Vanguard Short-Term Bond Index Fund Price & Performance (BSV)

Last week saw a surge in inflows to short-term bond ETFs, with the Vanguard Short-Term Bond ETF (BSV) attracting $2.2 billion. This trend reflects investor caution as market turbulence and concerns over economic policy drive a shift toward lower-risk, fixed-income assets, even as equities experienced notable outflows.12

Vanguard has launched the Vanguard Short Duration Bond ETF (VSDB), further broadening its suite of fixed income products. The move comes as the firm continues to adapt to investor demand for lower-duration, risk-managed bond strategies, especially in a climate of uncertain interest rate direction.34

The Vanguard Short-Term Bond Index Fund stands out for its government-heavy portfolio and low fees, offering broad exposure to investment-grade U.S. bonds. With a duration near 2.7 years and a focus on Treasuries, it appeals to risk-averse investors but may lag in rising-rate environments or when corporate bonds outperform.56