Vanguard
Variable Insurance Funds
Total
Bond Market Index Portfolio
April
28, 2023
Prospectus
This prospectus contains financial data for the Portfolio through the fiscal year ended December 31, 2022.
The Securities and Exchange Commission (SEC) has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
(Expenses that you pay each year as a percentage of the value of your investment)
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Management
Fees |
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12b-1
Distribution Fee |
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Other
Expenses |
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Total
Annual Portfolio Operating Expenses |
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1
Year |
3
Years |
5
Years |
10
Years |
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$ |
$ |
$ |
$ |
1
2
3
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Total
Return |
Quarter |
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- |
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1
Year |
5
Years |
10
Years |
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Total
Bond Market Index Portfolio |
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Bloomberg
U.S. Aggregate Float Adjusted Index
(reflects no
deduction for fees, expenses, or taxes) |
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Investment
Advisor
The Vanguard Group,
Inc. (Vanguard)
Portfolio
Manager
Joshua C. Barrickman, CFA,
Principal of Vanguard and co-head of Vanguard’s Fixed Income Indexing Americas.
He has managed the Portfolio since 2013.
Tara Talone, CFA, Portfolio Manager
at Vanguard. She has co-managed the Portfolio since September 2022.
4
Tax
Information
The Portfolio
normally distributes its net investment income and net realized capital gains,
if any, to its shareholders, which are the insurance company separate accounts
that sponsor your variable annuity or variable life insurance contract. The tax
consequences to you of your investment in the Portfolio depend on the provisions
of the annuity or life insurance contract through which you invest. For more
information on taxes, please refer to the prospectus of the annuity or life
insurance contract through which Portfolio shares are offered.
Payments
to Financial Intermediaries
The Portfolio and
its investment advisor do not pay financial intermediaries for sales of
Portfolio shares.
5
More
on the Portfolio
This prospectus
describes the principal risks you would face as an investor in this Portfolio.
It is important to keep in mind one of the main principles of investing:
generally, the higher the risk of losing money, the higher the potential reward.
The reverse, also, is generally true: the lower the risk, the lower the
potential reward. As you consider an investment in any mutual fund, you should
take into account your personal tolerance for fluctuations in the securities
markets. Look for this
symbol throughout
the prospectus. It is used to mark detailed information about the more
significant risks that you would confront as a Portfolio investor. To highlight
terms and concepts important to mutual fund investors, we have provided Plain
Talk® explanations along
the way. Reading the prospectus will help you decide whether the Portfolio is
the right investment for you. We suggest that you keep this prospectus for
future reference.
symbol throughout
the prospectus. It is used to mark detailed information about the more
significant risks that you would confront as a Portfolio investor. To highlight
terms and concepts important to mutual fund investors, we have provided Plain
Talk® explanations along
the way. Reading the prospectus will help you decide whether the Portfolio is
the right investment for you. We suggest that you keep this prospectus for
future reference.A
Note About Vanguard Variable Insurance Funds
The Total Bond
Market Index Portfolio of Vanguard Variable Insurance Funds is a mutual fund
used solely as an investment option for annuity or life insurance contracts
offered by insurance companies. This means that you cannot purchase shares of
the Portfolio directly, but only through a contract offered by an insurance
company.
The Total Bond
Market Index Portfolio is separate from other Vanguard mutual funds, even when
the Portfolio and a fund have the same investment objective and advisor. The
Portfolio’s investment performance will differ from the performance of other
Vanguard funds because of differences in the securities held and because of
administrative and insurance costs associated with the annuity or life insurance
program through which you invest.
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Plain
Talk About Costs of Investing |
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Costs
are an important consideration in choosing a mutual fund. That is
because
you, as a contract owner, pay a proportionate share of the costs of
operating
a fund and any transaction costs incurred when the fund buys or
sells
securities. 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. |
The following
sections explain the principal investment strategies and policies that the
Portfolio uses in pursuit of its investment objective. The board of trustees of
Vanguard Variable Insurance Funds (the Board), which oversees the Portfolio's
management, may change investment strategies or policies in the
6
interest of
shareholders without a shareholder vote, unless those strategies or policies are
designated as fundamental. The Portfolio may change its policy of investing at
least 80% of its assets in bonds that are part of its target index only upon 60
days‘ notice to shareholders.
