Vanguard Ultra-Short Treasury ETF

Frequently Asked Questions About VGUS

What does VGUS invest in?

This exchange-traded fund (ETF) aims to mirror the investment performance of a market-weighted U.S. Treasury index, which is characterized by an exceptionally short dollar-weighted average maturity. Its fundamental investment strategy is an indexing approach, specifically crafted to follow the Bloomberg Short Treasury Index. This benchmark index is comprised of debt instruments issued by the U.S. government that have maturities spanning up to 12 months. It deliberately omits certain types of bonds, such as inflation-protected securities, floating-rate debt, and a few other specific categories. Rather than holding every security within the index, the fund employs a sampling technique. This means it invests in a diverse selection of securities that, when considered collectively, closely replicate the complete index's principal risk factors and other defining characteristics. Under typical operating conditions, the fund allocates the vast majority, and certainly no less than 80%, of its assets to either the securities directly forming the Index or to other investments that the advisor deems to possess virtually identical economic traits. A key objective for the fund is to maintain a dollar-weighted average maturity consistent with that of its benchmark, which, under normal circumstances, is anticipated to fall between 1 and 12 months.

What is the expense ratio of VGUS?

Vanguard Ultra-Short Treasury ETF (VGUS) charges an expense ratio of 0.07%. This is the annual fee deducted from fund assets to cover management and operations.

What is VGUS's dividend yield?

VGUS's trailing-twelve-month yield is 3.59%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VGUS?

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

What is the credit quality of VGUS?

VGUS'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 VGUS?

Yield to maturity (YTM) is the total return you'd earn from VGUS if every bond in the portfolio is held to maturity at the current price. VGUS'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.