Fund Evaluator:
GMO US Treasury (GUSTX)
Follow This Fund
Best Performing in Short Government Over the Last Year
| 3.3% | Vanguard Short-Term Federal Adm (VSGDX) |
| 3.2% | Vanguard Short-Term Federal Inv (VSGBX) |
| 3.1% | Vanguard Short-Term Treasury Idx Admiral (VSBSX) |
| 3.0% | Vanguard Short-Term Treasury Adm (VFIRX) |
| 2.9% | Vanguard Short-Term Treasury Inv (VFISX) |
Fund Details
GMO US Treasury Overview
GMO US Treasury (GUSTX) is an actively managed Taxable Bond Short Government fund. GMO launched the fund in 2009.
The investment seeks liquidity and safety of principal; current income as a secondary objective. Under normal circumstances, the fund invests at least 80% of its assets in Direct U.S. Treasury Obligations and repurchase agreements collateralized by these Obligations. "Direct U.S. Treasury Obligations" include U.S. Treasury bills, bonds and notes and other securities issued by the U.S. Treasury, as well as Separately Traded Registered Interest and Principal Securities (STRIPS) and other zero-coupon securities. GMO normally seeks to maintain an estimated interest rate duration of one year or less for the fund's portfolio.
About GMO US Treasury (GUSTX)
There are 2 members of the management team with an average tenure of 4.59 years: Tracey Keenan (2017), Paul Tagliaferri (2026). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and FTSE Treasury Bill 3 Mon USD index with a weighting of 100%. GMO US Treasury has 25 securities in its portfolio. The top 10 holdings constitute 52.7% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
GMO US Treasury is part of the Fixed Income global asset class and is within the Taxable Bond fund group. GMO US Treasury has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 71.1% (71.1% domestic bond, 0.0% foreign bond and 0.0% convertible bond). GMO US Treasury has 28.6% of the portfolio in cash.
Assets Under Management
The fund has $380 million in total assets, which is below the $437 million average for the Short Government category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
GUSTX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The GMO US Treasury expense ratio is low compared to funds in the Short Government category. GMO US Treasury has an expense ratio of 0.09%, which is 86% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. A portfolio turnover rate cannot be currently calculated for GMO US Treasury. By way of comparison, the average portfolio turnover is 217% for the Short Government category.
Recently, in the month of July 2026, GMO US Treasury returned 0.3%, which earned it a grade of A, as the Short Government category had an average return of -0.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
GMO US Treasury has a trailing yield of 3.81%, which is below the 3.82% category average. The fund normally distributes its income monthly and its capital gains semi-annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
GMO US Treasury Grades
Year to date, the fund has returned 1.9%, 1.4 percentage points better than the category, which translates into a grade of A. The fund has returned 3.7% over the past year (grade of A), 4.6% over the past three years (grade of A) and 3.5% per year over the past five years (grade of A) and 2.4% per year over the past 10 years (grade of A).
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GUSTX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| GUSTX Return (NAV) | 0.3% | 0.8% | 3.7% | 4.6% | 3.5% | 2.4% |
| GUSTX Grade | A | A | A | A | A | A |
| +/- Category | 0.4% | 0.7% | 0.7% | 0.4% | 2.0% | 1.0% |
| Short Government Avg | -0.1% | 0.1% | 2.9% | 4.2% | 1.5% | 1.5% |
| GUSTX Tax Cost Ratio | na | na | 1.5% | 1.8% | 1.5% | 1.0% |
GUSTX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| GUSTX Return (NAV) | 1.9% | 4.4% | 5.2% | 5.6% | 0.8% | -0.0% | 1.3% | 2.2% | 2.1% | 0.9% | 0.5% |
| GUSTX Grade | A | F | A | A | A | A | F | F | A | A | D |
| +/- Category | 1.4% | -1.0% | 1.3% | 1.6% | 5.6% | 1.1% | -1.9% | -1.0% | 0.9% | 0.4% | -0.2% |
| Short Government Avg | 0.6% | 5.4% | 3.8% | 4.0% | -4.9% | -1.1% | 3.2% | 3.2% | 1.1% | 0.5% | 0.7% |
| Risk Measures | |
| Standard Deviation: | 0.3% |
| Total Risk Index: | 0.03 - Low |
| Category Risk Index: | 0.17 - Low |
| Category Risk Grade: | A (2% Rank) |
| Beta: | 0.00 |
| R-Squared: | 0% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 3.8% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Semi-Annually |
| Total Assets: | $380 Mil |
| Fund Total Assets: | $ 381 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 0% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 9.1 years | |||
| Average Tenure: 4.6 years | |||
| Managers (Year): Keenan Tracey (2017), Tagliaferri Paul (2026) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 25 |
| % in Top 10 Holdings: | 52.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 71.1% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.4% |
| Cash: | 28.6% |
Purchase Information
| Fund Family: | GMO |
| Phone Number: | 617-346-7646 |
| Website: | www.gmo.com |
| Status: | Open |
| Inception Date: | March 17, 2009 |
| Min. Initial Purchase: | $1,000,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.09% ( Rating : Low ) |
| Category Average Expense Ratio (%): | 0.64% |
| Share Class: | GMO US Treasury |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
