The defensive ETF looks oversold with its 14-day Relative Strength Index (RSI), a momentum indicator, at its lowest level since February, the technical analyst wrote in a newsletter Monday.
“The iShares Barclays 1-3 Year Treasury Bond is one of the least risky investments that can be made. Given the short duration and low yields, we view this as a substitute for a cash account or CD at a bank,” Morningstar says in a profile of the ETF.
iShares Barclays 1-3 Year Treasury Bond
Full disclosure: Tom Lydon’s clients own SHY.