Vanguard launches active Ultra-Short Bond ETF
08/04/2021 - 9:11am
Vanguard has launched its first actively managed bond ETF, managed by its in-house fixed income team, the Vanguard Ultra-Short Bond ETF (VUSB) which offers a low-cost, diversified option for investors seeking income and limited price volatility.
The ETF, which is listed on the Chicago Board Options Exchange (Cboe), has an expense ratio of 0.10 per cent, compared with the average expense ratio for ultra-short-term bond ETFs of 0.22 per cent.
Vanguard Ultra-Short Bond ETF offers the features of an ETF structure for investors seeking an option for anticipated cash needs in the range of sixto 18 months, says Kaitlyn Caughlin, head of Vanguard Portfolio Review Department. An ultra-short strategy bridges the gap between money market funds offering a stable share price and short-term bond funds, which are meant for longer investment time horizons.