Vanguard has expanded its fixed income offering with the launch of a short duration US Treasury bond ETF.

The Vanguard US Treasury 0-1 Year Bond UCITS ETF (VDST) is listed on the London Stock Exchange with a total expense ratio of 0.07%.

This is the first ETF the firm has launched in over a year, with its last launch coming in June 2019 when it brought the 

Tracking the Bloomberg Barclays US Short Treasury index, VDST offers exposure to US Treasury bills, notes and bonds with less than one year to maturity.

The launch of VDST bolsters Vanguard’s fixed income and equity ETF offering to 27.

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Matthew Piro (pictured), head of portfolio review department, Europe, at Vanguard, commented: “As investors have increasingly voted with their feet in favour of low-cost, investment products, we have seen growing, and increasingly global demand for our equity and fixed income UCITS ETF range.

“The Vanguard US Treasury 0-1 Year Bond UCITS ETF is an important addition to our UCITS ETF range, and another part of the puzzle in helping to meet the evolving needs of long-term investors.”

Across Vanguard's 27-strong ETF range, the firms has $57.3bn in assets under management (AUM).