Vanguard Ultra-Short Bond ETF

Frequently Asked Questions About VUSB

What does VUSB invest in?

This ETF is designed to achieve two primary goals: generating consistent current income for investors while keeping its share price fluctuations to a minimum. It invests predominantly in a diverse portfolio of high-quality fixed income securities, with a smaller portion allocated to those of medium quality. The fund typically maintains a dollar-weighted average maturity ranging from zero to two years. Under normal market conditions, at least 80% of its assets will be dedicated to these debt instruments. The VUSB aims to provide investors with economical access to short-duration, high-quality bonds, including those issued by governments, asset-backed securities, and investment-grade corporations, as well as money market instruments. While it often offers a higher yield than traditional money market funds, it's crucial to understand that its share price will fluctuate. Because this Ultra-Short Bond ETF exposes investors to principal risk, it should not be considered a direct substitute for a money market fund. Furthermore, an upward movement in interest rates can lead to a decrease in the value of the bonds held within the portfolio, subsequently impacting the fund's unit price. It is important to distinguish the Ultra-Short Bond ETF as an independent product, separate from the Vanguard Ultra-Short-Term Bond Fund (VUBFX and VUSFX). Due to differences in their size, specific investment strategies, and underlying holdings, these funds are expected to deliver varying investment returns.

What is the expense ratio of VUSB?

Vanguard Ultra-Short Bond ETF (VUSB) charges an expense ratio of 0.10%. This is the annual fee deducted from fund assets to cover management and operations.

What is VUSB's dividend yield?

VUSB's trailing-twelve-month yield is 4.31%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VUSB?

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

What is the credit quality of VUSB?

VUSB'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 VUSB?

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