Vanguard is expanding its fixed income ETF lineup with three new offerings designed to meet the growing demand for diversified bond exposure among advisors and their clients. The newly launched funds are: Vanguard Government Securities Active ETF (ticker: VGVT), Vanguard Total Treasury ETF (VTG), and Vanguard Total Inflation-Protected Securities ETF (VTP).
All three funds are managed by Vanguard’s Fixed Income Group, which has now brought nine fixed income ETFs to market in 2025 alone—a notable push that reflects the firm’s broader strategy to deepen its bond ETF footprint.
VGVT is an actively managed strategy targeting outperformance relative to the broad U.S. Treasury market. The fund employs active interest rate positioning, with an intermediate duration of about 5.8 years. According to Roger Hallam, global head of rates at Vanguard Fixed Income Group, active duration management is a key lever in the fund’s return strategy. The ETF carries a 0.10% expense ratio.
This is Vanguard’s first actively managed ETF focused solely on government securities and its eighth active fixed income fund overall. The ETF wrapper was selected with advisor preferences in mind. “We continue to see growing advisor and investor demand for ETFs, not just for their liquidity and tax efficiency, but also for their utility in portfolio construction,” says Hallam. He also notes that prevailing yields make this an attractive environment for allocating to high-quality fixed income.
For clients with significant equity or credit risk exposure, VGVT could serve as a core diversifier. “It’s a solid anchor for those seeking to mitigate downside in risk-on allocations,” Hallam adds.
The other two ETFs are passively managed index strategies. VTG, with an ultra-low 0.03% expense ratio, tracks a broad Treasury index and offers efficient exposure to the full spectrum of U.S. government debt. VTP, Vanguard’s new inflation-protected fund, is also an index ETF and charges 0.05%.
VTP is designed to complement Vanguard’s existing TIPS lineup. It targets a longer average duration of 5.26 years, compared to the 2.4-year average duration of the Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). For advisors seeking longer-duration inflation hedging, VTP provides another tool to manage real rate risk and preserve purchasing power in client portfolios.
This latest rollout underscores Vanguard’s intent to be a leading fixed income ETF provider at a time when advisor adoption of ETF strategies continues to accelerate. ETFs have pulled in $556 billion in net inflows year-to-date across U.S. markets, putting 2025 on pace for a record-setting year, according to State Street Investment Management.
Vanguard, which manages $10.5 trillion in assets as of May 31, is focusing its innovation efforts not only on passive products but also on actively managed fixed income—an area where the firm believes it has strong value to deliver. According to LSEG Lipper data, 91% of Vanguard’s active fixed income funds outperformed their peer groups over the past decade, as of March 31.
This recent surge in product development aligns with growing advisor interest in balancing equity-heavy portfolios with high-quality income strategies. Whether clients are seeking total return, duration extension, or inflation protection, Vanguard’s latest ETF offerings are positioned to support more nuanced, risk-aware allocations.
