• US Treasury ETFs can serve as cost-effective ballast in diversified portfolios, offering high quality income that can provide a cushion during volatile markets.
  
  
• Our new US Treasury ETFs give investors additional tools to fine tune the duration and yield targets in their portfolios.
  
  
• The three new ETFs build upon our existing range, which includes all-curve broad US Treasury and 0-1 year exposures.

ETF building blocks for yield-curve exposure: Convenient, controlled maturity buckets 

Treasuries often provide the backbone of diversified fixed income portfolios. Our trio of new maturity-bucketed Treasury ETFs, which span 1-3 year, 3-7 year and 7-10 year exposures, offer ready-made solutions for building a broad fixed income portfolio from the ground up.

For investors who may be seeking broad Treasury exposure or looking for an alternative to cash, our existing USD Treasury bond UCITS ETF and US Treasury 0-1 year UCITS ETF, respectively, are also available. Our full range now includes:

Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF

Vanguard U.S. Treasury 1-3 Year Bond UCITS ETF

Vanguard U.S. Treasury 3-7 Year Bond UCITS ETF

Vanguard U.S. Treasury 7-10 Year Bond UCITS ETF

Vanguard USD Treasury Bond UCITS ETF

Vanguard UCITS ETFs now cover the full US Treasury yield curve

Source: Vanguard, as at 15 October 2025. 

Our range of core Treasury ETFs can be combined at varying weights to reach the desired duration targets for a fixed income portfolio. Alternatively, if an investor prefers a single product that tracks the total US Treasury benchmark with no bias to a certain segment of the yield curve, our USD Treasury bond UCITS ETF provides an across-the-curve solution.

To learn more about the case for investing in US Treasuries and why ETFs are such an effective vehicle for accessing the asset class, we invite you to read our latest report, Vanguard Treasury UCITS ETFs: Discover the features of US Treasuries exposure.

Read the report.

Aligning curve exposure with investment goals

Why invest in US Treasuries?

In a higher interest rate environment, Treasuries are again playing their role as ballast in portfolios, providing both stability in the form of returns that have low correlations with equities as well as a baseline for yield expectations. At these yield levels, investors can potentially benefit from rising bond prices if rates decline, earn yield if they remain steady or even buffer losses if rates rise even more.

The before-and-after view of the Treasury yield curve below shows just how much has changed for investors since the US Federal Reserve began raising the fed funds rate from near zero, in early 2022, to where it stood at the end of the first half of 2025, between 4.25% and 4.50%¹.

While yields are attractive in ways they haven’t been for the better part of a generation, matching duration exposure with investment horizon remains a reasonable starting point for most investors. Indeed, with the outlook on rates not clear, having that kind of strategic objective becomes more important.

US Treasury yield curve, before rates started going up and as at 9 October 2025

Source: Vanguard calculations, based on data from the US Department of the Treasury (daily Treasury par yield curve rates), accessed on 9 October 2025.

We have seen significant changes in yields during the past few years. As of end-September 2025, the yield on a 2-year Treasury note stood at about 3.61%. In 2021, the Bloomberg High-Yield Corporate Index had an average yield of 2.2% and an average duration of 7 years².

Put another way, investors can now earn risk-free yield³ that’s nearly 1.5% greater than the yield provided by some of the riskiest bonds available just four years ago.

We invite you to read our recent report, which provides additional commentary on the evolution of US Treasury yields, the deep liquidity available in Treasury ETFs and much more.

Why use ETFs to invest in US Treasuries?

Successfully integrating Treasuries into diversified bond portfolios can be relatively easy compared to integrating other types of bonds. That’s down to the relative liquidity of the Treasuries market compared to other bond markets.

Treasury ETFs can potentially make it even easier for investors to gain access to the asset class. Moreover, many Treasury ETFs are available at relatively low cost – a critical benefit for long-term investors.

Benefits of using ETFs for US Treasury exposures:

• Liquidity: The underlying market is extremely liquid, which makes creating US Treasury ETF shares relatively easy. More relevant to end-investors, buying and selling ETFs in the secondary market can be done with dependably tight trading spreads. Liquidity may also be easier to find in the ETF universe than via trades on individual Treasuries on the secondary market, especially for larger trades.
  
  
• Ease of use: Compared with building and managing a bond ladder of Treasuries, owning a low-cost, tight-spread Treasury ETF makes managing predictable income streams alongside duration risk a much more efficient process. Individual, short-, medium- or long-term Treasury ETFs keep their exposures tightly targeted – a quality that could help control duration at the portfolio level with just a click.
  
  
• A viable alternative to laddering: While laddering individual bonds has its merits, the costs associated with reinvestment of proceeds into purchasing new bonds can be expensive and time consuming. If a Treasury bond matures and needs to be rolled into other Treasuries, the associated reinvestment risk could be higher than reinvesting proceeds using Treasury ETFs⁴. The diversification inherent in ETFs lowers that risk, since assets are spread across the maturity spectrum.

