The Vanguard USD Treasury Bond UCITS ETF (VUTA) is an Ireland-domiciled fixed-income ETF managed by Vanguard. VUTA represents the fund's USD accumulating share class traded in British pounds on the London Stock Exchange.

The fund seeks to track the Bloomberg Global Aggregate US Treasury Float Adjusted Index, a benchmark comprising fixed-rate U.S. dollar-denominated government bonds issued by the U.S. Treasury.

VUTA follows a passive investment strategy and uses physical replication through representative sampling. The fund invests directly in a selection of securities designed to closely reflect the characteristics and performance of its benchmark.

The benchmark covers fixed-rate U.S. Treasury securities across different maturities, providing broad exposure to the U.S. government bond yield curve. Its composition is periodically updated to reflect changes in the universe of eligible securities.

Composition / Exposure Profile

VUTA's portfolio primarily consists of:

• U.S. Treasury securities.

• U.S. dollar-denominated sovereign debt.

• Government bonds across different maturities.

• Fixed-rate debt securities.

Geographic exposure is concentrated in the United States, as the benchmark consists of securities issued by the U.S. government. By covering different maturities, the fund provides exposure across different segments of the U.S. Treasury yield curve.

Although U.S. Treasury securities carry low credit risk, their market value remains sensitive to changes in interest rates. Federal Reserve monetary policy, inflation expectations, and changes in yields required by investors can affect bond prices and, consequently, the ETF's performance.

Structure and Costs

The fund and share class have the U.S. dollar as their base currency. On the London Stock Exchange, the accumulating share class trades in GBP under VUTA and in USD under VDTA.

VUTA is not currency hedged. Trading the shares in British pounds therefore does not eliminate the underlying economic exposure to the U.S. dollar.

The ETF has ongoing charges of 0.07% per year, uses physical replication through representative sampling, and is domiciled in Ireland. It operates as part of Vanguard Funds plc under the UCITS framework.

VUTA follows an accumulating income policy. Interest income generated by the portfolio is therefore reinvested within the fund rather than periodically distributed to shareholders.

History and Evolution of the ETF

The Vanguard USD Treasury Bond UCITS ETF USD Accumulation was launched in 2019 to provide broad exposure to the U.S. Treasury market through a single portfolio.

Since its launch, the fund has maintained a passive strategy linked to the Bloomberg Global Aggregate US Treasury Float Adjusted Index, tracking fixed-rate U.S. government bonds across different maturities.

Throughout its history, VUTA's performance has primarily reflected movements in the U.S. Treasury yield curve, Federal Reserve monetary policy decisions, and changes in inflation expectations.

Additional Information

Vanguard USD Treasury Bond UCITS ETF USD Acc (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $1.41 billion.

Over the past 12 months, Vanguard USD Treasury Bond UCITS ETF USD Acc recorded a return of -2.18%, with its price trading between $26.40 and $36.61 during the same period.

The ETF is traded under the ticker VUTA.