Vanguard USD Corporate Bonds 1 – 3 Years

ETF description

This ETF invests in short‑term corporate bonds issued by companies in the U.S. with maturities ranging from 1 to 3 years. Corporate bonds are debt securities issued by companies to raise capital, and they typically pay regular interest. By focusing on bonds with shorter maturities, this fund aims to provide greater stability and reduce sensitivity to changes in interest rates compared to longer‑term bonds. The bonds included in the fund are investment‑grade, meaning they are considered to have a relatively low risk of default.

This ETF may appeal to investors who want regular income through interest payments but prefer lower risk and less price volatility. It could suit those looking for a conservative investment option with a focus on stable, short‑term bonds.

Issuer details

Vanguard is the largest provider of mutual funds and the second‑largest provider of ETFs in the world.

Vanguard is a major American investment management company headquartered in Malvern, Pennsylvania. It’s known for being the largest provider of mutual funds in the world and the second‑largest provider of ETFs after BlackRock’s iShares with over $8trn in global assets under management (as at June 2024). Vanguard was founded in 1975 by John C. Bogle and is notable for its unique ownership structure ‑ it is owned by its funds, which in turn are owned by their shareholders. This structure is designed to align Vanguard’s interests with those of its investors, helping to keep costs low.

Index details

The USD Corporate Bonds 1 – 3 Years index offers investors targeted exposure to short‑term, investment‑grade corporate bonds denominated in U.S. dollars. By focusing on bonds with maturities between one and three years, the index provides a measure of performance that reflects the dynamics of short‑term corporate debt markets while emphasizing high credit quality.