Vanguard Short-Term Treasury ETF

VGSH

Market cap $29.2B

The Fed has indicated that rate cuts are unlikely in 2026. That means investors should be careful about investing in longer-term bonds.

The Vanguard Short-Term Treasury ETF (VGSH) offers a higher dividend yield and lower expense ratio than the Vanguard Short-Term Tax-Exempt Bond ETF (VTES). Vanguard Short-Term Tax-Exempt Bond ETF (VTES) provides interest income that is generally exempt from federal income taxes.

iShares 1-5 Year Investment Grade Corporate Bond ETF provides a higher trailing-12-month dividend yield but carries greater price volatility than Vanguard Short-Term Treasury ETF. Vanguard Short-Term Treasury ETF offers slightly lower ownership costs and a significantly shallower maximum drawdown over the last five years.

The Vanguard Long-Term Bond ETF (NYSEARCA:BLV) is the kind of fund retirees gravitate toward: a long-duration, investment-grade bond index ETF that has paid a monthly distribution for 230 consecutive months since May 2007.

Vanguard Short-Term Corporate Bond ETF provides a higher dividend yield and stronger 1-year total return compared to Vanguard Short-Term Treasury ETF. Vanguard Short-Term Treasury ETF exhibits significantly lower price volatility and a shallower maximum drawdown due to its focus on U.S. government debt.

For decades, the playbook for high-income investors was almost reflexive: put municipal bonds in your taxable account, put Treasuries and corporates in your IRA.

President Donald Trump's room to wage war while maneuvering on economic policy is being tested by a force largely beyond his control: the bond market.

Anna Edwards, Guy Johnson, Tom Mackenzie and Mark Cudmore break down today's key themes for analysts and investors on "Bloomberg: The Opening Trade." Chapters: 00:00:00 - MLIV 00:00:01 - Bond Market Selloffs, Inflation Concerns 00:01:44 - Buy the Dip?

Geopolitical risks and rate outlook boost appeal of short-term U.S. Treasury ETFs as investors seek stability amid volatile equity and oil markets.

Your retirement check is about to get squeezed by a Fed civil war you did not vote for.