Market
Exposure
The Portfolio
invests in public, investment-grade, taxable, fixed income securities in the
United States, as well as mortgage-backed and asset-backed
securities.
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Plain
Talk About Types of Bonds |
|
Bonds
are issued (sold) by many sources: Corporations issue corporate
bonds;
the federal government issues U.S. Treasury bonds; agencies of the
federal
government issue agency bonds; financial institutions issue
asset-backed
bonds; and mortgage holders issue “mortgage-backed”
pass-through
certificates. Each issuer is responsible for paying back the
bond’s
initial value as well as for making periodic interest payments. Many
bonds
issued by government agencies and entities are neither guaranteed
nor
insured by the U.S.
government. |
The
Portfolio is subject to interest rate risk, which is the chance that bond
prices overall will decline because of rising interest rates.
prices overall will decline because of rising interest rates.
7
|
Plain
Talk About Bonds and Interest Rates |
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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. |
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How
mortgage-backed securities are different:
In general, declining interest
rates
will not lift the prices of mortgage-backed securities—such as those
guaranteed
by the Government National Mortgage Association—as much as
the
prices of comparable bonds. Why? Because when interest rates fall, the
bond
market tends to discount the prices of mortgage-backed securities for
prepayment
risk—the possibility that homeowners will refinance their
mortgages
at lower rates and cause the bonds to be paid off prior to
maturity.
In part to compensate for this prepayment possibility,
mortgage-backed
securities tend to offer higher yields than other bonds of
comparable
credit quality and maturity. In contrast, when interest rates rise,
prepayments
tend to slow down, subjecting mortgage-backed securities to
extension
risk—the possibility that homeowners will repay their mortgages
at
slower rates. This will lengthen the duration or average life of
mortgage-backed
securities held by a fund and delay the fund’s ability to
reinvest
proceeds at higher interest rates, making the fund more sensitive to
changes
in interest rates. |
In general,
interest rate fluctuations widen as a bond portfolio’s average maturity
lengthens. The Portfolio is expected to have a moderate level of interest rate
risk because its holdings have an intermediate-term average
maturity.
The
Portfolio is subject to income risk, which is the chance that the Portfolio's
income will decline because of falling interest rates. A portfolio's income
declines when interest rates fall because the portfolio then must invest new
cash flow and cash from maturing bonds in lower-yielding
bonds.
In general, income
risk is higher for short-term bond funds and lower for long-term bond funds.
Accordingly, the Portfolio should have a moderate level of income
risk.
8
|
Plain
Talk About Bond Maturities |
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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. |
The
Portfolio is subject to credit risk, which is the chance that a bond issuer will
fail to pay interest or principal in a timely manner or that negative
perceptions of the issuer’s ability to make such payments will cause the price
of that bond to decline.
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Plain
Talk About Credit Quality |
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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. |
Credit risk should
be low for the Portfolio because it invests mainly in fixed income securities
with high credit quality ratings.
To a limited
extent, the Portfolio is subject to event
risk,
which is the chance that corporate fixed income securities held by the Portfolio
may suffer a substantial decline in credit quality and market value because of a
restructuring of the companies that issued the securities or because of other
factors negatively affecting the issuers.
The
Portfolio is subject to liquidity risk, which is the chance that the Portfolio
may not be able to sell a security in a timely manner at a desired
price.
9
Corporate bonds are
traded among dealers and brokers that connect buyers with sellers. Liquidity in
the corporate bond market may be challenged depending on overall economic
conditions and credit tightening. There may be little trading in the secondary
market for particular bonds and other debt securities, which may make them more
difficult to value or sell.
Market disruptions
can adversely affect local and global markets as well as normal market
conditions and operations. Any such disruptions could have an adverse impact on
the value of the Portfolio's investments and Portfolio performance.
