How to perform “Flight to Quality” through Avenue

As stated in the Investment Thesis tab, the bond that the world sometimes seeks in times of uncertainty is the preservation of its capital through US debt securities, especially short-term ones – those with maturities of up to one year.

How much to allocate and investment term

This is an investment for those looking to maintain the capital invested in a time of uncertainty. Given that the focus of this investment is not profitability, but rather the maintenance of the capital invested, the investment term goes until the moment that the investor feels comfortable to look for more profitable alternatives.

An example of a short-term investment is the iShares Short Treasury ETF.

^{This is not a recommendation for you to invest in this ETF. You can choose from the many options offered by Avenue to suit your financial situation, investment objectives and risk tolerance.}

Description

SHV offers exposure to US government debt securities with short-term maturities, that is, between one and twelve months.

Portfolio composition

The fund has a mix of different bonds, but all of them respecting the policy of short maturities, which is up to 12 months. Currently, about 10% of the fund’s resources are invested in cash and the rest divided between US government T-Notes and T-Bills.

Total invested

About $20 billion.

Learn more at: iShares Short Treasury Bond ETF