For emergency funds, I recommend ultra-short bond ETFs over money market funds (for their superior yield) and CDs (for their liquidity). I compare 12 options, ranging from pure Treasuries to blended portfolios to corporate‑only options. The Vanguard Ultra-Short Bond ETF stands out for its relatively high 4.54% yield that comes with minimal added credit risk.
VUSB performed well during monetary tightening but is now downgraded to 'Hold' due to lower yields in a monetary easing environment. The interest rate curve has shifted, reducing front-end yields by 90 bps, making VUSB less appealing. VUSB's portfolio is overweight corporate bonds and ABS, with tight credit spreads and a low 30-day SEC yield of 3.74%.
![]() VUSB In 3 weeks Estimated | Monthly | $0.19 Per Share |
![]() VUSB 4 days ago Paid | Monthly | $0.19 Per Share |
![]() VUSB 5 months ago | Other | $0.19 Per Share |
![]() VUSB 6 months ago | Other | $0.21 Per Share |
![]() VUSB 7 months ago | Other | $0.21 Per Share |
![]() VUSB 8 months ago Paid | Monthly | $0.21 Per Share |
![]() VUSB In 3 weeks Estimated | Monthly | $0.19 Per Share |
![]() VUSB 4 days ago Paid | Monthly | $0.19 Per Share |
![]() VUSB 5 months ago | Other | $0.19 Per Share |
![]() VUSB 6 months ago | Other | $0.21 Per Share |
![]() VUSB 7 months ago | Other | $0.21 Per Share |
![]() VUSB 8 months ago Paid | Monthly | $0.21 Per Share |
BATS Exchange | US Country |
The fund is designed to cater to investors looking for a conservative investment vehicle, focusing on providing stable returns through a diversified portfolio of high-quality and, to a lesser extent, medium-quality fixed income securities. With a strategic emphasis on maintaining a dollar-weighted average maturity of 0 to 2 years, the fund aims to offer a blend of short-term investment horizons with minimized interest rate risk. It operates under a common investment strategy where at least 80% of its assets are earmarked for fixed income securities, ensuring a significant commitment towards fixed income instruments for its investors.
The fund's product offerings are characterized by a focus on fixed income securities, outlined as follows:
This product focuses on investing in high-quality fixed income securities, which typically include government bonds, corporate bonds, and other debt instruments that are rated high by credit rating agencies. The emphasis on high-quality securities aims to provide investors with a stable and relatively low-risk income stream.
Alongside high-quality investments, the fund also allocates a portion of its portfolio to medium-quality fixed income securities. This strategy is designed to potentially enhance yields while maintaining a balance of risk, thereby diversifying the income sources and possibly offering higher returns compared to solely investing in high-quality securities.
With a dollar-weighted average maturity of 0 to 2 years, the fund is uniquely positioned for investors seeking short-term investment opportunities. This focus on shorter maturity periods helps in minimizing the impact of interest rate fluctuations on the portfolio, making it an attractive option for conservative investors or those with a shorter investment time frame.
The fund ensures that at least 80% of its assets are invested in fixed income securities. This commitment reflects a strong focus on providing income through interest earnings, characterized by investment stability and regular income generation, making it suitable for income-focused investors.