VALLEY FORGE, PA — Vanguard has unveiled its latest offering, the Vanguard Short Duration Bond ETF (VSDB), an actively managed fixed income exchange-traded fund aimed at providing investors with current income and reduced price volatility. Managed by Vanguard Fixed Income Group, the ETF caters to the growing demand for active bond solutions within an ETF structure.
“The addition of Vanguard Short Duration Bond ETF reaffirms our commitment to meeting the evolving needs of investors who are increasingly seeking active bond solutions through an ETF wrapper,” said Sara Devereux, Global Head of Vanguard Fixed Income Group.
VSDB focuses on short-duration U.S. investment-grade bonds, with portfolio flexibility extending to structured products like asset-backed securities and select below-investment-grade debt to enhance yield opportunities. This active management approach allows the fund managers, Arvind Narayanan and Thanh Nguyen, to strategically identify attractive opportunities within the bond market while maintaining rigorous risk oversight.
A standout feature of the ETF is its expense ratio of just 15 basis points (bps), positioning it among the lowest-cost options in its category, where the average expense ratio for active ETFs is 39 bps. This cost advantage bolsters its appeal to fee-conscious investors seeking competitive returns.
With VSDB’s debut, Vanguard now offers six actively managed bond ETFs, expanding its total suite of actively managed products to 27. This move highlights Vanguard’s continued focus on delivering institutional-quality investment solutions with industry-leading affordability.
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