New Treasury ETFs Target Liquidity As Vanguard Expands Fixed-Income Lineup

Vanguard has once again broadened its fixed-income offerings, rolling out a pair of new Treasury-focused ETFs on the Nasdaq. The Vanguard Ultra-Short Treasury ETF VGUS and the Vanguard 0-3 Month Treasury Bill ETF VBIL are low-cost index ETFs that aim to manage liquidity and short-term fixed-income exposure while keeping costs minimal.

VGUS will track the Bloomberg Short Treasury Index, which includes U.S. Treasury securities maturing in under a year. Meanwhile, VBIL will follow the Bloomberg US. Treasury Bills 0-3 Months Index, providing exposure to the shortest-maturity Treasury bills available. Both ETFs have an estimated expense ratio of just 0.07%, reinforcing Vanguard's commitment to cost-effective investing.

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"The goal is to provide investors with a more diverse product range and complement our existing lineup of active and passive funds," said Sara Devereux, Global Head of Vanguard Fixed Income Group.

With short durations and low volatility, VGUS and VBIL aim to bridge the gap between money market funds and ultra-short-term bond funds. Devereux touts the new funds as "valuable tools for advisors and investors to build more precise and flexible portfolios."

Vanguard is already a giant in the ETF space, with more than $2.5 trillion in assets under management across nearly 90 ETFs. Fixed-income products make up a significant portion of that, with 21 other bond ETFs, including the $123.7 billion Vanguard Total Bond Market ETF BND.

The company has long been a leader in passive fixed-income investing, dating back to the launch of the first bond index fund in 1986.

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