VUSB

Vanguard Ultra-Short Bond ETF

$49.85

+0.00%

Market closed. Last update: 11:57 AM ET

📎 Investment Objective

The Vanguard Ultra-Short Bond ETF seeks to provide current income while maintaining a low-duration portfolio to limit interest rate risk.

Overview

ETF tracking Vanguard Ultra-Short Bond ETF

Category Fixed Income

Issuer Vanguard

Inception Date 2021-04-07

Market Cap $5.7B

Average Volume N/A

Dividend Yield 3.91%

52-Week Range $49.49 - $49.99

VWAP $49.86

Performance

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Investment Summary

📎 Investment Objective

The Vanguard Ultra-Short Bond ETF seeks to provide current income while maintaining a low-duration portfolio to limit interest rate risk.

🎯 Investment Strategy

The ETF invests in a diversified portfolio of high-quality, short-term bonds and other fixed income securities. The fund aims to maintain a weighted average maturity of 1 year or less to minimize interest rate sensitivity.

✨ Key Features

Focuses on ultra-short duration fixed income securities to reduce interest rate risk
Diversified portfolio of high-quality bonds and other debt instruments
Seeks to provide current income with low volatility
Expense ratio of 0.00%, making it one of the lowest cost ultra-short bond funds

⚠️ Primary Risks

Credit risk - the risk that an issuer will fail to pay principal and interest on time
Interest rate risk - the risk that bond prices will decline due to rising interest rates
Liquidity risk - the risk of selling securities at unfavorable prices due to lack of market demand
Reinvestment risk - the risk that future cash flows will need to be reinvested at a lower interest rate

👤 Best For

The Vanguard Ultra-Short Bond ETF may be suitable for investors seeking a low-risk, low-volatility fixed income allocation to help manage cash holdings or as a temporary parking spot for funds. Its focus on ultra-short duration makes it less sensitive to interest rate changes compared to longer-term bond funds.