Vanguard USD Treasury Bond ETF

The Vanguard USD Treasury Bond ETF is an exchange-traded fund that aims to track the performance of a broad portfolio of U.S. dollar-denominated Treasury bonds. This fund follows a passive management strategy by investing in a representative sample of fixed-rate U.S. government bonds, closely mirroring the performance of the Bloomberg Global Aggregate US Treasury Float Adjusted Index. Comprising hundreds of U.S. Treasury securities, the ETF targets bonds with maturities greater than one year, typically maintaining a high average credit quality of AA+ and an average maturity around seven to eight years. The primary function of this fund is to offer diversified exposure to U.S. government debt, which plays a key role in the global financial system as a benchmark for safety and liquidity. It serves the needs of institutional and professional investors seeking predictable income streams and credit stability, making it a foundational component in many fixed-income portfolios.