Streetbeat News

VGSH

Vanguard Short-Term Treasury Index Fund

http://www.vanguard.com

Industry

Asset Management - Leveraged

The fund employs an indexing investment approach designed to track the performance of the Bloomberg US Treasury 1-3 Year Index. This index includes fixed income securities issued by the U.S. Treasury (not including inflation-protected securities, floating rate securities and certain other security types), all with maturities between 1 and 3 years. At least 80% of the fund's assets will be invested in bonds included in the index.

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Peter Schiff, chief economist at Euro Pacific Capital, dismisses the hawkish pause on rates by the Federal Reserve and believes the next move will be a rate cut. Following the Fed's policy announcement, bond traders raised bets on a possible recession, causing the iShares 1-3 Year Treasury Bond ETF (SHY) and Vanguard Short-Term Treasury Index Fund ETF (VGSH) to decline.

Portfolio Pulse from Bhavik Nair

June 15, 2023 | 7:31 am

Bond traders are increasing bets on a potential US recession despite the Federal Reserve pausing its rate hike campaign. The yield curve inversion has steepened, with the two-year yield reaching 4.8% and the 10-year yield touching a low of 3.77%. The iShares 1-3 Year Treasury Bond ETF (SHY) and Vanguard Short-Term Treasury Index Fund ETF (VGSH) experienced losses.

Portfolio Pulse from Bhavik Nair

June 15, 2023 | 3:29 am

Ross Gerber, CEO of Gerber Kawasaki, believes inflation is dead and the Federal Reserve's rate hiking cycle will end. May's Consumer Price Index rose 4% annually, the lowest in two years. Wall Street reacted positively, with the Nasdaq Composite and S&P 500 gaining, while the bond market remains cautious.

Portfolio Pulse from Bhavik Nair

June 14, 2023 | 1:34 am

Hedge funds continue to short short-term Treasury Bills, suggesting the Federal Reserve's rate hiking cycle may not be over. Leveraged investors increased their net-short two-year Treasury positions for an eleventh straight week. The iShares 1-3 Year Treasury Bond ETF (SHY) and the Vanguard Short-Term Treasury Index Fund ETF (VGSH) both experienced losses during this period.

Portfolio Pulse from Bhavik Nair

June 12, 2023 | 7:28 am

Despite easing recession fears, major bond managers from Allianz and Fidelity maintain their forecasts for a downturn and advise hedging bets on risky assets. They believe the Federal Reserve's 10 consecutive rate hikes have already caused damage, and central banks' continued tightening is a concern. Bond ETFs IEF, SHY, and VGSH have experienced losses in the last month.

Portfolio Pulse from Bhavik Nair

June 12, 2023 | 1:22 am

Peter Schiff, chief economist at Euro Pacific Capital, warns investors that U.S. Treasuries will not provide a safe haven in current times. Treasury yields declined on Thursday, while iShares 1-3 Year Treasury Bond ETF (NASDAQ:SHY) and Vanguard Short-Term Treasury Index Fund ETF (NASDAQ:VGSH) gained. Schiff also commented on the gold rally, suggesting the recent correction is over.

Portfolio Pulse from Bhavik Nair

June 02, 2023 | 5:16 am

The US Senate has passed a bill to raise the debt ceiling, providing relief to the Treasury Department, which had been adopting daily maneuvers due to dwindling cash reserves. The iShares 1-3 Year Treasury Bond ETF (SHY) and Vanguard Short-Term Treasury Index Fund ETF (VGSH) have seen slight gains in the last five days.

Portfolio Pulse from Bhavik Nair

June 02, 2023 | 3:55 am

Otavio Costa, a portfolio manager at Crescat Capital, believes the US could have its own Bank of England moment as the Federal Reserve may have to buy Treasury Bills as a last resort due to a deluge of bonds expected to hit the market. The Treasury Department is expected to sell more than $1 trillion of debt papers through the end of Q3.

Portfolio Pulse from Bhavik Nair

May 30, 2023 | 8:00 am

President Biden and House Speaker Kevin McCarthy have reached a tentative deal on the debt ceiling, leading to an expected issuance of over $1 trillion of Treasury bonds by the end of Q3. This may cause short-term yields to rise, impacting households and businesses as banks increase lending rates.

Portfolio Pulse from Bhavik Nair

May 29, 2023 | 1:28 am

Economist Paul Krugman believes ratings agencies are irrelevant and is concerned about the potential implications of a US debt default. Fitch Ratings placed the US 'AAA' Long-Term Foreign-Currency Issuer Default Rating on Rating Watch Negative due to the debt ceiling crisis. Treasury yields have been affected, with the iShares 1-3 Year Treasury Bond ETF (SHY) and Vanguard Short-Term Treasury Index Fund ETF (VGSH) experiencing losses.

Portfolio Pulse from Bhavik Nair

May 26, 2023 | 4:29 am

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