iShares Lehman 1-3 Year Treasury Bond (SHY)

All Comments on SHY

  • commenter
    Johnny
    Bitchdog
    May 14 10:50 PM
    Questioning The Value of Bond ETFs [view article]
    Good questions.

    Morningstar's cautionary statements do not look like good, objective information.

    Look's like a corrupt and deceptive attempt to aid actively managed bond funds.

    If the author had made some kind of argument that, on average, actively managed funds did beat the passive index by more than the .10 percent expense savings, it might have been valuable.

    the simple fact is that the actively managed bond funds may underperform or outperform and the investor takes that risk. just because a small percent of managers have good long term records does not address the proper question.

    Morningstar wants as much complexity as possible so they can sell their b.s., while not pissing off any major customers........take what they say with a grain of salt.

    it does look like the ETF benefits are stronger for equity funds, but bond funds seem advantageous as well.

    also, there is cash drag for traditional mutual funds which must stand ready to meet redemptions.

    looks like Morninstar b.s. or incompetent analysis to me.
    john.     Reply
  • commenter
    esweb
    May 10 10:56 AM
    Questioning The Value of Bond ETFs [view article]
    I'm no financial professional, but doesn't this mean that ~90% of distinct funds did NOT produce higher 10-year-gains?! And, don't we also need to define "top" a little more? It could mean 0.000001% for all we know.

    From what I recall, roughly 80% of managers can't beat the S&P 500. That would indicate that the stock pickers are MORE successful than the intermediate-term bond-fund category pickers. No?

    I'm a small investor looking to add to my bond holdings, easily. It would still seem that AGG or BND still make sense for this purpose. No minimum purchase and I can get in or out whenever I choose.

    Thoughts?     Reply
  • commenter
    Sol
    Rosenberg
    May 06 09:43 PM
    Bond ETFs vs. Money Market Funds For Short-Term Cash [view article]
    c meng, SHY is not equivalent to a money market fund in terms of interest rate risk. According to etfconnect.com, SHY has an average weighted maturity of 1.87 years. Compare that to money market funds, which typically have average weighted maturities of 30-90 days. Reply
  • commenter
    David
    Jackson
    May 01 03:44 AM
    My Website
    US Government Bond ETFs [view article]
    Have we missed out any ETFs here? Or any Seeking Alpha articles that are important to understanding them? If so, please leave a comment and let us know! Reply
  • commenter
    Richard Kang
    Apr 28 09:33 AM
    My Website
    Why I'm Against Fixed Income ETFs [view article]
    DJ & DS: Quick note here. Just had a baby girl late Thursday and got back home now. By chance, checked out SA site. But to make things simple, please put comments/questions on my blog at thebetabrief.com so I can have all inquiries at one place. Sorry for quick get away but there's literally a scream beside me. Thanks. Reply
  • commenter
    dma
    Apr 26 07:30 AM
    Why I'm Against Fixed Income ETFs [view article]
    Richard

    For individual investors, there seems to be no effective way to access either the "absolute return" or "private equity" categories you rightly point out as being a huge part of the success of the large endowment investors. That leaves us with cash, stocks, bonds, and real assets (mostly REITs, possibly some commodity plays). Within that restricted universe, bonds could easily end being 10-20% of the portfolio simply for diversification.     Reply
  • commenter
    David
    Jackson
    Apr 26 05:53 AM
    My Website
    Why I'm Against Fixed Income ETFs [view article]
    Excellent article, Richard.

    But what about the iShares Lehman Short Treasury Bond Fund (SHV)? Isn't it just a very convenient and cheap way to buy short term Treasury notes that would actually make sense for a lot of people?     Reply
  • commenter
    Augustus
    Apr 23 03:27 PM
    Bond ETFs vs. Money Market Funds For Short-Term Cash [view article]
    Depending upon the trading costs, SHY offers a great place to park the money. Increasing interest rates will have just about the same effect on the value of the MMF assets as on the holdings of SHY. With an account at FolioFn, I have about zero trading costs for an additional trade. Just buy the SHY. Value is computed daily to include the accrued interest and this one trades very very near the NAV. Reply
  • commenter
    steinie
    Apr 17 03:16 PM
    My Website
    Replacing Barclays iShares Bond ETFs With Vanguard's New Bond ETFs [view article]
    David,

    Short term rates would have to move up nearly a point before the break-even analysis on this turns negative on the Vanguard fund, which has only a half year's additional duration. I don't think short-term rates are going to move up that much and may very well start coming down in the second half of the year, which would add an additional element of return potentially to the slightly longer-duration Vanguard fund.

    J.D.     Reply
  • commenter
    David
    Jackson
    Apr 17 01:13 PM
    My Website
    Replacing Barclays iShares Bond ETFs With Vanguard's New Bond ETFs [view article]
    Thanks J.D. -- really helpful. How do you assess whether an extra 0.3% income is worth the increased risk of an extra year's duration?
    David     Reply
  • commenter
    steinie
    Apr 17 11:35 AM
    My Website
    Replacing Barclays iShares Bond ETFs With Vanguard's New Bond ETFs [view article]
    David,

    I think yield to maturity is a bit fuzzier inside a bond fund as opposed to an individual bond that an investor plans to actually hold to maturity, so I also look at the monthly distribution and determine what that implies on a current cash on cash yield basis. For SHY, this figure is approximately 4.45% (surprisingly low) and for BSV (using VBIRX, the underlying Vanguard fund, as a proxy) the yield is 4.75%, so yes, I do think the extra half-year of duration risk is worth it.

    J.D.     Reply
  • commenter
    David
    Jackson
    Apr 17 10:17 AM
    My Website
    Replacing Barclays iShares Bond ETFs With Vanguard's New Bond ETFs [view article]
    J.D, Thanks for a good article.

    According to the info on Barclay's website, SHY has a weighted average maturity of 1.87 years and an average yield to maturity of 4.8%. In the article you said that BSV has a weighted average maturity of 2.7 years and an average yield to maturity of 4.8%.

    Do you think the extra risk of the longer average maturity is worth it, given the identical average yields to maturity?     Reply
  • commenter
    Roger
    Nusbaum
    Mar 27 02:05 PM
    My Website
    Critique of an Overly Broad ETF Portfolio [view article]
    i write quite a few posts between here, my blog and TheStreet.com that does just that. Reply
  • commenter
    sdrone
    Mar 27 11:58 AM
    Critique of an Overly Broad ETF Portfolio [view article]
    I'm a little late here, but why not add an investment idea or 2 instead of just noting criticism? That way people like me could learn from your critique.

    Yeah, it looks like a starter portfolio. On the other hand, it looks, in general terms, like a well diversified portfolio. It has various equity capitalizations, international stocks, and even a significant REIT portion to go along with plenty of bonds (too much bonds for my taste). The only thing it might lack is a small percentage in come type of commodity ETF.     Reply
  • commenter
    Roger
    Nusbaum
    Mar 26 12:42 PM
    My Website
    Critique of an Overly Broad ETF Portfolio [view article]
    disagreement is always welcome so in that light the portfolio being a starter? It strikes me as being very similar to almost every other ETF portfolio put forth. Reply
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