Search Bob Brinker Fan Club Blogs

Monday, February 16, 2015

VUBFX Vanguard's Ultra Short Term Bond Fund

Bob Brinker talked about Vanguard's Ultra Short Term Bond Fund.  This is a new fund from Vanguard that they announced on November 24, 2014.   Key features:
  • The new fund, which is scheduled to launch in early 2015, will offer investors low-cost exposure to money market securities and high-quality short-term bonds* with an average estimated duration of one year. 
  • However, the fund should not be viewed as an alternative to money market funds, which seek to offer a stable $1 net asset value.
  • Unlike a money market fund, Vanguard Ultra-Short-Term Bond Fund will have a fluctuating net asset value and subject you to principal risk. 
  • Expense ratio as of 02/10/2015 is 0.20%
  • SEC yield as of 02/13/2015 is 0.00% (yes, ZERO!)  It just started Friday so it may have to buy some bonds and subtract the management fee before it can calculate a higher yield.
Currently (2/16/15) you can get 1.00% at two banks that offer FDIC insurance.  This rate tool helps find the best rates for savings accounts:
    Due to the risk to principal if rates go up this year,  I'd go with an FDIC  savings account at 1.00% instead.   If your cash is in a Vanguard IRA, perhaps you can move your cash out of Vanguard and into an IRA at one of these banks to get the full 1%.  

    FREE Updates Mailing List

    We email regular "FREE Bob Brinker Fan Club Updates" to everyone on our "Bob Brinker Fan Club" distribution list. If you would like to get on this list, then click this link.

    Top Rated Newsletter

    Timer Digest Features
    Kirk Lindstrom's Investment Letter
    on its Cover

    Cick to read the full page article!

    US Treasury Rates at a Glance - iBond Rates - LIBOR Rates

    Must Read:
    Beware of Annuities - Payday Loans Warning