Vanguard Ultra-Short Treasury ETF (VGUS)

Vanguard Ultra-Short Treasury ETF (VGUS) is an index-based exchange-traded fund that invests in U.S. Treasury securities with very short maturities, generally of less than one year. It seeks to track an index of short-dated Treasury obligations.

Because its holdings are direct obligations of the U.S. government and mature quickly, the fund has low interest rate sensitivity, and its income tends to follow changes in short-term rates. It is designed for cash management and short-term reserves. Holdings mature and are replaced on a continuous basis, so the fund's yield adjusts relatively quickly when short-term rates move. Because it holds only Treasury securities, credit risk is minimal, and interest from Treasuries is generally exempt from state and local income taxes.

The fund is managed by The Vanguard Group, headquartered in Malvern, Pennsylvania.