Larry Berman CFA, CMT, CTA
Vanguard Short-Term Corporate Bond ETF
VCSH-Q
DON'T BUY
Nov 12, 2018
He likes it. He has used it in the past. One to three year corporate bonds. He has moved all his short term corporate bonds into floating rate notes, which will do better.
Are the bonds of investment grade? This is a short-term corporate bond fund with some potential exposure to corporate credit duress. There is also interest rate exposure. If you need this to be rock solid, you might want to move to a government bond yield instead.
Hard to be a long-term bond investor with long-term yields so low, because with any inflation several years from now, you're going to get caught with bonds that are down sharply. Yet with short-term, you're giving up yield, but also immunizing yourself against losses. You're not getting paid to own long-term bonds. He'd rather have short-term bonds with some yield.
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