Partner with Vanguard, a leader in fixed income indexing

With more than $2.6 trillion in assets under management and nearly 60 employees across the globe focused on fixed income indexing, the Vanguard Fixed Income Group aims to replicate a benchmark’s performance to the highest degree possible with a focus on reducing cost and tracking error⁵.

Vanguard’s fixed income portfolio managers and traders collaborate with internal risk and credit teams to assess both issuers and individual bonds, and to optimise exposures relative to the benchmark.

In addition, Vanguard’s size and scale provide a number of benefits to investors:

• Competitive expense ratios and, on a relative basis, a larger number of bonds in portfolios, allowing for greater coverage across the bond market.
  
  
• Favourable new-deal allocations and best execution from bond dealers.
  
  
• Participation in primary issuances, allowing for a potentially more cost-effective way to obtain bonds that can be expensive to acquire in the secondary market.
  
  

¹ Source: US Federal Reserve, as at 9 October 2025. 

² Source: Bloomberg, as at 30 September 2025.

³ “Risk-free yield" refers to the return (interest or yield) investors can expect from an asset that is considered to have negligible risk of default. In global finance, US Treasury securities—such as Treasury bills, notes and bonds—are widely regarded as the benchmark for "risk-free" assets. This is because they are backed by the full faith and credit of the US government, which has an extremely low likelihood of defaulting on its debt.

⁴ Reinvestment risk occurs when you have to reinvest a maturing bond and current yields are lower than the maturing bond.

⁵ Source for assets under management and fixed income indexing employee count: Vanguard, as at 30 June 2025.
 

Investment risk information

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

ETF shares can be bought or sold only through a broker. Investing in ETFs entails stockbroker commission and a bid-offer spread which should be considered fully before investing.

Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.

The Funds may use derivatives in order to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Fund's net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.

Some funds invest in securities which are denominated in different currencies. Movements in currency exchange rates can affect the return of investments.

For further information on risks please see the “Risk Factors” section of the prospectus on our website.

Important information

This is a marketing communication.

For professional investors only (as defined under the MiFID II Directive) investing for their own account (including management companies (fund of funds) and professional clients investing on behalf of their discretionary clients). Not to be distributed to the public.

The information contained herein is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information is general in nature and does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of shares and/or units of, and the receipt of distribution from any investment.

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For investors in Ireland domiciled funds, a summary of investor rights can be obtained and is available in English, German, French, Spanish, Dutch and Italian.

The Central Bank of Ireland has granted authorisation for the Vanguard USD Treasury Bond UCITS ETF to invest up to 100% of net assets in different Transferable Securities and Money Market Instruments issued or guaranteed by any EU Member State, its local authorities, non-EU Member States or public international bodies of which one or more EU Member States are members. The Vanguard USD Treasury Bond UCITS ETF invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the US.

The Central Bank of Ireland has granted authorisation for the Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF to invest up to 100% of net assets in different Transferable Securities and Money Market Instruments issued or guaranteed by any EU Member State, its local authorities, non-EU Member States or public international bodies of which one or more EU Member States are members. The Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the US.

The Central Bank of Ireland has granted authorisation for the Vanguard U.S. Treasury 1-3 Year Bond UCITS ETF to invest up to 100% of net assets in different Transferable Securities and Money Market Instruments issued or guaranteed by any EU Member State, its local authorities, non-EU Member States or public international bodies of which one or more EU Member States are members.  The Vanguard U.S. Treasury 1-3 Year Bond UCITS ETF invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the US.

The Central Bank of Ireland has granted authorisation for the Vanguard U.S. Treasury 3-7 Year Bond UCITS ETF to invest up to 100% of net assets in different Transferable Securities and Money Market Instruments issued or guaranteed by any EU Member State, its local authorities, non-EU Member States or public international bodies of which one or more EU Member States are members. The Vanguard U.S. Treasury 3-7 Year Bond UCITS ETF invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the US.

The Central Bank of Ireland has granted authorisation for the Vanguard U.S. Treasury 7-10 Year Bond UCITS ETF to invest up to 100% of net assets in different Transferable Securities and Money Market Instruments issued or guaranteed by any EU Member State, its local authorities, non-EU Member States or public international bodies of which one or more EU Member States are members.  The Vanguard U.S. Treasury 7-10 Year Bond UCITS ETF invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the US. For Dutch investors only: The fund(s) referred to herein are listed in the AFM register as defined in section 1:107 Dutch Financial Supervision Act (Wet op het financieel toezicht).For details of the Risk indicator for each fund listed, please see the fact sheet(s) which are available from Vanguard via our website.

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