The average duration on VTEB’s holdings is 4.9 years and the average stated maturity is 13.9 years. Credit risk is minimal with this Vanguard fund as 91.50% of its holdings are rated AAA, AA or A. VTEB yields 2.24%.
“The fund has produced a decent return thanks to its durable cost advantage. From its launch in August 2015 through December 2018 it beat the category average by 24 basis points annually, which was better than two thirds of its competitors. Its risk-adjusted performance over this period, as measured by Sharpe ratio, also landed in the top third of the category,” according to Morningstar.
The research firm has a Silver rating on VTEB.
For more information on the fixed-income space, visit our bond ETFs category.
