Vanguard 0-3 Month Treasury Bill ETF

Frequently Asked Questions About VBIL

What does VBIL invest in?

The Vanguard 0-3 Month Treasury Bill ETF (VBIL) aims to replicate the performance of a market-value-weighted Treasury index characterized by a very short dollar-weighted average maturity. This passively managed fund specifically targets the Bloomberg US Treasury Bills 0-3 Months Index. This benchmark consists of U.S. Treasury Bills that mature within three months, deliberately excluding inflation-protected bonds, floating rate securities, and certain other types of debt. Rather than holding every component, VBIL employs a sampling approach, investing in a selection of securities designed to mirror the comprehensive index's risk factors and overall profile. Ordinarily, the fund commits at least 80%—and typically all—of its assets to either the index's constituent securities or to other investments that the advisor deems economically equivalent. To ensure accurate index tracking, the fund may also utilize debt instruments not explicitly part of the index, cash, cash equivalents, or various money market instruments like repurchase agreements and money market funds (including those affiliated with the advisor). A primary objective is to maintain a dollar-weighted average maturity consistent with the index, which is typically less than three months under normal market conditions.

What is the expense ratio of VBIL?

Vanguard 0-3 Month Treasury Bill ETF (VBIL) charges an expense ratio of 0.06%. This is the annual fee deducted from fund assets to cover management and operations.

What is VBIL's dividend yield?

VBIL's trailing-twelve-month yield is 3.50%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VBIL?

Effective duration measures VBIL's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VBIL's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of VBIL?

VBIL's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of VBIL?

Yield to maturity (YTM) is the total return you'd earn from VBIL if every bond in the portfolio is held to maturity at the current price. VBIL's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.