The fund has a total expense ratio of 0.20%, and tracks the Barclays Global Aggregate 500MM UK Non-Government 1-5 Year Float Adjusted Bond Index, the sterling subset of the Barclays Global Aggregate Float Adjusted Bond Index.
The firm now has six sterling-denominated fixed income mutual funds, shown in the table below.
| Vanguard Global Bond Index Fund |
| Vanguard U.K. Government Bond Index Fund |
| Vanguard U.K. Inflation-Linked Gilt Index Fund |
| Vanguard U.K. Investment Grade Bond Index Fund |
| Vanguard U.K. Short-Term Investment Grade Bond Index Fund |
| Vanguard U.K. Long Duration Gilt Index Fund |
Tom Rampulla, managing director of Vanguard Asset Management, said: “The Vanguard UK Short-Term Investment Grade Bond Index Fund enables investors to diversify their portfolios further with short-term bonds of investment grade quality. By including government-related and securitised issues as well as corporates it’s designed to offer higher credit quality and lower volatility than a pure corporate bond portfolio.”
Last week the firm unveiled a range of four physically-backed ETFs, offering European investors access to key developed equity markets.
Around half of investors that are yet to make an investment in an ETF want to know more about the vehicles before making their first commitment; find out more about investor sentiment towards ETF’s here.
