The Vanguard 0-3 Month Treasury Bill ETF (VBIL) is an exchange-traded fund designed to provide exposure to U.S. Treasury securities with remaining maturities ranging from zero to three months. The ETF is managed by Vanguard and trades under the ticker VBIL on the Nasdaq.

Classified as a fixed income ETF, the fund invests primarily in U.S. Treasury Bills (T-Bills) with remaining maturities of up to three months. Its strategy is designed to provide capital preservation, high liquidity, and exposure to the shortest segment of the U.S. Treasury yield curve.

The ETF follows a passive management approach and seeks to track the performance of an index composed of short-term U.S. Treasury Bills, providing investors with exposure to securities that carry minimal credit risk and substantial liquidity.

Diversification and sector exposure

VBIL provides exposure primarily associated with:

• U.S. Treasury Bills.

• U.S. Treasury securities.

• Short-term fixed income.

• Zero- to three-month maturities.

• U.S. government debt.

• Highly liquid assets.

• Low interest rate sensitivity.

• Capital preservation.

The portfolio consists of securities issued by the U.S. Department of the Treasury, which are generally regarded as among the lowest-credit-risk investments in global financial markets.

The ETF's performance generally reflects changes in yields on short-term Treasury Bills, with returns largely influenced by Federal Reserve monetary policy and short-term interest rates.

Structure and costs

VBIL shares trade on the secondary market on the Nasdaq during regular trading hours. Share creation and redemption occur through authorized participants, helping keep the ETF's market price aligned with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Interest income generated by the portfolio's Treasury holdings may be distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The Vanguard 0-3 Month Treasury Bill ETF was launched to provide investors with an efficient way to access ultra-short-term U.S. Treasury Bills through a single exchange-traded investment.

Since inception, the fund has sought to track the performance of U.S. Treasury Bills with remaining maturities between zero and three months, serving as a vehicle for cash management, capital preservation, and short-term allocations.

Over time, the ETF's performance has primarily reflected changes in Federal Reserve monetary policy and movements in short-term U.S. interest rates.

Additional Information

Vanguard 0-3 Month Treasury Bill ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $10.09 billion.

Over the past 12 months, Vanguard 0-3 Month Treasury Bill ETF recorded a return of 3.51%, with its price trading between $75.31 and $75.73 during the same period.

The ETF is traded under the ticker VBIL.