VGLT

📎 Investment Objective

The Vanguard Long-Term Treasury ETF seeks to track the performance of a market-weighted Treasury index with a long-term maturity focus.

✨ Key Features

• Focuses on long-term U.S. Treasury bonds with maturities over 10 years
• Seeks to track the performance of a market-weighted Treasury index
• Employs a low-cost, passive management approach
• Provides broad exposure to the long-term U.S. Treasury market

⚠️ Primary Risks

• Interest rate risk: The value of the ETF's holdings may decline due to rising interest rates
• Concentration risk: The ETF is concentrated in U.S. Treasury securities, making it vulnerable to factors affecting that sector
• Liquidity risk: The long-term Treasury market may experience periods of lower liquidity, which could impact the ETF's ability to sell holdings
• Reinvestment risk: As Treasury bonds mature, the ETF may need to reinvest at lower prevailing interest rates

👤 Best For

The Vanguard Long-Term Treasury ETF may be suitable for investors seeking exposure to the long-term U.S. Treasury market as part of a diversified fixed-income portfolio. It may be particularly appealing to investors with a conservative risk profile who are looking for a low-cost, passively managed option for their long-term Treasury allocation.