The Vanguard Long-Term Treasury ETF (VGLT) is an exchange-traded fund designed to track the performance of long-term U.S. Treasury securities. The ETF is managed by Vanguard and trades under the ticker VGLT on the Nasdaq.

Classified as a fixed-income ETF, the fund invests exclusively in U.S. Treasury securities with remaining maturities of more than 10 years. Its strategy provides exposure to long-term U.S. government debt, one of the world's primary benchmarks for high-quality fixed-income investments.

The ETF follows a passive management approach and seeks to replicate the performance of the Bloomberg U.S. Long Treasury Index, a benchmark composed of long-term U.S. Treasury securities issued by the U.S. federal government.

Diversification and sector exposure

VGLT provides exposure primarily associated with:

• U.S. Treasury securities.

• Long-term fixed income.

• Sovereign bonds.

• U.S. government debt.

• High credit quality.

• Long duration.

• Fixed-income markets.

• Interest rates.

The portfolio consists exclusively of long-term U.S. Treasuries, providing very high credit quality because the securities are backed by the U.S. government.

The ETF's performance is highly sensitive to movements in long-term interest rates. Generally, declining Treasury yields increase bond prices, while rising yields tend to reduce their market value.

Structure and costs

VGLT shares trade on the secondary market on the Nasdaq during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF's market price with its net asset value (NAV).

The fund carries a low expense ratio, consistent with Vanguard's indexing philosophy, and does not apply a performance fee. Interest income generated by the Treasury securities is distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The Vanguard Long-Term Treasury ETF was launched in 2009 to provide efficient, exchange-traded access to the U.S. long-term Treasury market.

Since inception, the fund has reflected multiple interest-rate cycles, inflationary environments, and shifts in monetary policy that have influenced long-term U.S. government bond yields.

In recent years, Federal Reserve policy decisions, changing inflation expectations, and fluctuations in global demand for U.S. Treasuries have remained key drivers of the ETF's performance.

Additional Information

Vanguard Long-Term Treasury ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $10.32 billion.

Over the past 12 months, Vanguard Long-Term Treasury ETF recorded a return of -1.57%, with its price trading between $52.75 and $58.38 during the same period.

The ETF is traded under the ticker VGLT.