Traders Sidestep ‘Rate Freight Train’ With Short-Dated Bond ETFs
- VGSH, SCHO post record weekly inflows despite rate reprieve
- Short-interest on TLT remains near highest level since 2017
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The surge in Treasury yields has cooled down, but exchange-traded funds tracking the bond market are showing tensions might be building under the surface.
Investors put $2 billion into the Vanguard Short-Term Treasury ETF (ticker VGSH) and about $660 million into the Schwab Short-Term U.S. Treasury ETF (ticker SCHO) last week -- a record for both funds, according to data compiled by Bloomberg. Meanwhile, traders rushed out of the iShares 20+ Year Treasury Bond ETF (ticker TLT), which tracks longer-dated debt and bled nearly $1 billion in the span.