Vanguard Short-Term Federal Fund Admiral Shares

Frequently Asked Questions About VSGDX

What does VSGDX invest in?

The fund aims to generate consistent income for investors while striving to keep fluctuations in its share price at a minimum. Under typical market conditions, at least 80% of its portfolio will be dedicated to short-term debt instruments that are either issued or guaranteed by the U.S. government and its associated agencies. It's crucial to understand, however, that a significant portion of these securities do not carry the explicit "full faith and credit" guarantee of the U.S. government. On average, the dollar-weighted maturity of the fund's holdings is projected to be between one and four years.

What is the expense ratio of VSGDX?

Vanguard Short-Term Federal Fund Admiral Shares (VSGDX) charges an expense ratio of 0.10%. This is the annual fee deducted from fund assets to cover management and operations.

What is VSGDX's dividend yield?

VSGDX's trailing-twelve-month yield is 4.06%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VSGDX?

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

What is the credit quality of VSGDX?

VSGDX'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 VSGDX?

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