Fund info

Vanguard Short-Term Federal Fund Investor Shares is an actively managed mutual fund focused on generating current income with limited price volatility. The fund primarily invests in short‑term U.S. government securities, including obligations issued or guaranteed by federal agencies and instrumentalities, with a mandate to keep at least 80% of assets in such bonds and to maintain a dollar‑weighted average maturity of roughly one to four years. Its portfolio typically includes Treasury notes and agency debt from issuers such as Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Federal Farm Credit Banks, and related entities. Classified in the short government category, the strategy emphasizes high credit quality with constrained interest rate sensitivity, aiming to provide stability relative to longer‑duration bond funds. Key structural features include a low expense ratio and monthly distributions, reflecting its income orientation and cost efficiency. Launched in 1987 and managed by Vanguard, the fund plays a role as a conservative fixed income allocation, offering liquidity and capital preservation characteristics within diversified portfolios.