Vanguard has listed a new pair of fixed income index ETFs on the Nasdaq today – the Vanguard Ultra-Short Treasury ETF (BGUS) Ultra-Short Treasury ETF (VGUS) and the Vanguard 0-3 Month Treasury Bill ETF.
These funds provide exposure to the U.S. Treasury securities with short durations and low volatility, offering tight bid/ask spreads. They aim to fill the gap between money market funds and ultra-short-term bond funds, according to Vanguard.
Both ETFs are managed by Josh Barrickman, co-head of Vanguard’s Fixed Income Group Indexing in the Americas.
VGUS tracks the Bloomberg Short Treasury Index, which includes U.S. Treasury securities with less than 12 months to maturity. VBIL tracks the Bloomberg US Treasury Bills 0-3 Months Index. Both ETFs have an expense ratio of just 0.07%.
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“Advisors recently told VettaFi of their preference for ETFs to gain fixed income exposure. It’s great to see Vanguard expand its lineup to support the more conservative end of asset allocation strategies,” said Todd Rosenbluth, head of research at VettaFi.
Vanguard has assets under management of more than $3 trillion invested across its lineup of nearly 90 ETFs alone. This includes 21 other fixed income ETFs. The largest of those bond funds is the $123.7 billion Vanguard Total Bond Market ETF (BND ). Fixed income ETFs like these provide investors with exposure to bonds and other debt securities in a cost-effective way, adding diversification and stability to a portfolio.
For more news, information, and analysis, visit the Fixed Income Channel.
