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Vanguard Offers Low-Fee Bond Fund


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%.

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.

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