Vanguard USD Corporate 1 – 3 Year Bond

ETF description

The Vanguard USD Corporate 1 – 3 Year Bond ETF provides investors with exposure to short‑term, investment‑grade corporate bonds issued by U.S. companies. By tracking the Bloomberg U.S. Corporate 1 – 3 Years index, this ETF focuses on bonds with maturities ranging from 1 to 3 years. It aims to offer a balance of yield and interest rate risk, providing relatively higher yields compared to shorter‑term government securities while minimizing the volatility associated with longer‑duration bonds. This ETF is suitable for investors seeking stable income from high‑quality corporate debt with limited interest rate exposure.

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.