The Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF (USD) Accumulating (VDST) is an Ireland-domiciled fixed-income ETF managed by Vanguard and traded on the London Stock Exchange.

The fund seeks to track the performance of the Bloomberg Short Treasury Index, a benchmark composed of U.S. dollar-denominated Treasury securities with remaining maturities of less than one year.

VDST provides exposure to ultra-short-term U.S. sovereign fixed income. The fund follows a passive investment strategy and physically acquires a representative sample of securities included in its benchmark. It operates under the UCITS framework and follows an accumulating income policy.

The Bloomberg Short Treasury Index tracks U.S. dollar-denominated, fixed-rate securities issued by the U.S. government. The benchmark includes Treasury bills, notes, and bonds with remaining maturities between one month and one year.

Composition / Exposure Profile

VDST primarily provides exposure to:

• U.S. Treasury bills.

• Treasury notes and bonds with remaining maturities of less than one year.

• U.S. dollar-denominated sovereign securities.

• Ultra-short-term government fixed income.

The fund's geographic exposure is concentrated in the United States because eligible securities are issued by the U.S. Treasury.

By focusing on securities with remaining maturities of less than one year, the fund has relatively low sensitivity to interest-rate movements compared with longer-term bonds. Its performance is primarily influenced by conditions in the U.S. short-term interest-rate market.

Structure and Costs

VDST trades in U.S. dollars on the London Stock Exchange. The same share class also has listings on other exchanges and in other trading currencies, while the fund's base currency is the U.S. dollar.

The fund has an ongoing charges figure of 0.05% per year and uses physical acquisition through representative sampling. VDST is domiciled in Ireland, operates under the UCITS framework, and is part of Vanguard Funds plc.

VDST is an accumulating share class, meaning interest and other income generated by its holdings are reinvested within the fund rather than distributed periodically to shareholders.

History and Evolution of the ETF

The Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF (USD) Accumulating (VDST) was launched in 2020 by Vanguard to provide exposure to ultra-short-term U.S. Treasury securities.

Since its launch, the fund has maintained a passive strategy linked to the Bloomberg Short Treasury Index, focusing its portfolio on U.S. government securities with remaining maturities between one month and one year.

Throughout its history, VDST's performance has primarily reflected conditions in the U.S. fixed-income market and changes in short-term interest rates.

Additional Information

Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF (USD) Accumulating (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $1.69 billion.

Over the past 12 months, Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF (USD) Accumulating recorded a return of 3.63%, with its price trading between $57.64 and $59.71 during the same period.

The ETF is traded under the ticker VDST.