Categories: Exchange Traded Funds (ETFs)U.S. Investing

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.

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.

Doug Fabian

Doug Fabian is the Editor of Weekly ETF Report, a free weekly e-newsletter, and the newsletter Successful ETF Investing. He’s also the host of the syndicated radio show, “Doug Fabian’s Wealth Strategies.” Doug also edits the fast-paced trading service ETF Trader’s Edge, for investors who want to take their profits to the next level. Taking over the reins from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert’s Investment Digest. Doug became a member of the “SmartMoney 30” in 1999 — a listing of the most influential individuals in the mutual fund industry. In the feature, SmartMoney magazine exclaims that Doug is the best-known “trend follower” among the $56 billion (and growing) group of financial advisors. In 2001, Doug wrote “Maverick Investing,” published by McGraw-Hill. He also regularly appears at seminars around the country, stands out on the pages of the largest newspapers (The Wall Street Journal, The Los Angeles Times, and The New York Times), and speaks on national television (CNBC, Fox News, and Bloomberg Forum). For more than 35 years, Successful ETF Investing (formerly the Telephone Switch Newsletter and Successful Investing) has produced double-digit percentage annual gains. Doug has become known for his expert knowledge and timely use of innovative tools, such as exchange-traded funds, bear funds, and enhanced-index funds to profit in any market climate. For more information about Doug’s services, go to http://www.fabian.com/