VCSH: Hedging Equities With Corporate Investment-Grade Debt

  • Vanguard Short-Term Corporate Bond Index Fund ETF offers a stable investment with a 4.73% yield, balancing risk through investment-grade corporate debt with an average duration of 2.6 years. Despite low growth in AUM, VCSH's low expense ratio and strong corporate creditworthiness make it a compelling alternative to treasury bonds. Corporate profits and cash reserves are strong, suggesting that investment-grade corporate debt remains relatively risk-free, unless faced with prolonged economic contraction.