VGUS

📎 Investment Objective

The Vanguard Ultra-Short Treasury ETF seeks to provide current income while maintaining a low-risk profile and preserving capital.

✨ Key Features

• Invests in short-term U.S. Treasury securities to provide stability and low risk
• Maintains a very short average maturity, typically less than one year, to reduce interest rate sensitivity
• Extremely low expense ratio of 0.00%, making it a cost-effective option for investors
• Designed as a cash management or short-term fixed income allocation within a diversified portfolio

⚠️ Primary Risks

• Interest rate risk: As short-term interest rates rise, the value of the ETF's holdings may decline
• Credit risk: Though investing in Treasuries, there is still a small risk of default by the U.S. government
• Liquidity risk: The ETF may have difficulty selling its holdings in times of market stress
• Reinvestment risk: As the ETF's holdings mature, the proceeds may need to be reinvested at lower yields

👤 Best For

The Vanguard Ultra-Short Treasury ETF is best suited for investors seeking a very low-risk, stable investment for their cash holdings or short-term fixed income allocation. It may be appropriate as a temporary parking spot for funds or as a risk-averse component of a diversified portfolio.