Vanguard Short-Term Federal Fund Investor Shares

Frequently Asked Questions About VSGBX

What does VSGBX invest in?

This fund's primary objective is to generate consistent income for investors while aiming to minimize significant fluctuations in its market value. Under typical market conditions, at least 80% of its holdings are allocated to short-duration debt securities either issued directly by or guaranteed by agencies of the U.S. government. It's crucial to understand that a number of these agency-backed instruments do not carry the explicit "full faith and credit" guarantee of the U.S. federal government. The portfolio generally targets an average maturity for its underlying bonds ranging between one and four years.

What is the expense ratio of VSGBX?

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

What is VSGBX's dividend yield?

VSGBX's trailing-twelve-month yield is 3.96%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VSGBX?

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

What is the credit quality of VSGBX?

VSGBX'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 VSGBX?

Yield to maturity (YTM) is the total return you'd earn from VSGBX if every bond in the portfolio is held to maturity at the current price. VSGBX'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.