VGSH: The Most Exciting Time Ever For This Boring ETF

Summary

  • Vanguard Short-Term Treasury ETF and other ETFs that focus on short-term Treasury securities are in a "golden era" of sorts.
  • The historically sharp spike in rates driven by the Fed this year have created the most exciting time to consider a perennially boring asset class.
  • The short end of the Treasury yield curve offers the best of both worlds: high yield and extremely low duration.
  • At a time when so many winning strategies of the past decade are at risk of failing, short-term Treasury investing is suddenly "exciting."
  • As with some others in its peer group, we rate VGSH a Buy.

Young Boy Nerd Saves Money in His Piggy Bank

RichVintage

By Rob Isbitts.

Summary

Vanguard Short-Term Treasury ETF (NASDAQ:VGSH) is part of a group of short-term Treasury Bond exchange-traded funds ("ETFs") that are about as exciting as that mundane asset class can get. The historically sharp spike in rates driven

This article was written by

I'm Rob Isbitts, founder of Sungarden Investment Publishing. I run the new investing group Sungarden Investors Club, a community dedicated to navigating the modern investment climate with humility, discipline, and a non-traditional approach to income investing. I've been charting investments since the 1980s, and I spent decades an an investment advisor and fund manager before semi-retiring in 2020. Now, this investing group is my focus. The markets tells us a story…we just have to listen! I teach subscribers how to do that.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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