| |
Sales Charge
(Load) Imposed on Purchases |
|
Purchase
Fee |
|
Sales Charge
(Load) Imposed on Reinvested Dividends |
|
Redemption
Fee |
|
Account
Service Fee Per Year
(for certain
fund account balances below $5,000,000) |
$ |
| |
Management
Fees |
% |
12b-1
Distribution Fee |
|
Other
Expenses |
% |
Total
Annual Fund Operating Expenses |
% |
1
Year |
3
Years |
5
Years |
10
Years |
$ |
$ |
$ |
$ |
|
Total
Return |
Quarter |
|
% |
|
|
-
% |
|
|
1
Year |
5
Years |
10
Years |
Vanguard
Total International Bond Index Fund
Admiral
Shares |
|
|
|
Return Before
Taxes |
% |
% |
% |
Return After
Taxes on Distributions |
|
- |
|
Return After
Taxes on Distributions and Sale of Fund Shares |
|
|
|
Bloomberg
Global Aggregate ex-USD Float Adjusted RIC
Capped
Index (USD Hedged)
(reflects no
deduction for fees, expenses, or taxes) |
% |
% |
% |
Bloomberg
Global Aggregate Index ex USD
(reflects no
deduction for fees, expenses, or taxes) |
|
- |
- |
Plain
Talk About Fund Expenses |
All mutual
funds have operating expenses. These expenses, which are
deducted
from a fund’s gross income, are expressed as a percentage of the
net assets
of the fund. Assuming that operating expenses remain as stated in
the Fees
and Expenses section, Vanguard Total International Bond Index
Fund
Admiral Shares’ expense ratio would be 0.11%, or $1.10 per $1,000 of
average
net assets. The average expense ratio for international income
funds in
2022 was 0.84%, or $8.40 per $1,000 of average net assets (derived
from data
provided by Lipper, a Thomson Reuters Company, which reports
on the
mutual fund industry). |
Plain
Talk About Costs of Investing |
Costs are
an important consideration in choosing a mutual fund. That is
because
you, as a shareholder, pay a proportionate share of the costs of
operating
a fund and any transaction costs incurred when the fund buys or
sells
securities, including costs generated by shareholders of other share
classes
offered by the fund. These costs can erode a substantial portion of
the gross
income or the capital appreciation a fund achieves. Even
seemingly
small differences in expenses can, over time, have a dramatic
effect on
a fund’s performance. |
Type
of Bond (Maturity) |
After
a 1%
Increase |
After
a 1%
Decrease |
After
a 2%
Increase |
After
a 2%
Decrease |
Short-Term
(2.5 years) |
$977 |
$1,024 |
$954 |
$1,049 |
Intermediate-Term
(10 years) |
922 |
1,086 |
851 |
1,180 |
Long-Term
(20 years) |
874 |
1,150 |
769 |
1,328 |
Plain
Talk About Bonds and Interest Rates |
As a rule,
when interest rates rise, bond prices fall. The opposite is also true:
bond
prices go up when interest rates fall. Why do bond prices and interest
rates move
in opposite directions? Let’s assume that you hold a bond
offering a
4% yield. A year later, interest rates are on the rise and bonds of
comparable
quality and maturity are offered with a 5% yield. With
higher-yielding
bonds available, you would have trouble selling your 4% bond
for the
price you paid—you would probably have to lower your asking price.
On the
other hand, if interest rates were falling and 3% bonds were being
offered,
you should be able to sell your 4% bond for more than you
paid. |
Plain
Talk About Bond Maturities |
A
bond is issued with a specific maturity date—the date when the issuer must
pay
back the bond’s principal (face value). Bond maturities range from less
than
1 year to more than 30 years. Typically, the longer a bond’s maturity, the
more
price risk you, as a bond investor, will face as interest rates rise—but
also
the higher the potential yield you could receive. Longer-term bonds are
generally
more suitable for investors willing to take a greater risk of price
fluctuations
to get higher and more stable interest income. Shorter-term bond
investors
should be willing to accept lower yields and greater income
variability
in return for less fluctuation in the value of their investment. The
stated
maturity of a bond may differ from the effective maturity of a bond,
which
takes into consideration that an action such as a call or refunding may
cause
bonds to be repaid before their stated maturity
dates. |
Plain
Talk About Credit Quality |
A
bond’s credit quality rating is an assessment of the issuer’s ability to
pay
interest
on the bond and, ultimately, to repay the principal. The lower the
credit
quality, the greater the perceived chance that the bond issuer will
default,
or fail to meet its payment obligations. All things being equal, the
lower
a bond’s credit quality, the higher its yield should be to compensate
investors
for assuming additional risk. |
Bloomberg
Global Aggregate ex-USD
Float
Adjusted RIC Capped Index (USD Hedged) | |
Japan |
13.5% |
France |
12.6 |
Germany |
10.6 |
Italy |
7.6 |
Canada |
6.6 |
United
Kingdom |
6.6 |
Spain |
5.4 |
Total |
62.9% |
Bloomberg
Global Aggregate ex-USD
Float
Adjusted RIC Capped Index (USD Hedged) | |
Government of
Japan |
12.5% |
Government of
France |
8.8 |
Government of
Germany |
7.1 |
Government of
Italy |
6.9 |
Government of
the United Kingdom |
4.5 |
Government of
Spain |
4.4 |
Total |
44.2% |
Plain
Talk About International Investing |
U.S.
