Vanguard to Offer New Options for Meeting Investors' Short-Term Liquidity Needs

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Nov 22, 2024, 16:10 ET

VALLEY FORGE, Pa., Nov. 22, 2024 /PRNewswire/ -- Today, Vanguard announced plans to launch two new ETFs in the first quarter of 2025 intended to help investors manage their short-term liquidity needs. Vanguard Ultra-Short Treasury ETF (VGUS) and Vanguard 0-3 Month Treasury Bill ETF (VBIL) are index ETFs that will offer low-cost Treasury exposure for individual investors and financial advisors.

Both new ETFs can serve as part of an investor's liquidity tool kit, as both will offer exposure to U.S. Treasury securities, have short durations and low volatility, and are expected to have tight bid-ask spreads. VGUS will hold Treasuries with maturities less than 12 months, while VBIL will focus on Treasury bills maturing in three months or less. VGUS and VBIL are both expected to launch with an expense ratio of 0.07%, which will position each ETF as the low-cost leader in its respective category.

"VGUS and VBIL can be a solution for those who rely on ultra-short bond funds and ETFs to manage their liquidity needs," said Daniel Reyes, Global Head of Vanguard Portfolio Review Department. "These new ultra-short Treasury ETFs fill the gap between Vanguard's money market funds and our existing ultra-short-term bond offerings, enabling investors to build portfolios with greater precision using Vanguard ETFs."

The new ETFs will be advised by Vanguard Fixed Income Group, which for more than 40 years has distinguished itself with deep investment capabilities, disciplined index tracking processes, and rigorous risk management techniques. Vanguard Fixed Income Group has been managing index funds since 1986, when it launched Vanguard Total Bond Market Index Fund, the world's first bond index fund. Its world-class fixed income indexing talent is supported by sophisticated technology and investment processes that enable tight tracking for Vanguard's index funds and ETFs.

About Vanguard
Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to tens of millions of individual investors around the globe—directly, through workplace plans, and through financial intermediaries. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit vanguard.com.

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All investing is subject to risk, including the possible loss of the money you invest.

Bond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to decline.

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SOURCE Vanguard