Security
Selection
Because it would be
very expensive and inefficient to buy and sell all securities held in
its target index, the Total Bond Market Index Portfolio uses index “sampling”
techniques to select securities. Using computer programs, the Portfolio’s
advisor generally selects a representative sample of securities that
approximates the full target index in terms of key risk factors and other
characteristics. These factors include duration, cash flow, quality, and
callability of the underlying bonds. In addition, the Portfolio keeps industry
sector and subsector exposure within tight boundaries relative to its target
index. Because the Portfolio does not hold all of the
securities included in its target index, some of the securities (and issuers)
that are held will likely be overweighted (or underweighted) compared with the
target index. The maximum overweight (or underweight) is constrained at the
issuer level with the goal of producing well-diversified credit exposure in the
Portfolio.
The
Portfolio is subject to index sampling risk, which is the chance that the
securities selected for the
Portfolio, in the aggregate, will not provide investment performance matching
that of the Portfolio's target index. Index sampling risk for the Portfolio is
expected to be low.
The Bloomberg U.S.
Aggregate Float Adjusted Index measures the performance of a wide spectrum of
public, investment-grade, taxable, fixed income securities in the United
States—including government, corporate, and international
10
dollar-denominated bonds, as well
as mortgage-backed and asset-backed securities—all with maturities of more than
1 year. As of December 31, 2022, the Portfolio was composed of the following
types of bonds:
|
Type
of Bond |
Portion
of Portfolio’s
Net
Assets |
|
Treasury/Agency |
45.6% |
|
Government
Mortgage-Backed |
20.4 |
|
Industrial |
15.6 |
|
Finance |
9.2 |
|
Foreign |
3.5 |
|
Asset-Backed/Commercial
Mortgage-Backed |
2.6 |
|
Utilities |
2.3 |
|
Other |
0.8 |
Up to 20% of the
Portfolio’s assets may be used to purchase nonpublic, investment-grade
securities, generally referred to as 144A securities, as well as smaller public
issues or medium-term notes not included in the Index because of the small size
of the issue. The Portfolio’s advisor expects that the vast majority of these
securities will have characteristics and risks similar to those in the target
index. Subject to the same 20% limit, the Portfolio may also purchase other
investments that are outside of its target index or may hold bonds that, when
acquired, were included in the index but subsequently were removed. The
Portfolio may invest a portion of its assets in callable bonds.
The
Portfolio is subject to prepayment risk, which is the chance that during periods
of falling interest rates, homeowners will refinance their mortgages before
their maturity dates, resulting in prepayment of mortgage-backed securities held
by the Portfolio. The Portfolio would then lose any price appreciation above the
mortgage’s principal and would be forced to reinvest the unanticipated proceeds
at lower interest rates, resulting in a decline in the Portfolio’s income. Such
prepayments and subsequent reinvestments would also increase the Portfolio’s
turnover rate. Prepayment risk should be moderate for the
Portfolio.
The
Portfolio is subject to extension risk, which is the chance that during periods
of rising interest rates, certain debt securities will be paid off substantially
more slowly than originally anticipated, and the value of those securities may
fall. For funds that invest in mortgage-backed securities, extension risk is the
chance that during periods of rising interest rates, homeowners will repay their
mortgages at slower rates. This will lengthen the duration or average life of
mortgage-backed securities held by the Portfolio and delay the Portfolio's
ability to reinvest proceeds at higher interest rates. Extension risk should be
moderate for the Portfolio.
11
The
Portfolio is subject to call risk, which is the chance that during periods of
falling interest rates, issuers of callable bonds may call (redeem) securities
with higher coupon rates or interest rates before their maturity dates. The
Portfolio would then lose any price appreciation above the bond’s call price and
would be forced to reinvest the unanticipated proceeds at lower interest rates,
resulting in a decline in the Portfolio’s income. Such redemptions and
subsequent reinvestments would also increase the Portfolio’s turnover rate. Call
risk should be low for the Portfolio because it invests only a small portion of
its assets in callable bonds.
|
Plain
Talk About Callable Bonds |
|
Although
bonds are issued with clearly defined maturities, in some cases the
bond
issuer has a right to call in (redeem) the bond earlier than its maturity
date.
