Vanguard today announced plans to introduce Vanguard Short Duration Bond ETF (VSDB), an active fixed income ETF that will be managed by Vanguard Fixed Income Group. Vanguard intends to launch the ETF in early April of this year.
“The addition of VSDB to our line up underscores Vanguard’s commitment to meeting the needs of our clients, providing them with access to Vanguard’s world-class active investment talent at a low cost with the convenience and flexibility offered by the ETF structure,” said Dan Reyes, head of Vanguard Portfolio Review Department. “Vanguard Short Duration Bond ETF adds to our growing suite of actively managed fixed income ETFs and offers investors the potential to outperform the market within their short-term fixed income allocations.”
Vanguard Short Duration Bond ETF is designed to provide clients with current income and lower price volatility consistent with short-duration bonds. The new ETF will offer diversified exposure to primarily short-duration U.S. investment-grade bonds – including some exposure to structured products, such as asset-backed securities – with the flexibility to invest in below investment-grade debt and emerging markets to seek additional yield. This multi-sector approach is consistent with investors’ preferences within their short-term fixed income allocations and enables Vanguard Fixed Income Group to draw upon the best ideas across a wide investable universe. Vanguard Short Duration Bond ETF will have an estimated expense ratio of 0.15%.
The ETF will be actively managed, enabling the portfolio managers to seek the best opportunities within their investable universe while remaining highly risk-aware.
A leading fixed income adviser
For more than 40 years, Vanguard Fixed Income Group has distinguished itself with deep investment capabilities, disciplined security selection processes, and rigorous risk management techniques, resulting in consistent long-term performance. Vanguard Fixed Income Group is the world’s largest manager of bond mutual funds and ETFs, overseeing the full spectrum of fixed income asset classes and sectors. The team oversees more than $2.4 trillion in global assets under management and has 192 investment professionals across the globe.1
Vanguard’s track record as an investment manager remains unparalleled—95% of Vanguard active fixed income funds outperformed their peer group averages over the past ten years ended 9/30/2024.2
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