Vanguard Short-Term Inflation-Protected Index Individual Investment Option

Strategy: The Fund employs an indexing investment approach designed to track the performance of the Barclays U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. The Index is a market-capitalization-weighted index that includes all inflation-protected public obligations issued by the U.S. Treasury with remaining maturities of less than 5 years.

The Fund attempts to replicate the target index by investing all, or substantially all, of its assets in the securities that make up the Index, holding each security in approximately the same proportion as its weighting in the Index. The Fund maintains a dollar-weighted average maturity consistent with that of the target 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 income fluctuations which could affect the Fund's performance. The Fund's quarterly income distributions are likely to fluctuate considerably more than the income distributions of a typical bond fund. In fact, under certain conditions, the Fund may not have any income to distribute, income fluctuations associated with changes in interest rates are expected to be low, however, income fluctuations associated with changes in inflation are expected to be high. Overall, investors can expect income fluctuations to be high for the Fund.

The Fund is also subject to interest rate risk.

Prices and Performance: Click here to review.

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

Underlying Estimated Fund Expenses:1 0.04%
Program Management Fee: 0.27%
State Administrative Fee: 0.03%
TOTAL: 0.34%

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1 As of June 30, 2017.

 

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