There's nothing inherently wrong with short term bond funds. Logic would indicate it's going to be the place to be that will limit volatility. Just understand that while your downside is limited, so too will be your upside. Further, in the short term, it's very possible you will see your fund position go down in value if for some reason there is a spike in interest rates. The amount the fund goes down could well be in excess of the interest/dividends received.
I don't believe you need to be much concerned with defaults, as you point out it is a high-quality bond fund. Those bonds which are high quality are backed by companies that are (relatively) strong, and with a short term maturity, if necessary, they are in a position to refinance with new debt to pay off whatever is coming due.