When a bond is called, the bondholder may have to replace it with
another
bond with a lower yield than the original bond. One way for bond
investors
to protect themselves against call risk is to purchase a bond early
in
its lifetime, long before its call date. Another way is to buy bonds with
lower
coupon rates or interest rates, which make them less likely to
be
called. |
The Portfolio may
invest a portion of its assets in mortgage-backed securities, which represent
interests in underlying pools of mortgages. Unlike ordinary bonds, which
generally pay a fixed rate of interest at regular intervals and then repay
principal upon maturity, mortgage-backed securities pass through both interest
and principal from underlying mortgages as part of their regular payments.
Because the mortgages underlying the securities can be prepaid at any time by
homeowners or corporate borrowers, mortgage-backed securities are subject to
prepayment risk. These types of securities are issued by a number of government
agencies, including the GNMA, the FHLMC, and the FNMA. Mortgage-backed
securities issued by the GNMA are guaranteed by the full faith and credit of the
U.S. government as to the timely payment of principal and interest; those issued
by other government agencies or private corporations are not.
The Portfolio may
also invest in conventional mortgage-backed securities—which are packaged by
private corporations and are not guaranteed by the U.S. government—and enter
into mortgage-dollar-roll transactions. In a mortgage-dollar-roll transaction,
the Portfolio sells mortgage-backed securities to a dealer and simultaneously
agrees to purchase similar securities in the future at a predetermined price.
These transactions simulate an investment in mortgage-backed securities and have
the potential to enhance the Portfolio’s returns and reduce its administrative
burdens, compared with holding
12
mortgage-backed
securities directly. These transactions may increase the Portfolio’s turnover
rate. Mortgage dollar rolls will be used only to the extent that they are
consistent with the Portfolio’s investment objective and risk
profile.
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Plain
Talk About U.S. Government-Sponsored Enterprises |
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A
variety of U.S. government-sponsored enterprises (GSEs), such as the
Federal
Home Loan Mortgage Corporation (FHLMC), the Federal National
Mortgage
Association (FNMA), and the Federal Home Loan Banks (FHLBs),
issue
debt and mortgage-backed securities. Although GSEs may be chartered
or
sponsored by acts of Congress, they are not funded by congressional
appropriations.
In September of 2008, the U.S. Treasury placed FNMA and
FHLMC
under conservatorship and appointed the Federal Housing Finance
Agency
(FHFA) to manage their daily operations. In addition, the U.S. Treasury
entered
into purchase agreements with FNMA and FHLMC to provide them
with
capital in exchange for senior preferred stock. Generally, a GSE’s
securities
are neither issued nor guaranteed by the U.S. Treasury and are not
backed
by the full faith and credit of the U.S. government. In most cases,
these
securities are supported only by the credit of the GSE, standing alone. In
some
cases, a GSE’s securities may be supported by the ability of the GSE to
borrow
from the U.S. Treasury or may be supported by the U.S. government in
some
other way. Securities issued by the Government National Mortgage
Association
(GNMA), however, are backed by the full faith and credit of the
U.S.
government. |
Other
Investment Policies and Risks
The Portfolio
reserves the right to substitute a different index for the index it currently
tracks if the current index is discontinued, if the Portfolio's agreement with
the sponsor of its target index is terminated, or for any other reason
determined in good faith by the Board. In any such instance, the substitute
index would represent the same market segment as the current index.
The Portfolio may
invest in international U.S. dollar-denominated bonds issued by foreign
governments, government agencies, and companies. To the extent that the
Portfolio owns foreign bonds, it is subject to country
risk,
which is the chance that world events—such as political upheaval, financial
troubles, or natural disasters—will adversely affect the value and/or liquidity
of securities issued by foreign governments, government agencies, or companies.
Because the bond’s value is designated in dollars rather than in the currency of
the issuer’s country, the Portfolio is not exposed to currency risk; rather, the
issuer assumes the risk, usually to attract U.S. investors.
13
The Portfolio may
also invest in relatively conservative classes of collateralized mortgage
obligations (CMOs), which offer a high degree of cash-flow predictability and a
low level of vulnerability to mortgage prepayment risk. To reduce credit risk,
these less-risky classes of CMOs are purchased only if they are issued by
agencies of the U.S. government or issued by private companies that carry
high-quality investment-grade ratings.
