Vanderbilt launched Vanguard Short Duration Bond ETF with competitive fees targeting income investors

From Yahoo Finance: 2025-04-02 18:30:00

Vanguard launched a new active fixed income exchange-traded fund, the Vanguard Short Duration Bond ETF (VSDB), managed by Vanguard’s Fixed Income Group with a 0.15% expense ratio. The fund primarily holds short-duration US investment-grade bonds but can include below-investment-grade debt and emerging markets for additional yield.

The launch of the actively managed VSDB ETF shows manager interest in active fixed-income products with competitive fees. It targets investors seeking income while avoiding interest rate risk, appealing amidst market uncertainty. Short-term bonds, especially with credit risk, offer strong risk/return profiles, making them a key category for active management.

Despite outflows to ultra-short or money market products due to an inverted yield curve, short-term bond funds and ETFs remain critical for investors’ liquidity portfolios. Flows are returning to both active and passive short-term bond products this year, offering attractive yield while lowering volatility in overall bond portfolios.



Read more at Yahoo Finance: Vanguard Launches New Short Duration Bond ETF