Reasons for Upgrading the Vanguard Ultra-Short Bond ETF

Manager Changes Impact Bond ETFs

The Vanguard Ultra-Short Bond ETF has received a boost in its ratings, moving from neutral to bronze, thanks to its new manager. This shift comes with Tan Nguyen, who took over from Dan Sheikevich in January 2025. Nguyen, a Vanguard employee since 2013, brings significant experience in asset-backed securities, having worked for nine years with investment-grade companies. Interestingly, while Sheikevich is now leading Vanguard’s emerging market team, Nguyen’s expertise aligns better with the core focus of the fund, which revolves around ABS and investment grade securities.

Nguyen will work alongside fund veteran Arvind Narayanan, who plays a crucial role in the investment grade corporate sector team—comprising seven traders and 22 analysts. Narayanan has reportedly fostered better collaboration within the team. Additionally, Vanguard’s internal risk specialists and economists provide further resources such as liquidity management support, which is beneficial for the fund.

Index Changes Improve Other ETF Ratings

The SPDR Nuveen Ice Municipal Bond ETF has also seen a positive change after selecting a new index, making it a more accurate reflection of the municipal bond market. Its process pillar ratings have increased from average to above average, and its medalist rating now stands at bronze, up from neutral.

Since switching its benchmark in June 2025 to a broad, AMT-free local index, the ETF’s investment scope has significantly expanded. The previous limitations, which excluded bonds or facilities tied to below-AA valuations, have been lifted. Now, the fund only holds a modest 15% allocation in below-AA valued bonds, noticeably lower than the category average of 46%. This positions it better among other broader Muni-market index funds, leaning towards more liquid and high-quality bonds. The ETF’s duration, averaging 6.8 years, is also in line with typical timeframes for intermediate to long-term municipal categories.

Challenges for T. Rowe Price New Asia Fund

Concerns regarding stock selection by T. Rowe Price’s new Asian manager, Anh Lu, have resulted in downgrades in ratings from above average to average. The fund’s current medalist rating remains at bronze, which is a significant shift.

Issues around stock performance, particularly in China, have led to underwhelming results since 2022. Some of Lu’s transactions have come off as reactive and short-term, which seems at odds with the fund’s longer investment strategy. Additionally, the portfolio has missed out on several high-performing stocks from the region. Despite the ongoing support from their team of 25 analysts, turnover has been high; ten analysts have departed in the last five years, particularly those specializing in China.