Vanguard has unveiled two new fixed-income index ETFs designed to meet investors’ short-term liquidity needs: the Vanguard Ultra-Short Treasury ETF (VGUS) and the Vanguard 0-3 Month Treasury Bill ETF (VBIL). These products, which will be managed by Josh Barrickman, Co-Head of Vanguard’s Fixed Income Group Indexing in the Americas, expand the firm’s range of investment options.
“These new ultra-short Treasury products offer valuable solutions for advisors and investors looking to build more tailored and flexible portfolios, bridging the gap between money market funds and current ultra-short-term bond ETFs,” said Sara Devereux, Global Head of Vanguard Fixed Income Group. “VGUS and VBIL reflect our ongoing commitment to delivering diverse, low-cost products backed by Vanguard’s renowned management expertise.”
Designed to serve as part of investors’ liquidity toolkit, the new ETFs offer exposure to U.S. Treasury securities with short durations and low volatility. Both are expected to have tight bid-ask spreads. VGUS will track the Bloomberg Short Treasury Index, which includes U.S. Treasury Bills, Notes, and Bonds with maturities under 12 months, while VBIL will follow the Bloomberg US Treasury Bills 0-3 Months Index. With an estimated expense ratio of just 0.07%, both ETFs stand out as cost-effective leaders in their categories.
Vanguard Fixed Income Group, with over $2.5 trillion in global assets under management, will oversee the new ETFs. The group has a long history of managing index funds, having launched the world’s first bond index fund, Vanguard Total Bond Market Index Fund, in 1986. Vanguard’s fixed-income expertise is reinforced by advanced technology and investment processes to ensure precise tracking of its index funds and ETFs.
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