Defensive Ballast
Bond, cash, and commodity funds ranked on what they are actually bought for: low drawdown, low volatility, and low cost.
| Rank | Fund | 3M | 1Y | Vol | Max DD | vs 200d | ER | Score |
|---|---|---|---|---|---|---|---|---|
| #1 | ||||||||
| #2 | ||||||||
| #3 | AGG iShares Core US Aggregate Bond ETF | 1.2% | 3.0% | 3.8% | -2.8% | 0.0% | 0.03% | 0.380 |
| #4 | SHY iShares 1-3 Year Treasury Bond ETF | 0.9% | 2.9% | 1.3% | -0.9% | 0.9% | 0.15% | 0.301 |
| #5 | TIP iShares TIPS Bond ETF | 0.5% | 2.7% | 3.3% | -2.0% | 0.4% | 0.18% | 0.214 |
| #6 | LQD iShares iBoxx Inv Grade Corp Bond ETF | 0.6% | 1.8% | 5.3% | -3.3% | -0.8% | 0.14% | 0.200 |
| #7 | IEF iShares 7-10 Year Treasury Bond ETF | 1.3% | 2.0% | 4.6% | -4.1% | -0.5% | 0.15% | 0.186 |
| #8 | TLT iShares 20+ Year Treasury Bond ETF | 1.2% | 0.8% | 9.4% | -8.4% | -2.5% | 0.15% | 0.026 |
| #9 | HYG iShares iBoxx High Yield Corp Bond ETF | 1.9% | 5.1% | 3.9% | -2.3% | 1.7% | 0.49% | -0.151 |
| #10 | IAU iShares Gold Trust | 0.6% | 35.0% | 28.6% | -26.4% | 0.3% | 0.25% | -0.316 |
What the screen did this week
The Defensive Ballast screen ranked 12 eligible funds as of 2026-08-19. Bond, cash, and commodity funds ranked on what they are actually bought for: low drawdown, low volatility, and low cost.
The composite is a weighted blend of cross-sectional z-scores: 1-year max drawdown (30%, higher better); 1-year volatility (25%, lower better); 1-year return (25%, higher better); expense ratio (20%, lower better). Every fund is scored against the others in its universe on the same date, so a score is a statement about relative standing that week — not a forecast.
The visible ranking
#3 AGG — iShares Core US Aggregate Bond ETF. 3-month 1.2%, 1-year 3.0%, volatility 3.8%, worst drawdown -2.8%, expense ratio 0.03%. Composite 0.380.
#4 SHY — iShares 1-3 Year Treasury Bond ETF. 3-month 0.9%, 1-year 2.9%, volatility 1.3%, worst drawdown -0.9%, expense ratio 0.15%. Composite 0.301.
#5 TIP — iShares TIPS Bond ETF. 3-month 0.5%, 1-year 2.7%, volatility 3.3%, worst drawdown -2.0%, expense ratio 0.18%. Composite 0.214.
#6 LQD — iShares iBoxx Inv Grade Corp Bond ETF. 3-month 0.6%, 1-year 1.8%, volatility 5.3%, worst drawdown -3.3%, expense ratio 0.14%. Composite 0.200.
#7 IEF — iShares 7-10 Year Treasury Bond ETF. 3-month 1.3%, 1-year 2.0%, volatility 4.6%, worst drawdown -4.1%, expense ratio 0.15%. Composite 0.186.
#8 TLT — iShares 20+ Year Treasury Bond ETF. 3-month 1.2%, 1-year 0.8%, volatility 9.4%, worst drawdown -8.4%, expense ratio 0.15%. Composite 0.026.
#9 HYG — iShares iBoxx High Yield Corp Bond ETF. 3-month 1.9%, 1-year 5.1%, volatility 3.9%, worst drawdown -2.3%, expense ratio 0.49%. Composite -0.151.
#10 IAU — iShares Gold Trust. 3-month 0.6%, 1-year 35.0%, volatility 28.6%, worst drawdown -26.4%, expense ratio 0.25%. Composite -0.316.
What changed since last week
This is the first published run of this screen, so there is nothing to compare against yet. Movement commentary starts next week.
What moved the numbers
At rank 3, AGG scored 0.380. Its largest single contribution came from expense ratio, and its biggest drag from 1-year return. At the other end, SLV finished last of 12 with a composite of -1.134.
Every fund in the universe cleared the gates this week.
How to read this
This is a rules-based screen published on a fixed schedule. It is the same for every reader, it is not tailored to anyone’s circumstances, and it is not a recommendation to buy or sell. Rankings are computed from price history alone. Past performance does not predict future results.
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