About Vanguard Short-Term Bond Index Fund ETF Shares (BSV)

The Vanguard Short-Term Bond Index Fund ETF Shares (BSV) is a popular exchange-traded fund that aims to track the performance of the Bloomberg Barclays U.S. 1-5 Year Government/Credit Float Adjusted Index. This index consists of a diverse range of short-term bonds, including government, corporate, and international bonds. BSV provides investors with a low-cost and efficient way to gain exposure to the short-term bond market.

With a focus on short-term bonds, BSV offers investors the potential for lower interest rate risk compared to longer-term bond funds. Short-term bonds generally have lower durations, meaning they are less susceptible to changes in interest rates. This can be especially attractive for investors looking for stability and preservation of capital. BSV's portfolio consists of bonds with maturities ranging from one to five years, providing a good balance between yield potential and risk management.