VGSH: Boring, Safe, But Quietly Beating Other Income Investments

Aseity Research
713 Followers
(9min)

Summary

  • VGSH offers exposure to 1-3 year U.S. Treasuries with minimal volatility, a stable yield of 3.84%, and an ultra-low expense ratio of 0.03%.
  • Its risk profile is favorable due to its lower duration risk and stable trading range, making it a safer option in volatile markets.
  • VGSH is ideal for investors seeking safety and liquidity over high returns, and can serve as a tactical alternative to holding cash.
  • The ETF's positive real yields and potential for price appreciation make it a solid buy, especially as interest rates are likely to fall.

Money

DKart

The Vanguard Short-Term Treasury ETF (NASDAQ:VGSH) is a good pick for income investors. It gives exposure to 1-3 year U.S. treasures with minimal volatility and currently has a stable yield of around 3.84%. Most importantly, though, it has an ultra-low expense ratio

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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.

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About VGSH ETF

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