Fund Evaluator:
Vanguard Short-Term Investment-Grade Adm (VFSUX)
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Fund Details
Vanguard Short-Term Investment-Grade Adm Overview
Vanguard Short-Term Investment-Grade Adm (VFSUX) is an actively managed Taxable Bond Short-Term Bond fund. Vanguard launched the fund in 2001.
The investment seeks to provide current income while maintaining limited price volatility. Under normal circumstances, the fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in investment-grade fixed income securities. The majority of these investments will have a dollar-weighted average maturity of 1 to 4 years. Investment-grade fixed income securities are those rated the equivalent of Baa3 and above by Moody’s Ratings or another independent rating agency or, if unrated, are determined to be of comparable quality by the fund’s advisor.
About Vanguard Short-Term Investment-Grade Adm (VFSUX)
There are 3 members of the management team with an average tenure of 5.02 years: Daniel Shaykevich (2018), Arvind Narayanan (2019), Thanh Nguyen (2026). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg Credit 1-5 Yr TR USD index with a weighting of 100%. Vanguard Short-Term Investment-Grade Adm has 2265 securities in its portfolio. The top 10 holdings constitute 5.4% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Vanguard Short-Term Investment-Grade Adm is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Vanguard Short-Term Investment-Grade Adm has 21.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 98.7% (77.7% domestic bond, 21.1% foreign bond and 0.0% convertible bond). Vanguard Short-Term Investment-Grade Adm has 1.3% of the portfolio in cash.
Assets Under Management
The fund has $38 billion in total assets, which is above the $893 million average for the Short-Term Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
VFSUX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard Short-Term Investment-Grade Adm expense ratio is low compared to funds in the Short-Term Bond category. Vanguard Short-Term Investment-Grade Adm has an expense ratio of 0.09%, which is 86% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard Short-Term Investment-Grade Adm has a portfolio turnover rate of 73%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 134% for the Short-Term Bond category.
Recently, in the month of June 2026, Vanguard Short-Term Investment-Grade Adm returned 0.1%, which earned it a grade of C, as the Short-Term Bond category had an average return of 0.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Vanguard Short-Term Investment-Grade Adm has a trailing yield of 4.73%, which is above the 4.15% category average. The fund normally distributes its income monthly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Vanguard Short-Term Investment-Grade Adm Grades
Year to date, the fund has returned 1.0%, 0.1 percentage points better than the category, which translates into a grade of B. The fund has returned 3.9% over the past year (grade of B), 5.8% over the past three years (grade of A) and 2.4% per year over the past five years (grade of B) and 2.6% per year over the past 10 years (grade of B).
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VFSUX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| VFSUX Return (NAV) | 0.1% | 0.8% | 3.9% | 5.8% | 2.4% | 2.6% |
| VFSUX Grade | C | B | B | A | B | B |
| +/- Category | -0.0% | 0.1% | 0.4% | 0.6% | 0.2% | 0.3% |
| Short-Term Bond Avg | 0.1% | 0.8% | 3.5% | 5.2% | 2.3% | 2.3% |
| VFSUX Tax Cost Ratio | na | na | 1.9% | 1.7% | 1.4% | 1.2% |
VFSUX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| VFSUX Return (NAV) | 1.0% | 6.8% | 5.1% | 6.2% | -5.8% | -0.3% | 5.2% | 5.8% | 1.0% | 2.1% | 2.8% |
| VFSUX Grade | B | A | C | B | D | C | B | A | C | B | B |
| +/- Category | 0.1% | 1.0% | 0.2% | 0.6% | -0.7% | -0.3% | 1.0% | 1.1% | 0.2% | 0.3% | 0.3% |
| Short-Term Bond Avg | 0.9% | 5.9% | 4.9% | 5.6% | -5.0% | -0.0% | 4.2% | 4.8% | 0.7% | 1.8% | 2.5% |
| Risk Measures | |
| Standard Deviation: | 2.4% |
| Total Risk Index: | 0.19 - Low |
| Category Risk Index: | 1.21 - High |
| Category Risk Grade: | F (80% Rank) |
| Beta: | 0.40 |
| R-Squared: | 92% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Value |
| Bond Investment Style: | na Limited Sensitivity |
| Yield: | 4.7% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | None |
| Total Assets: | $55199 Mil |
| Fund Total Assets: | $38,314 Mil |
| Share Class Type: | ADM |
| Portfolio Turnover: | 73% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 8.2 years | |||
| Average Tenure: 5.0 years | |||
| Managers (Year): Shaykevich Daniel (2018), Narayanan Arvind (2019), Nguyen Thanh (2026) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 2265 |
| % in Top 10 Holdings: | 5.4% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 21.1% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 77.7% |
| Foreign Bond: | 21.1% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 1.3% |
Purchase Information
| Fund Family: | Vanguard |
| Phone Number: | 800-662-7447 |
| Website: | www.vanguard.com |
| Status: | Open |
| Inception Date: | February 12, 2001 |
| Min. Initial Purchase: | $50,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.09% ( Rating : Low ) |
| Category Average Expense Ratio (%): | 0.66% |
| Share Class: | Vanguard Short-Term Investment-Grade Inv |
| Min. Subsequent Purchase: | $ 1 |
| Min. Subsequent IRA Purchase: | $ 0 |
