Vanguard has expanded its product suite with short-duration and low-volatility US Treasury index ETFs.
The Ultra-Short Treasury ETF (VGUS) will track the Bloomberg Short Treasury Index, which covers US Treasury bills, notes and bonds with less than 12 months until maturity. The 0-3 Month Treasury Bill ETF (VBIL) will track Bloomberg’s US Treasury Bills 0-3 month index.
Sara Devereux, global head of Vanguard Fixed Income Group, commented: “These new ultra-short Treasury products serve as valuable tools for advisors and investors to build more precise and flexible portfolios, bridging the gap between money market funds and existing ultra-short-term bond offerings in the ETF wrapper.”
Both VGUS and VBIL are expected to have tight bid-ask spreads, with an anticipated expense ratio of 0.07%. They will be managed by Josh Barrickman, Vanguard’s co-head of fixed income group indexing in the Americas.
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