Vanguard Short-Term Investment-Grade Fund Investor Shares

Frequently Asked Questions About VFSTX

What does VFSTX invest in?

This fund aims to provide investors with exposure to a mix of high- and medium-quality debt instruments that carry an investment-grade rating and have relatively short durations. Its portfolio consists of corporate debt, securitized consumer credit, and U.S. government bonds. While it generally offers a more attractive yield compared to money market alternatives, it's important to recognize that its share value will fluctuate. Moreover, rising interest rates can diminish the value of the bonds held within the portfolio, subsequently impacting the fund's share price. This investment could be suitable for individuals with near-term financial goals who are prepared for some degree of principal volatility.

What is the expense ratio of VFSTX?

Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) charges an expense ratio of 0.20%. This is the annual fee deducted from fund assets to cover management and operations.

What is VFSTX's dividend yield?

VFSTX's trailing-twelve-month yield is 4.73%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VFSTX?

Effective duration measures VFSTX's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VFSTX's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of VFSTX?

VFSTX's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of VFSTX?

Yield to maturity (YTM) is the total return you'd earn from VFSTX if every bond in the portfolio is held to maturity at the current price. VFSTX's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.