VUSB ETF — Holdings & Analysis

With an expense ratio of 0.1000%, VUSB offers exposure to money market instruments and short-term bonds, including asset-backed, government, and investment-grade corporate securities. VUSB differentiates itself by focusing on a dollar-weighted average maturity of 0 to 2 years, making it distinct from the Vanguard Ultra-Short-Term Bond Fund (VUBFX and VUSFX) due to differences in scale and investment processes.

Vanguard Ultra-Short Bond ETF (VUSB) ETF — Price, Holdings & Analysis

The Vanguard Ultra-Short Bond ETF (VUSB) is a $8.00B fund from Vanguard designed to provide current income with limited price volatility by investing in high-quality, short-term fixed income securities. With an expense ratio of 0.1000%, VUSB offers exposure to money market instruments and short-term bonds, including asset-backed, government, and investment-grade corporate securities. VUSB differentiates itself by focusing on a dollar-weighted average maturity of 0 to 2 years, making it distinct from the Vanguard Ultra-Short-Term Bond Fund (VUBFX and VUSFX) due to differences in scale and investment processes.

ETF Overview

The fund’s investment objective is to seek to provide current income while maintaining limited price volatility. The fund invests in a diversified portfolio of high-quality and, to a lesser extent, medium-quality fixed income securities. The fund is expected to maintain a dollar-weighted average maturity of 0 to 2 years. Under normal circumstances, the fund will invest at least 80% of its assets in fixed income securities. The fund is designed to give investors low-cost exposure to money market instruments and short-term high-quality bonds, including asset-backed, government, and investment-grade corporate securities. Although short-term bond funds tend to have a higher yield than money market funds, their share price fluctuates. Because the Ultra-Short Bond ETF will subject investors to principal risk, the fund shouldn’t be viewed as a substitute for a money market fund. Additionally, increases in interest rates can cause the prices of the bonds in the portfolio, and thus the fund’s share price, to decrease.The Ultra-Short Bond ETF is a stand alone product and is separate and distinct from the Vanguard Ultra-Short-Term Bond Fund (VUBFX and VUSFX). Differences in scale, certain investment processes, and underlying holdings are expected to produce different investment returns by the funds.

The Vanguard Ultra-Short Bond ETF (VUSB) aims to deliver current income while minimizing price fluctuations. It achieves this by investing primarily in high-quality and, to a lesser extent, medium-quality fixed income securities. VUSB maintains a dollar-weighted average maturity of 0 to 2 years, providing exposure to money market instruments and short-term high-quality bonds. These include asset-backed, government, and investment-grade corporate securities. The fund invests at least 80% of its assets in fixed income securities. A significant portion, 54.6%, is allocated to United States bonds, with 25.2% in other countries, 6.9% in Canada, 3.8% in the United Kingdom, and 2.5% in Japan. VUSB is designed for investors seeking a low-cost, conservative approach to fixed income, but it is not a direct substitute for a money market fund due to principal risk. It is a stand alone product and is separate and distinct from the Vanguard Ultra-Short-Term Bond Fund (VUBFX and VUSFX).

Risk Metrics

VUSB, while designed for stability, carries inherent risks. As a bond ETF, it is subject to interest rate risk; rising rates can decrease the value of its holdings. With 100.0% of its sector allocation in Cash & Others, VUSB exhibits concentration risk in that specific area of fixed income. The fund's beta of 0.10 indicates lower volatility compared to the broader market. The expense ratio of 0.1000% can create a slight drag on returns, although it is relatively low for a bond ETF. Investors should be aware that while VUSB seeks to minimize price volatility, it is not risk-free, and its share price can fluctuate. Past performance does not guarantee future results.

Expense Ratio

0.10%

How Is the Fund Allocated?

Sector	Weight
Cash & Others	100.0%

Country	Weight
United States	54.6%
Other	25.2%
Canada	6.9%
United Kingdom	3.8%
Japan	2.5%
Switzerland	0.9%
France	0.9%
Spain	0.8%
Australia	0.8%
Ireland	0.8%

Dividend Yield

0.00%

Vanguard Total Bond Market ETF (BND) — 0.03% expense ratio
Hartford Municipal Opportunities ETF (HMOP) — 0.29% expense ratio
Vanguard Long-Term Corporate Bond ETF (VCLT) — 0.03% expense ratio
Virtus Newfleet Securitized Income ETF (VABS) — 0.39% expense ratio
First Trust AAA CMBS ETF (CAAA) — 0.30% expense ratio

Vanguard Morningstar Total Stock Market ETF (VTI) (Large Cap Equity) — 0.03% expense ratio
Vanguard S&P 500 ETF (VOO) (Large Cap Equity) — 0.03% expense ratio
Vanguard Real Estate ETF (VNQ) (Real Estate (Listed/REITs)) — 0.13% expense ratio
Vanguard Mega Cap ETF (MGC) (Large Cap Equity) — 0.05% expense ratio
Vanguard Total Bond Market ETF (BND) (Core Investment Grade Bond) — 0.03% expense ratio
Vanguard Long-Term Corporate Bond ETF (VCLT) (Core Investment Grade Bond) — 0.03% expense ratio

Risk Metrics

Beta: 0.10

Questions & Answers

What is VUSB and what does it track?

VUSB, or the Vanguard Ultra-Short Bond ETF, is designed to provide current income while maintaining limited price volatility. It achieves this by investing in a diversified portfolio of high-quality and, to a lesser extent, medium-quality fixed income securities.

The fund focuses on bonds with a dollar-weighted average maturity of 0 to 2 years.

What is the expense ratio for VUSB?

The expense ratio for VUSB is 0.1000%. This means that for every $10,000 invested in the fund, investors will pay $10 in annual fees. This expense ratio covers the fund's operating costs, including management fees and administrative expenses.

While it's important to consider the expense ratio when evaluating an ETF, VUSB's expense ratio is relatively competitive within the Core Investment Grade Bond category.

What are the top holdings in VUSB?

As a bond ETF, VUSB does not have traditional 'holdings' like stocks. Instead, it holds a portfolio of fixed-income securities. The fund's sector allocation is primarily in Cash & Others, representing 100.0% of the portfolio.

Is VUSB a good long-term investment?

VUSB's suitability as a long-term investment depends on an investor's individual goals and risk tolerance. The fund is designed for investors seeking current income with limited price volatility, making it a potentially conservative option.

With a beta of 0.10, VUSB exhibits lower volatility compared to the broader market. However, its dividend yield is 0.00%.

How does VUSB compare to similar ETFs?

VUSB competes with other ultra-short bond ETFs in the market. Key differentiators include its expense ratio of 0.1000% and its AUM of $8.00B. Some competing ETFs may have higher or lower expense ratios, which can impact returns over time.

VUSB's strategy focuses on maintaining a dollar-weighted average maturity of 0 to 2 years.

Does VUSB pay dividends?

As of 2026-03-15, VUSB's dividend yield is 0.00%. While the fund aims to provide current income, its focus is on capital preservation and stability rather than high dividend payouts.

Investors seeking income may want to consider other bond ETFs with higher dividend yields. However, it's important to note that higher yields often come with increased risk.