iShares Intermediate Government/Credit Bond ETF

GVI

Market cap $3.73B

Short-term investment-grade bond strategies, with durations in the two-to-three-year range, are well positioned to capture a meaningful yield advantage without the rate sensitivity that has challenged longer duration strategies in recent months. The yield to worst on a diversified short-term bond portfolio currently sits between 4.5% and 5.0%, more than 100 basis points above what bank savings accounts and government money market funds are currently yielding. Although the path for rates is highly uncertain, the range of outcomes in which short-term bonds outperform cash is considerably wider than the range in which they don't.

Two renowned Wall Street firms, Morgan Stanley and JPMorgan, are advising investors to consider purchasing five-year U.S. Treasury notes, per Bloomberg, as quoted on Yahoo Finance.