BSV - Vanguard Short-Term Bond ETF's High Exposure To U.S. Treasuries Is Not Advantageous
ETF Overview
Vanguard Short-Term Bond ETF's (BSV) focus on investment-grade corporate bonds and U.S. treasuries makes it an attractive choice for investors seeking funds with low credit risk. Its interest rate risk is also low due to its short average duration to maturity years. However, BSV's higher exposure to U.S. treasuries makes it a less appealing choice for investors seeking yield. Therefore, we recommend investors to find ETFs with higher exposure to investment-grade corporate bonds, especially given the fact that the Federal Reserve is now also buying these bonds.
Data by YCharts