The Portfolio
may invest in derivatives. In general, investments in derivatives may involve
risks different from, and possibly greater than, those of investments directly
in the underlying securities or assets.
The Portfolio may
also invest in derivatives. Generally speaking, a derivative is a financial
contract whose value is based on the value of a financial asset (such as a
stock, a bond, or a currency), a physical asset (such as gold, oil, or wheat), a
market index, or a reference rate.
The Portfolio may
invest in fixed income futures contracts, fixed income options, interest rate
swaps, total return swaps, credit default swaps, or other derivatives only if
the expected risks and rewards of the derivatives are consistent with the
investment objective, policies, strategies, and risks of the Portfolio as
disclosed in this prospectus. The advisor will not use derivatives to change the
risk exposure of the Portfolio. In particular, derivatives will be used for the
Portfolio only where they may help the advisor invest in eligible asset classes
with greater efficiency and lower cost than is possible through direct
investment; add value when these instruments are attractively priced; adjust
sensitivity to changes in interest rates; or hedge foreign currency exposure.
The Portfolio will not use derivatives for speculation or for the purpose of
leveraging (magnifying) investment returns.
|
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—tend
to be more specialized or complex and may be more
difficult
to accurately value. |
14
The Portfolio may
invest a small portion of its assets in fixed income futures, which are a type
of derivative, and/or shares of exchange-traded funds (ETFs). These fixed income
futures and ETFs typically provide returns similar to those of the bonds listed
in the index, or in a subset of the index, the Portfolio seeks to track. The
Portfolio may purchase futures or ETFs when doing so will reduce the Portfolio’s
transaction costs, facilitate cash management, mitigate risk, or have the
potential to add value because the instruments are favorably priced. Vanguard
receives no additional revenue from Portfolio assets invested in ETF Shares of
other Vanguard funds. Portfolio assets invested in ETF Shares are excluded when
allocating to the Portfolio its share of the costs of Vanguard
operations.
Cash
Management
The Portfolio's
daily cash balance may be invested in Vanguard Market Liquidity Fund and/or
Vanguard Municipal Cash Management Fund (each, a CMT Fund), which are low-cost
money market funds. When investing in a CMT Fund, the Portfolio bears its
proportionate share of the expenses of the CMT Fund in which it invests.
Vanguard receives no additional revenue from Portfolio assets invested in a CMT
Fund.
Temporary
Investment Measures
The Portfolio may
temporarily depart from its normal investment policies and strategies when the
advisor believes that doing so is in the Portfolio's best interest, so long as
the strategy or policy employed is consistent with the Portfolio's investment
objective. For instance, the Portfolio may invest beyond its normal limits in
derivatives or exchange-traded funds that are consistent with the Portfolio's
investment objective when those instruments are more favorably priced or provide
needed liquidity, as might be the case when the Portfolio receives large cash
flows that it cannot prudently invest immediately.
Frequent
Trading or Market-Timing
Background.
Some
investors try to profit from strategies involving frequent trading of mutual
fund shares, such as market-timing. For funds holding foreign securities,
investors may try to take advantage of an anticipated difference between the
price of the fund’s shares and price movements in overseas markets, a practice
also known as time-zone arbitrage. Investors also may try to engage in frequent
trading of funds holding investments such as small-cap stocks and high-yield
bonds. As money is shifted into and out of a fund by an investor engaging in
frequent trading, the fund incurs costs for buying and selling securities,
resulting in increased brokerage and administrative costs. These costs
15
are borne by
all fund investors,
including the long-term investors who do not generate the costs. In addition,
frequent trading may interfere with an advisor’s ability to efficiently manage
the fund.
