July 23, 2024

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Vanguard Ultra-Short Bond ETF launched today

The newest addition to our mounted revenue ETF (trade-traded fund) lineup is now available. Vanguard Extremely-Short Bond ETF (VUSB) is developed to be a lower-value possibility for investors with anticipated funds needs inside 6 to eighteen months.

If you’re conserving for a small-term purpose or setting up your emergency fund, Vanguard Extremely-Short Bond ETF delivers an financial investment substitute to cash marketplaces or small-term bonds.

Put your savings to operate

No matter whether you’re conserving for a motor vehicle or a holiday vacation or socking away cash for a wet working day, our new Vanguard Extremely-Short Bond ETF offers perhaps better returns on your funds whilst preserving your possibility lower.

“Vanguard Extremely-Short Bond ETF offers the functions of an ETF construction for investors in search of an possibility for anticipated funds needs in the range of 6 to eighteen months,” stated Kaitlyn Caughlin, head of Vanguard Portfolio Review Division. “An extremely-small technique bridges the hole concerning cash marketplace money offering a stable share price tag and small-term bond money, which are intended for more time financial investment time horizons.”

A nearer glimpse at our new ETF

The Extremely-Short Bond ETF is a lower-value, diversified, actively managed fund that:

  • Seeks to provide recent revenue and restricted price tag volatility.
  • Has a related technique to Vanguard Extremely-Short-Phrase Bond Fund, and targets the exact ordinary duration—approximately one year.
  • Has a competitive believed price ratio of .10%, when compared with the ordinary price ratio for extremely-small-term bond ETFs of .22%.*
  • Is suggested by Vanguard Fixed Income Group, one particular of the world’s biggest mounted revenue supervisors with oversight of $two trillion in world wide property as of February 28, 2021.
  • Is co-managed by Samuel C. Martinez, CFA Arvind Narayanan, CFA and Daniel Shaykevich.
    • Samuel has worked in financial investment administration due to the fact 2010.
    • Arvind has worked in financial investment administration due to the fact 2002 and joined Vanguard in 2019.
    • Daniel, a Vanguard principal, has worked in financial investment administration due to the fact 2001 and joined Vanguard in 2013.

How this ETF compares to cash marketplace money and small-term bond money

Extremely-small-term bond money usually offer a better generate than cash marketplace money, financial institution products, and CDs (certificates of deposit). Nonetheless, for the reason that extremely-small-term bond products have fluctuating share price ranges, they shouldn’t be considered as a substitute for cash marketplace money, which historically have aimed to maintain a stable share price tag of $one.

The Extremely-Short Bond ETF is anticipated to have lower volatility than small-term bond products, which tend to be extra delicate to interest charge alterations for the reason that of their more time-term bond holdings.

Vanguard has provided ETFs due to the fact 2001. With the addition of our new ETF, Vanguard now offers twenty U.S.-domiciled mounted revenue ETFs representing extra than $300 billion in consumer property.**

Saving for a small-term purpose?

*Resource: Normal price ratios for extremely-small-term bond investments are .45% for mutual money and .22% for ETFs, or a put together ordinary of .forty three%, as of February 28, 2021, in accordance to Lipper, a Thomson Reuters Enterprise.

**Assets beneath administration were being $309.8 billion as of February 28, 2021.


For extra info about Vanguard money or Vanguard ETFs, check out investor.vanguard.com to get hold of a prospectus or, if available, a summary prospectus. Investment objectives, threats, costs, fees, and other vital info about a fund are contained in the prospectus examine and take into account it diligently before investing.

You ought to purchase and promote Vanguard ETF Shares as a result of Vanguard Brokerage Companies (we offer them fee-cost-free) or as a result of one more broker (which may charge commissions). See the Vanguard Brokerage Companies fee and rate schedules for full aspects. Vanguard ETF Shares are not redeemable right with the issuing fund other than in very substantial aggregations really worth millions of dollars. ETFs are subject matter to marketplace volatility. When acquiring or selling an ETF, you will spend or acquire the recent marketplace price tag, which may be extra or a lot less than net asset price.

All investing is subject matter to possibility, together with the probable reduction of the cash you devote. Diversification does not be certain a earnings or protect versus a reduction. Investments in bonds are subject matter to interest charge, credit rating, and inflation possibility.

“Vanguard Extremely-Short Bond ETF released these days”, 4 out of 5 dependent on 675 ratings.