Vanguard launches short-dated ETF

Vanguard has claimed its latest fixed income product is the first corporate bond ETF with a 1-3 year benchmark.

Vanguard launches short-dated ETF


The Vanguard USD Corporate 1-3 Year Bond Ucits ETF will track the Bloomberg Barclays Global Aggregate Corporate: USD Index 1-3 Year. It carries an ongoing charges figure (OCF) of 0.15%.

Vanguard said it is currently the only short-term corporate bond ETF offering a 1-3-year benchmark.

The short-dated fund launch comes as Vanguard’s Lifestrategy products come under scrutiny for as duration soars above nine years.

Vanguard said effective duration on the USD Corporate 1-3 Year Bond Ucits ETF is 1.86 years. In contrast, its existing USD Corporate Bond Ucits ETF has average duration of 6.9 years. Average maturity in that fund is 10.2 years.

The ETF will be listing on the London Stock Exchange (LSE) and the Deutsche Börse.

Vanguard offers 24 Ucits ETFs listed on the LSE, and has over $170bn in assets under management across its European mutual fund and ETF range and $5.0trn AUM globally.