Vanguard Intermediate-Term Treasury Index Fund Price & Performance (VGIT)

Recent ETF flow data shows strong investor preference for intermediate-term U.S. Treasury funds, with the Vanguard Intermediate-Term Treasury ETF (VGIT) attracting $770 million in April—the highest since June 2024. This trend comes as long-duration Treasury ETFs continue to see outflows, reflecting ongoing caution over rate and inflation risks.12

U.S. bond funds recorded their fifth straight week of outflows, losing $10.07 billion by mid-April, as investors react to inflation worries from new tariffs. However, government and Treasury funds bucked the trend, attracting $6.82 billion in inflows, signaling a clear preference for safety over yield in a turbulent environment.21

Vanguard’s Intermediate-Term Treasury Fund (VFITX) is now its second-best performing bond fund, up 2.9% this year. The fund’s gains come as the 10-year Treasury yield declined to 4.35%, highlighting investor demand for quality fixed income amid shifting confidence in U.S. borrowing conditions.34