Vanguard Will Expand Its Fixed-Income Offering with the Launch of the Vanguard Short Duration Bond ETF (VSDB), an Actively Managed Fixed-Income ETF to Be Managed by Vanguard’s Fixed-Income Group.
“The Vanguard Short Duration Bond ETF adds to our growing lineup of actively managed fixed-income ETFs and offers investors the opportunity to outperform the market in their short-term fixed-income allocations,” said Dan Reyes, Head of Vanguard’s Portfolio Review Department.
The firm plans to launch this ETF in early April of this year, and it will offer diversified exposure, primarily to short-term U.S. investment-grade bonds, including some exposure to structured products such as asset-backed securities.
The ETF is designed “to provide clients with current income and lower price volatility, consistent with short-duration bonds,” according to the statement.
Additionally, it will have the flexibility to invest in below-investment-grade debt and emerging markets to seek additional yield.
“This multi-sector approach aligns with investors’ preferences within their short-term fixed-income allocations and allows Vanguard’s fixed-income group to leverage the best ideas within a broad investable universe. The VSDB will have an estimated expense ratio of 0.15%,” the manager’s statement adds.
The ETF will be actively managed, enabling portfolio managers to seek the best opportunities within their investment universe while always maintaining a highly risk-aware approach, the information concludes.
