Vanguard ETF Since Friday a new exchange traded fund from Vanguard is tradable on London Stock Exchange….
The Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF aims to track the the performance of the Bloomberg Barclays Short Treasury Index.
Objectives and investment policy
- The Fund employs a passive management – or indexing – investmentapproach, through physical acquisition of securities, and seeks to track the performance of the Bloomberg Barclays Short Treasury Index.
- The Fund invests in a portfolio of fixed-rate, short-term US Dollar-denominated US Treasury securities that so far as possible andpracticable consists of a representative sample of the componentsecurities of the Index.
- The Index measures the performance of US dollar denominated bondspaying a fixed rate of interest issued by the US government.
- Bonds in the Index have maturities of less than one year and include USTreasury bills, notes and bonds with remaining maturities between onemonth and one year.
- To a lesser extent the Fund may invest in similar types of governmentbonds outside the Index.
- The Fund may use derivatives in order to reduce risk or cost and/orgenerate extra income or growth. The use of derivatives could increaseor reduce exposure to underlying assets and result in greater fluctuationsof the Fund’s net asset value. A derivative is a financial contract whosevalue is based on the value of a financial asset (such as a share, bond,or currency) or a market index.
- The base currency of the Fund is USD.2The Fund may engage in short term secured lending of its investmentsto certain eligible third parties. This is used as a means of generatingadditional income and to off-set the costs of the Fund.
- The Fund is appropriate for short-term investment.
- This share class is an accumulating share class and the Directors do not intend to declare a dividend. Income will be reinvested and reflected inthe price of shares in the Fund.
Name : Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF
ISIN : IE00BLRPPV00
Asset Class : Bond
Total Expense Ratio : 0.07%
Distribution policy : Accumulation
Reference index : Bloomberg Barclays Short Treasury Index