Vanguard has just launched seven new bond exchange traded funds today.  We are seeing very thin trading volume, and that will be the single biggest benchmark used for whether or not these become a success or whether they become just another slate of ‘me-too’ ETF offerings.

Vanguard Short-Term Government Bond Index Fund (NASDAQ: VGSH) tracks the U.S. 1–3 Year Government Float Adjusted Index

Vanguard Intermediate-Term Government Bond Index Fund (NASDAQ: VGIT) tracks the U.S. 3-10 Year Government Float Adjusted Index

Vanguard Long-Term Government Bond Index Fund (NASDAQ: VGLT) tracks the U.S. Long Government Float Adjusted Index

Vanguard Short-Term Corporate Bond Index Fund (NASDAQ: VCSH) tracks the U.S. 1–5 Year Corporate Index

Vanguard Intermediate-Term Corporate Bond Index Fund (NASDAQ: VCIT) tracks the U.S. 5–10 Year Corporate Index.

Vanguard Long-Term Corporate Bond Index Fund (NASDAQ: VCLT) tracks the U.S.Long Corporate Index.

Vanguard Mortgage-Backed Securities Index Fund (NASDAQ: VMBS) tracks the U.S. MBS Float Adjusted Index.

We’d offer more insight here, except that Vanguard has been very late to the ETF party.  This probably also wasn’t exactly the best week to try launching new bond funds as investors and traders are in the office on Monday and Tuesday, but their feet will mostly be out the door on both sides of Thanksgiving this Wednesday and Friday.

JON C. OGG

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