The latest addition to our fixed income ETF (Exchange-Traded Fund) lineup is now available. The Vanguard Ultra-Short Bond ETF (VUSB) is designed as a low-cost option for investors with expected cash demand in 6 to 18 months.
If you are saving for a short-term goal or building your emergency fund, Vanguard Ultra-Short Bond offers investment options for the ETF Money Market or short-term bonds.
Utilize your savings
Whether you’re saving for a car or vacation or saving for a rainy day, our new Vanguard Ultra-Short Bond ETF offers the highest possible return on your cash while keeping your risk low.
“The Vanguard Ultra-Short Bond ETF features an ETF framework for investors looking for alternatives to the expected cash demand within 6 to 18 months,” said Caitlin Coglin, head of the Vanguard Portfolio Review Division. “A very short-term strategy is to close the gap between a stable share price and short-term bond funds between money market funds, which is for long investment periods.”
Take a closer look at our new ETF
Ultra-Short Bond ETF is a low-cost, diversified, actively managed fund that:
- Seeks to provide current income and limited price volatility.
- Vanguard Ultra-Short-Term Bond Fund has a similar strategy and targets the same average duration প্রায় about 1 year.
- Ultra-short-term bonds have a competitive estimated cost-to-earnings ratio of 0.10% compared to the average cost-to-earnings ratio of 0.22%. *
- As advised by Vanguard Fixed Income Group, one of the world’s largest fixed income managers with সম্প 2 trillion in global assets by February 21, 2021.
- Co-directed by Samuel C. Martinez, CFA; Arvind Narayanan, CFA; And Daniel Shykevich.
- Samuel has worked in investment management since 2010.
- Arvind has been working in investment management since 2002 and joined Vanguard in 2019.
- Daniel, the principal of Vanguard, has been working on investment management since 2001 and 201. Joined Vanguard in.
How do these ETFs compare to money market funds and short-term bond funds?
Ultra-short-term bond funds generally yield higher than money market funds, bank products and CDs (certificates of deposit). However, since the share prices of ultra-short-term bond products fluctuate, they should not be seen as an alternative to money market funds, which historically aimed to maintain a stable share price of $ 1.
Ultra-short bond ETFs expect less volatility than short-term bond products, which are more sensitive to interest rate changes due to their long-term bond holdings.
Vanguard has been offering ETFs since 2001. With the addition of our new ETFs, Vanguard now offers 20 U.S.-residential fixed income ETFs representing more than 300 300 billion in client assets. **
* Source: The average cost ratio for ultra-short-term bond investments is 0.45% for mutual funds and 0.22% for ETFs, or 28. As of February, 2021, an average of 0.43%, according to Thompson Reuters’ Lipper.
** The assets under management were 909 till February 2, 2021. billion billion dollars.
For more information about the Vanguard Fund or Vanguard ETF, visit investor.vanguard.com to get a prospectus or, if available, a summary prospectus. The prospectus contains investment objectives, risks, charges, expenses and other important information about a fund; Read and consider carefully before investing.
You must buy and sell Vanguard ETF shares through Vanguard Brokerage Services (we offer them commission-free) or through other brokers (which may charge a commission). See Vanguard Brokerage Service Commission and Fee Schedule for complete information. Vanguard ETF shares are not redeemable in any way other than the merger of millions of dollars worth directly with the issuing fund. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or accept the current market price, which may be more or less than the net asset value.
All investments are at risk, including the potential loss of money you invest. Diversity does not guarantee gain or protect from loss. Investing in bonds is subject to interest rates, credit and risk of inflation.
“Vanguard Ultra-Short Bond ETF Launched Today”,