VSDB
Vanguard Short Duration Bond ETF
📎 Investment Objective
The Vanguard Short Duration Bond ETF (VSDB) seeks to provide current income while maintaining a relatively short average duration.
Overview
ETF tracking Vanguard Short Duration Bond ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Vanguard Short Duration Bond ETF (VSDB) seeks to provide current income while maintaining a relatively short average duration.
🎯 Investment Strategy
The ETF invests in a diversified portfolio of high-quality, short-term bonds and other fixed income securities. It aims to maintain an average duration of 1-3 years to limit interest rate risk.
✨ Key Features
- Focuses on short-term, investment-grade bonds to provide stability and lower volatility
- Maintains a short average duration to reduce sensitivity to rising interest rates
- Seeks to generate current income while preserving capital
- Passively tracks the Bloomberg U.S. 1-3 Year Government/Credit Float Adjusted Index
⚠️ Primary Risks
- Interest rate risk: The fund's value may decline if interest rates rise
- Credit risk: The fund is exposed to the risk of bond issuers defaulting on their obligations
- Liquidity risk: Certain bonds held by the fund may be difficult to sell at an advantageous time or price
- Index tracking error: The fund may not perfectly track its underlying index
👤 Best For
The Vanguard Short Duration Bond ETF may be suitable for investors seeking a low-risk, low-volatility fixed income investment to diversify their portfolio or preserve capital. It is best suited for investors with a short-term investment horizon who want to limit their exposure to interest rate fluctuations.
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