(VGSH) Vanguard Short-Term - Ratings and Ratios

The Vanguard Short-Term Treasury Index Fund ETF Shares (NASDAQ:VGSH) is designed to mirror the performance of the Bloomberg US Treasury 1-3 Year Index, comprising U.S. Treasury securities with maturities between 1 and 3 years, excluding inflation-protected, floating rate, and certain other securities. The fund maintains a minimum of 80% of its assets in bonds included in the tracked index, providing a low-risk investment option with a focus on short-term government securities.

As an ETF categorized under Short Government, VGSH offers investors a diversified portfolio of short-term U.S. Treasury securities. With a substantial Assets Under Management (AUM) of $22.455 billion USD, the fund demonstrates its popularity and scale in the market, potentially contributing to its liquidity and stability.

Analyzing the support and resistance levels, we observe that the fund has support levels at $58.3, $58.0, and $57.9. Given the current last price of $58.38, the fund is closely aligned with its short-term moving averages (SMA20 at $58.31 and SMA50 at $58.26), indicating a stable trend. The SMA200 at $57.45 suggests a longer-term uptrend, as the current price is significantly above this average.

Combining technical and fundamental data, we can forecast that VGSH is likely to continue its stable trend in the short term, potentially facing resistance around its 52-week high of $58.58. The Average True Range (ATR) of 0.09 (or 0.15%) indicates relatively low volatility, suggesting that the fund is not likely to experience significant price swings. Given the current interest rate environment and the funds focus on short-term Treasury securities, we can anticipate a continued stable performance, with potential for slight appreciation if interest rates remain steady or decrease. However, a rise in interest rates could negatively impact the funds performance due to the inverse relationship between interest rates and bond prices.

For investors seeking low-risk, short-term investment options with a high degree of liquidity, VGSH presents a viable choice, tracking a specific segment of the U.S. Treasury market. Its adherence to an indexing strategy and low expense ratio (not detailed but typical for Vanguard ETFs) makes it an attractive option for those looking to minimize costs and maximize returns within the constraints of short-term government securities.