Vanguard Total Bond Market Index Individual Investment Option

Strategy: The Fund employs an indexing investment approach designed to track the performance of the Barclays U.S. Aggregate Float Adjusted Index. This Index represents a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States - including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities - all with maturities of more than one year. The Fund invests by sampling the Index, meaning that it holds a broadly diversified collection 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 ranges between 5 and 10 years.

Risk: An investment in the Fund could lose money over short or even long periods. You should expect the Fund's share price and total return to fluctuate within a wide range. 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 moderate for the Fund because it invests mainly in short-term and intermediate-term bonds, whose prices are less sensitive to interest rate changes than are the prices of long-term bonds.

The Fund is also subject to income risk, credit risk, call risk, prepayment risk, extension 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 0.03%
Program Management Fee: 0.27%
State Administrative Fee: 0.03%
TOTAL: 0.33%

Click to Review: Fact Sheet, Prospectus, Annual Report

 

1 As of June 30, 2017.

 

Historical prices: Search for historical price information