Vanguard Short-Term Treasury Index Fund ETF Shares Company profile
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. This ETF offers exposure to short term government bonds, focusing on Treasury bonds that mature in one to three years. As such, interest rate exposure for this product will be towards the low end, giving VGSH safe haven appeal as an asset that avoids both credit risk and interest rate risk. But this ETF can be a useful tool for tilting exposure towards Treasury bonds with a bias towards the shorter end of the maturity spectrum, decreasing the effective duration of a portfolio and minimizing overall volatility.
January’s US Non-Farm Payrolls are forecast to show a 169K job increase, with unemployment steady at 4.1%. Wage growth may ease, influencing Fed policy and market expectations.