G0d4ather
When I mention VGLT as an opportunity in conversations with fellow analysts and advisors in my research work for banks and financial networks, the response I hear more and more often is:
“Right now? But don’t you see what’s
Recession Risk Ruled Out? That Makes VGLT More Attractive.
Summary
- VGLT offers lower fees compared to TLT, making it an attractive long-term bond solution, especially after the February fee cut.
- During the last year of trading, betting on rate cut expectations would have led to negative real returns on VGLT.
- Short-term maturities, on the other hand, generated alpha, especially after the recent dump of 20+ year Treasuries.
- But the GDP contraction for the quarter may not signal an upcoming recession, and current economic data seems to support this hypothesis.
- The focus shifts to interest rates and the risk of excessive debt burden, both public and private.
Financial Serenity is a financial analysis and quantitative research column with a particular focus on the asset management sector. It is actively managed by Tommaso Scarpellini, a seasoned financial researcher and data analyst with proven experience in banking and financial analytics platforms. This initiative aims to provide an in-depth analysis of the dynamics driving the asset management market. On Seeking Alpha, we combine insights from rigorous data analysis with actionable opinions and ratings on ETFs and other trending instruments in the asset management space. Our mission is to deliver valuable, data-driven perspectives to help investors make informed decisions in this ever-evolving market.
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