Vanguard Ultra-Short Bond ETF (VUSB) Analysis

For informational purposes only. Not financial advice.

Quick Answer

Vanguard Ultra-Short Bond ETF (VUSB) has a last stored price of $49.41, as of the Oct 2, 2026 trading session. It has a 0.10% expense ratio and $8.0B in assets under management.

In the stored portfolio snapshot, the largest sector allocation is Cash & Others at 100.0%.

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

ETF Overview

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.

Beta: 0.10

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 Long-Term Corporate Bond ETF (VCLT) — 0.03% expense ratio
Hartford Municipal Opportunities ETF (HMOP) — 0.29% 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 Mega Cap ETF (MGC) (Large Cap Equity) — 0.05% 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 Mid-Cap Value ETF (VOE) (Mid Cap Equity) — 0.05% expense ratio

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.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Data provided for informational purposes only.

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