Short-Duration Bond ETFs

The Latest News:

  • “Many investors are concerned with duration risk in long-term treasuries and other fixed-income vehicles” Andy O’Rourke, a managing director with Direxion, said in a Financial Magazine article. “The natural reaction is to take an even more conservative approach and seek shelter with short-term, fixed-income vehicles.”
  • The coupon rate on five-year Treasury bonds fell 200 basis points from its previous auction to 2.125% Tuesday, reports Ronnel W. Domingo for Inquirer Business.
  • 5-year Treasuries currently have a yield of 0.82%.
  • “The Treasury market is cheaper than almost any other comparable market on a relative value basis,” Jim Vogel, an interest-rate strategist at FTN, said in a Bloomberg article. “There is the thought out there that Treasuries are expensive when in reality they offer the most value given the improving economy and the relative real yield they offer compared to others.”

Vanguard Short-Term Bond ETF

For past stories in this series, visit our ETF Spotlight category.

Max Chen contributed to this article.

Full disclosure: Tom Lydon’s clients own BSV.