Vanguard launched new ETFs for U.S. T-Bills in February 2025 – VBIL and VGUS. I briefly summarize them here.
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After weirdly previously having no products for Treasury Bills and hearing investors’ demands for short-term liquidity, Vanguard has finally launched 2 new ETFs for them.
“VGUS and VBIL can be a solution for those who rely on ultra-short bond funds and ETFs to manage their liquidity needs,” said Daniel Reyes, Global Head of Vanguard Portfolio Review Department. “These new ultra-short Treasury ETFs fill the gap between Vanguard’s money market funds and our existing ultra-short-term bond offerings, enabling investors to build portfolios with greater precision using Vanguard ETFs.”
VBIL – Vanguard 0-3 Month Treasury Bill ETF
VBIL is the Vanguard 0-3 Month Treasury Bill ETF. As the name suggests, it provides exposure to U.S. Treasury Bills that mature in 3 months or less. This makes it more of a true cash equivalent than slightly longer T-bills provided by the other fund VGUS.
VBIL seeks to track the Bloomberg 0-3M Treasury Bill Index, an index tracked by other popular T-bills ETFs like SGOV and BIL, and has an expense ratio of 0.07%, making it pretty competitive in this space.
VGUS – Vanguard Ultra-Short Treasury ETF
VGUS is the Vanguard Ultra-Short Treasury ETF. The name might have you thinking this one is using short bonds like their other fund VGSH, but this one is just T-bills with maturities less than 1 year, making it slightly longer than VBIL.
VBIL seeks to track the Bloomberg Short Treasury Index and has the same fee of 0.07%.
What do you think of these new T-bills funds from Vanguard? Let me know in the comments.
Disclosures: None.
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