Vanguard Short-Term Corporate Bond Index Fund

The Vanguard Short-Term Corporate Bond Index Fund is a mutual fund that primarily focuses on investing in short-term, investment-grade corporate bonds. Its goal is to provide a stable and consistent source of income with a lower risk profile compared to longer-duration bonds, making it an attractive option for investors seeking short-term returns with limited interest rate risk. This fund primarily holds securities with maturities typically ranging from one to five years, allowing for a balance between yield and risk mitigation. By tracking an index of investment-grade corporate bonds, the fund offers exposure to a wide array of sectors, including finance, industrial, and utilities, among others. With a focus on maintaining low management fees, the Vanguard Short-Term Corporate Bond Index Fund aims to maximize returns passed on to shareholders while replicating the performance of the included index. This fund serves an essential role in preserving capital and generating steady income within the fixed income portion of an investment portfolio.