Short-government portfolios have at least 90% of their bond holdings in bonds backed by the U.S. government or by government-linked agencies. This backing minimizes the credit risk of these portfolios, as the U.S. government is unlikely to default on its debt. These portfolios have durations between one and 3.5 years (or, if duration is unavailable, average effective maturities between one and four years), so they have relatively less sensitivity to interest rates, and thus low risk potential.
Abbreviation: GS
Broad Asset Class: Taxable Bond
Primary Index: Barclays Aggregate Bond
Secondary Index: Barclays 1-5 Year Government