Vanguard USD Corporate 1-3 Year Bond UCITS ETF Accumulating

Vanguard USD Corporate 1-3 Year Bond UCITS ETF Accumulating is an exchange-traded fund designed to provide investors exposure to short-term, investment-grade corporate bonds denominated in US dollars. The fund's primary objective is to track the Bloomberg Global Aggregate Corporate USD 1-3 index, which includes bonds issued by corporations across both developed and emerging markets, with maturities ranging from one to three years. By focusing on investment-grade securities, the ETF targets lower default risk, while the short maturity reduces overall interest rate sensitivity compared to longer-dated bonds. This fund employs a physical sampling replication method, selecting a representative subset of the index's constituents to closely mirror its performance. It houses a highly diversified portfolio of approximately 1,736 holdings, with a significant allocation to US issuers, alongside exposures to the UK, Japan, Canada, and other regions. The fund’s accumulating structure means all interest income received from its bond holdings is automatically reinvested, supporting compounding returns for investors rather than paying out cash distributions. With assets totaling over 2 billion euros and a low total expense ratio of 0.09% per annum, the ETF is notable for its scale and cost efficiency. Managed by Vanguard and domiciled in Ireland, it serves as a transparent, liquid vehicle for those seeking steady fixed income exposure with minimal reinvestment hassle, and plays an important role in portfolio diversification, especially for investors aiming to mitigate duration risk without venturing into higher-yield categories.