- What does VUBFX invest in?
- This fund's primary objective is to generate ongoing income while striving to maintain relatively stable share prices. It accomplishes this by investing in a broad array of fixed income instruments, mainly those rated as high-quality, with a smaller allocation to medium-quality debt. The fund's investments are managed to keep a very short dollar-weighted average maturity, typically between zero and two years. Under standard market conditions, at least 80% of its total assets will be dedicated to fixed income securities. It offers investors an affordable gateway to money market-like instruments and high-grade, short-term bonds, including those issued by governments, corporations (investment-grade), and asset-backed securities. Although it usually offers a better yield than traditional money market funds, its share price is subject to variability, and investors face principal risk; thus, it should not be considered an identical replacement for a money market fund. Furthermore, rising interest rates present a risk, potentially causing the value of the bonds within the portfolio, and subsequently the fund's share price, to decline. It is important to note that this Ultra-Short-Term Bond Fund is a distinct product, separate from the Vanguard Ultra-Short Bond ETF (VUSB), and due to variations in size, investment methodologies, and specific holdings, their investment performance is anticipated to differ.
- What is the expense ratio of VUBFX?
- Vanguard Ultra-Short-Term Bond Fund Investor Shares (VUBFX) charges an expense ratio of 0.20%. This is the annual fee deducted from fund assets to cover management and operations.
- What is VUBFX's dividend yield?
- VUBFX's trailing-twelve-month yield is 4.78%, calculated from the sum of dividends over the past year divided by the current price.
- What is the duration of VUBFX?
- Effective duration measures VUBFX's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VUBFX's current duration is published on the fund's factsheet on the issuer's website.
- What is the credit quality of VUBFX?
- VUBFX'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 VUBFX?
- Yield to maturity (YTM) is the total return you'd earn from VUBFX if every bond in the portfolio is held to maturity at the current price. VUBFX'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.
