According to a press release from the mutual fund company, the firm’s four bond funds include the Vanguard Total Bond Market Index Fund, the Vanguard Short-Term Bond Index Fund, the Vanguard Intermediate-Term Bond Index Fund, and the Vanguard Long-Term Bond Index Fund.
The four bond ETFs will provide investors with exposure to the entire U.S. bond market at a cost of 0.11% and will be managed by Vanguard’s fixed income group, according to the release.
Vanguard Total Bond Market ETF will be a share class of the Vanguard Total Bond Market Index Fund, which tracks the performance of the market-weighted Lehman Brothers Aggregate Bond Index and holds nearly 2,800 corporate, Treasury, agency, and mortgage securities.
The other three ETFs are as follows:
- Vanguard Short-Term Bond tracks the Lehman Brothers 1-5 year Government/Credit Index
- Vanguard Intermediate-Term Bond ETF tracks the Lehman Brothers 5-10 year Government/Credit Index
- Vanguard Long-Term Bond ETF tracks the Lehman Brothers Long Government/Credit Index
Vanguard’s ability to offer bond ETFs is pending approval by the Securities and Exchange Commission.