The short interest in the Vanguard Intermediate-Term Treasury ETF (NASDAQ: VGIT) experienced a significant increase of 58.8% in September. As of September 30, 2023, the total short interest reached 1,150,000 shares, up from 724,200 shares recorded on September 15, 2023. With an average daily trading volume of 2,333,900 shares, the current short-interest ratio stands at 0.5 days, indicating a notable shift in market sentiment.
Institutional Investment Activity
Institutional investors have been active in the Vanguard Intermediate-Term Treasury ETF recently, reflecting growing interest. Trust Co. of Toledo NA acquired a new stake in the ETF valued at approximately $25,000 during the second quarter.
Meanwhile, Nemes Rush Group LLC made a significant move by increasing its stake by 703.1% during the same period. The firm now holds 514 shares valued at around $31,000 after purchasing an additional 450 shares. Fifth Third Bancorp also entered the market, acquiring a new stake valued at $34,000.
True Wealth Design LLC reported a 65.5% increase in its stake, now owning 576 shares valued at $34,000 after acquiring 228 more shares. Additionally, Financial Gravity Companies Inc. added a new stake valued at $35,000, underscoring the growing institutional interest in this ETF.
Price Performance and Market Context
As of Thursday, shares of VGIT opened at $60.54. The ETF shows a 50-day simple moving average of $60.07 and a 200-day simple moving average of $59.53. Over the past year, VGIT has fluctuated significantly, reaching a low of $57.40 and a high of $60.57.
The Vanguard Intermediate-Term Treasury ETF aims to track the performance of a market-weighted government bond index with an intermediate-term, dollar-weighted average maturity. Its passive management strategy is designed to align closely with the performance of the Barclays Capital U.S. Government Bond Index, making it a preferred choice for investors seeking stability in the current market environment.
In summary, the substantial rise in short interest for the Vanguard Intermediate-Term Treasury ETF, combined with increasing institutional investments, reflects a dynamic shift in investor sentiment and market activity. As the market continues to evolve, these developments warrant close attention from both investors and analysts alike.
