, the dividend yield on the S&P will beat this thing by itself.

If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, our special report on ETFs highlights three funds that are poised to soar in the next recovery. It's 100% free, but won't last forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Jeff Fischer and team have demystified options. And they can rack up income like $1,030... $2,626... and $3,228 on a schedule you can set your watch by!
That's why we're glad to announce every single one of their closely guarded strategies is available to YOU during May and June – 100% FREE, no strings attached! Just enter your email address in the box below...

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.