Vanguard U.K. Gilts

ETF description

This ETF focuses on providing exposure to UK government bonds, also known as gilts. These are debt securities issued by the UK government to raise money and typically offer a fixed rate of return over a specific period. By investing in UK gilts, this ETF aims to track the performance of the UK government bond market, covering a range of bonds with different maturity dates.

Investors seeking a lower‑risk option compared to stocks might find this ETF appealing, as government bonds are generally considered more stable.

Issuer details

Vanguard is the largest provider of mutual funds and the second‑largest provider of ETFs in the world.

Vanguard is a major American investment management company headquartered in Malvern, Pennsylvania. It’s known for being the largest provider of mutual funds in the world and the second‑largest provider of ETFs after BlackRock’s iShares with over $8trn in global assets under management (as at June 2024). Vanguard was founded in 1975 by John C. Bogle and is notable for its unique ownership structure ‑ it is owned by its funds, which in turn are owned by their shareholders. This structure is designed to align Vanguard’s interests with those of its investors, helping to keep costs low.

Index details

The FTSE Actuaries UK Conventional Gilts All Stocks Total Return index measures the performance of UK government bonds, known as gilts. This index includes all conventional gilts with varying maturities, providing a comprehensive view of the UK government bond market.

The index includes all conventional UK gilts, regardless of their maturity date. This means it encompasses short‑term, medium‑term, and long‑term government bonds.