Vanguard Offers Low-Fee Bond Fund

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.

Today’s ETF Talk features the Vanguard Short-Term Bond ETF (BSV) as we wrap up our series about Vanguard, a low-expense-ratio exchange-traded fund (ETF) provider.

The last ETF on this list, BSV, is the smallest fund of all of those we have addressed in our series. Even so, BSV still holds net assets of $15.4 billion. It also offers a Vanguard-typical 0.10% expense ratio, which is about an eighth of the average expense ratio of a similarly allocated fund.

BSV is designed to match the performance of a market-weighted bond index that includes medium and larger public issues of U.S. government, investment-grade corporate and international bonds with maturities between one and five years.
This ETF has roughly broken even this year, growing only 0.34%. It has a dividend yield of 1.17%.

BSV_121214

As a bond fund, BSV does not have traditional sector allocations or holdings. Its largest holdings are in a spread of United States Treasury Notes ranging in yield from 0.625% to 2.125%, depending on their duration.

If short-term bonds are a method of rounding out a portfolio that you find appealing, Vanguard Short-Term Bond ETF (BSV) may be an intriguing option for you to consider.

If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please consider subscribing to my Successful ETF Investing newsletter. As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an e-mail. You just may see your question answered in a future ETF Talk.

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