Vanguard Short-Term Treasury ETF (VGSH)

Overview

Product summary

  • This ETF offers exposure to short term government bonds, focusing on Treasury bonds that mature in one to three years
  • VGSH is a safe haven appeal as an asset that avoids both credit risk and interest rate risk
  • VGSH probably doesn’t have much appeal as a core holding, since the overlap with broad-based funds such as BND will be significant
  • This ETF can be a useful tool for tilting exposure towards Treasury bonds with a bias towards the shorter end of the maturity spectrum, decreasing the effective duration of a portfolio and minimizing overall volatility
  • Other options offering similar exposure include SHY and TUZ

Tags

  1. topic.investment

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