NYCB - VCSH: This Bond Fund Looks Attractive
2024-02-08 23:54:51 ET
Summary
- Vanguard Short-Term Corporate Bond ETF is a fixed-income ETF with $42.8 billion in AUM and a low volatility profile.
- The fund is overweight A and BBB corporate bonds and provides exposure to the short-term investment-grade U.S. corporate bond market.
- The predicted 12-month return for VCSH is 6%, with a potential drawdown of -1.6% from credit spreads widening.
- The vehicle is correctly set up for today's environment from a duration standpoint and has a very granular composition.
Thesis
Vanguard Short-Term Corporate Bond ETF ( VCSH ) is a fixed-income exchange-traded fund. The fund is an investment-grade corporate bond vehicle, being overweight A and BBB corporate names. With assets under management exceeding $42 billion, the fund is a cornerstone of many portfolios, providing with rates and credit spread exposure for the front end of the curve....
VCSH: This Bond Fund Looks Attractive