The Vanguard UK Short-Term Investment Grade Bond Index fund tracks the Barclays Global Aggregate 500MM UK Non-Government 1-5 Year Float Adjusted Bond index.
It has both income and accumulation share classes and has a total expense ratio of 0.2 per cent.
Managing director Tom Rampulla said: “This fund enables investors to diversify their portfolios further with short-term bonds of investment grade-rated credit quality.
“By including government-related and securitised issues as well as corporates, it’s designed to offer higher credit quality and lower volatility than a ‘pure’ corporate bond portfolio. This should make it appealing to investors who turn to fixed income as a way of controlling volatility.”