Vanguard Short-Term Investment-Grade Fund Admiral Shares (VFSUX)

Overview

This fund is designed to cater to investors looking for a mix of stability and income through investment in both high-quality and medium-quality fixed income securities. Focusing predominantly on investment-grade securities, it allocates at least 80% of its assets towards short- and intermediate-term instruments. These are defined based on their credit ratings, where high-quality securities must be rated equivalent to A3 or better, indicating a lower risk of default and suggesting a more stable investment option. On the other hand, the medium-quality securities fall within the Baa1 to Baa3 rating range, offering slightly higher yields but with an increased risk profile. This strategy aims to achieve a balanced approach by mixing secure, lower-yield investments with those that offer higher returns albeit with a moderate increase in risk.

Products and Services

• High-Quality Fixed Income Securities

  These investment options are central to the fund's portfolio, targeted to be at least 80% of the investment mix. High-quality securities are those with a rating equivalent to A3 or higher, indicative of a lower risk of default. They are ideal for conservative investors or as a stable base in a diversified portfolio, offering predictable returns and preserving capital.

• Medium-Quality Fixed Income Securities

  Complementing the high-quality investments, this category includes securities rated between Baa1 and Baa3. These options provide a balance by offering potentially higher yields than their high-quality counterparts, but carry a higher level of risk. They suit investors looking to enhance returns while accepting moderate increases in risk level as part of a diversified investment strategy.