Vanguard Short-Term Bond Index Individual Investment Option

Strategy: The Fund employs an indexing investment approach designed to track the performance of the Barclays U.S. 1-5 Year Government/Credit Float Adjusted Index. This Index includes all medium and larger issues of U.S. government, investment-grade corporate and investment-grade international dollar-denominated bonds that have maturities between 1 and 5 years, and are publicly issued. The Fund invests by sampling the Index, meaning that it holds a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics. All of the Fund's investments will be selected through the sampling process, and at least 80% of the Fund's assets will be invested in bonds held in the Index. The Fund maintains a dollar-weighted average maturity consistent with that of the Index, which generally does not exceed 3 years.

Risk: The Fund is designed for investors with a low tolerance for risk, but you could still lose money by investing in it. The Fund is subject to the following risks, which could affect the Fund's performance.

Interest rate risk: The chance that bond prices overall will decline because of rising interest rates. Interest rate risk should be low for the Fund because it invests primarily in short-term bonds, whose prices are much less sensitive to interest rate changes than are the prices of long-term bonds.

The Fund is also subject to income risk, credit risk, and index sampling risk.

Prices and Performance: Click here to review.

Expense Ratio: The estimated overall expense ratio for this Portfolio is:

Underlying Estimated Fund Expenses:1 0.05%
Program Management Fee: 0.27%
State Administrative Fee: 0.03%
TOTAL: 0.35%

Click to Review: Fact Sheet, Prospectus, Annual Report

 

1 As of March 31, 2016.

 

Historical prices: Search for historical price information