investors who invest in foreign securities will encounter risks not
typically
associated with U.S. companies because foreign stock and bond
markets
operate differently from the U.S. markets. For instance, foreign
companies
and governments may not be subject to the same or similar
auditing,
legal, tax, regulatory, financial reporting, accounting, and
recordkeeping
standards and practices as U.S. companies and the U.S.
government,
and their stocks and bonds may not be as liquid as those of
similar
U.S. entities. In addition, foreign stock exchanges, brokers,
companies,
bond markets, and dealers may be subject to different levels of
government
supervision and regulation than their counterparts in the
United
States. Further, the imposition of economic or other sanctions on the
United
States by a foreign country, or on a foreign country or issuer by the
United
States, could impair a fund’s ability to buy, sell, hold, receive,
deliver,
or
otherwise transact in certain investment securities or obtain exposure to
foreign
securities and assets. These factors, among others, could negatively
affect the
returns U.S. investors receive from foreign
investments. |
Plain
Talk About Derivatives |
Derivatives
can take many forms. Some forms of derivatives—such as
exchange-traded
futures and options on securities, commodities, or
indexes—have
been trading on regulated exchanges for decades. These
types
of derivatives are standardized contracts that can easily be bought and
sold
and whose market values are determined and published daily. On the
other
hand, non-exchange-traded derivatives—such as certain swap
agreements
and foreign currency exchange forward contracts—tend to be
more
specialized or complex and may be more difficult to accurately
value. |
Plain
Talk About Vanguard’s Unique Corporate Structure |
Vanguard
is owned jointly by the funds it oversees and thus indirectly by the
shareholders
in those funds. Most other mutual funds are operated by
management
companies that are owned by third parties—either public or
private
stockholders—and not by the funds they
serve. |
Plain
Talk About Distributions |
As
a shareholder, you are entitled to your portion of a fund’s income from
interest
as well as capital gains from the fund’s sale of investments. Income
consists
of interest the fund earns from its money market and bond
investments.
Capital gains are realized whenever the fund sells securities for
higher
prices than it paid for them. These capital gains are either short-term
or
long-term, depending on whether the fund held the securities for one year
or
less or for more than one
year. |
|
|
|
|
|
|
For a
Share Outstanding
Throughout
Each Period |
Year Ended October
31, | ||||
2023 |
2022 |
2021 |
2020 |
2019 | |
Net
Asset Value, Beginning of Period |
$19.14 |
$22.64 |
$23.32 |
$23.35 |
$21.79 |
Investment
Operations |
|
|
|
|
|
Net
Investment Income1 |
.338 |
.195 |
.191 |
.223 |
.246 |
Net
Realized and Unrealized Gain (Loss) on Investments |
(.030) |
(2.864) |
(.644) |
.489 |
1.976 |
Total from
Investment Operations |
.308 |
(2.669) |
(.453) |
.712 |
2.222 |
Distributions |
|
|
|
|
|
Dividends
from Net Investment Income |
(.398) |
(.684) |
(.191) |
(.742) |
(.662) |
Distributions
from Realized Capital Gains |
— |
(.147) |
(.036) |
— |
— |
Total
Distributions |
(.398) |
(.831) |
(.227) |
(.742) |
(.662) |
Net
Asset Value, End of Period |
$19.05 |
$19.14 |
$22.64 |
$23.32 |
$23.35 |
Total
Return2 |
1.60% |
-12.20% |
-1.96% |
3.15% |
10.41% |
Ratios/Supplemental
Data |
|
|
|
|
|
Net
Assets, End of Period (Millions) |
$23,079 |
$23,933 |
$29,241 |
$50,818 |
$51,889 |
Ratio of
Total Expenses to Average Net Assets |
0.11%3 |
0.11%3 |
0.11% |
0.11% |
0.11% |
Ratio of
Net Investment Income to Average Net Assets |
1.74% |
0.94% |
0.83% |
0.97% |
1.09% |
Portfolio
Turnover Rate |
29% |
27%4 |
25%4 |
31%4 |
26% |
|
|
1 |
Calculated
based on average shares outstanding. |
2 |
Total
returns do not include account service fees that may have applied in the
periods shown.
Fund
prospectuses provide information about any applicable account service
fees. |
3 |
The
ratio of expenses to average net assets for the period net of reduction
from custody fee
offset
arrangements was 0.11%. |
4 |
Excludes
the value of portfolio securities received or delivered as a result of
in-kind purchases
or
redemptions of the fund’s capital shares, including ETF Creation
Units. |
Web |
|
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companies |
Vanguard
Fund |
Inception
Date |
Newspaper
Abbreviation |
Vanguard
Fund
Number |
CUSIP
Number |
Vanguard
Total International
Bond
Index Fund |
|
|
|
|
Admiral
Shares |
5/31/2013 |
TotIntBdIxFdAdm |
511 |
92203J308 |