5 Best Bond ETFs to Buy Now

4. Vanguard Short-Term Inflation-Protected Securities Index Fund (NASDAQ:VTIP)

The Vanguard Short-Term Inflation-Protected Securities Index Fund (NASDAQ:VTIP) seeks to track an index that measures the performance of inflation-protected U.S. Treasury bonds with a remaining maturity of less than five years. The returns of the Vanguard Short-Term Inflation-Protected Securities Index Fund (NASDAQ:VTIP) are less volatile compared to the longer-term TIPS funds, and can protect investors from unexpected inflation. As of January 31, the fund’s expense ratio came in at 0.04%. The Vanguard Short-Term Inflation-Protected Securities Index Fund (NASDAQ:VTIP) has 21 bonds in its portfolio, with net assets totaling $61.70 billion. The ETF invests primarily in treasury or agency-backed bonds. 

United States Treasury Inflation Indexed Bonds make up about 7% of the total portfolio of the Vanguard Short-Term Inflation-Protected Securities Index Fund (NASDAQ:VTIP). These bonds are expected to mature on January 15, 2023, with a coupon rate of 0.125%.