Policies
to address frequent trading. The Vanguard funds
(other than money market funds and short-term bond funds, but including Vanguard
Short-Term Inflation-Protected Securities Index Fund) do not knowingly
accommodate frequent trading. The board of trustees of each Vanguard fund (other
than money market funds and short-term bond funds, but including Vanguard
Short-Term Inflation-Protected Securities Index Fund) has adopted policies and
procedures reasonably designed to detect and discourage frequent trading and, in
some cases, to compensate the fund for the costs associated with it. These
policies and procedures do not apply to ETF Shares because frequent trading in
ETF Shares generally does not disrupt portfolio management or otherwise harm
fund investors. Although there is no assurance that Vanguard will be able to
detect or prevent frequent trading or market-timing in all circumstances, the
following policies have been adopted to address these issues:
• Each Vanguard
fund reserves the right to reject any purchase request—including exchanges from
other Vanguard funds—without notice and regardless of size. For example, a
purchase request could be rejected because the investor has a history of
frequent trading or if Vanguard determines that such purchase may negatively
affect a fund’s operation or performance.
• Certain Vanguard
funds charge investors purchase and/or redemption fees on
transactions.
You may purchase or
sell Portfolio shares through a contract offered by an insurance company. When
insurance companies establish omnibus accounts in the Portfolio for their
clients, we cannot monitor the individual clients’ trading activity. However, we
review trading activity at the omnibus account level, and we look for activity
that may indicate potential frequent trading or market-timing. If we detect
suspicious trading activity, we will seek the assistance of the insurance
company to investigate that trading activity and take appropriate action,
including prohibiting additional purchases of Portfolio shares by a client.
Insurance companies may apply frequent-trading policies that differ from one
another. Please read the insurance company contract and program materials
carefully to learn of any rules or fees that may apply.
See
the accompanying prospectus for the annuity or insurance program through which
Portfolio shares are offered for further details on transaction
policies.
16
The Portfolio, in
determining its net asset value, will use fair-value pricing when appropriate,
as described in the Share
Price
section. Fair-value pricing may reduce or eliminate the profitability of certain
frequent-trading strategies.
Do
not invest with Vanguard if you are a market-timer.
A precautionary
note to investment companies: The Portfolio's shares are issued
by a registered investment company, and therefore the acquisition of such shares
by other investment companies and private funds is subject to the restrictions
of Section 12(d)(1) of the Investment Company Act of 1940 (the 1940 Act). SEC
Rule 12d1-4 under the 1940 Act permits registered investment companies to invest
in other registered investment companies beyond the limits in Section 12(d)(1),
subject to certain conditions, including that funds with different investment
advisors must enter into a fund of funds investment agreement.
Turnover
Rate
A mutual fund’s
turnover rate is a measure of its trading activity. Generally, an index fund
sells securities in response to redemption requests or to changes in the
composition of its target index, or to manage the fund‘s duration. The Portfolio
may sell securities regardless of how long they have been held. The historical
turnover rates for the Portfolio can be found in the Financial
Highlights section of this
prospectus. A turnover rate of 100%, for example, would mean that the Portfolio
had sold and replaced securities valued at 100% of its net assets within a
one-year period. In general, the greater the turnover rate, the greater the
impact transaction costs will have on a fund’s return. Also, funds with high
turnover rates may be more likely to generate capital gains, including
short-term capital gains, that must be distributed to shareholders and will be
taxable to shareholders investing through a taxable account.
The
Portfolio and Vanguard
The Portfolio is a
member of The Vanguard Group, Inc. (Vanguard), a family of over 200 funds. All
of the funds that are members of Vanguard (other than funds of funds) share in
the expenses associated with administrative services and business operations,
such as personnel, office space, and equipment.
Vanguard Marketing
Corporation provides marketing services to the funds. Although fund shareholders
do not pay sales commissions or 12b-1 distribution fees, each fund (other than a
fund of funds) or each share class of a fund (in the case of a fund with
multiple share classes) pays its allocated share of the Vanguard funds’
marketing costs.
17
|
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. |
Investment
Advisor
The Vanguard Group, Inc., P.O. Box
2600, Valley Forge, PA 19482, which began operations in 1975, provides
investment advisory services to the Portfolio through its Fixed Income Group
pursuant to the Funds' Service Agreement and subject to the supervision and
oversight of the trustees and officers of Vanguard Variable Insurance Funds. As
of December 31, 2022, Vanguard served as advisor for approximately $6 trillion
in assets.
For the fiscal year ended December
31, 2022, the Portfolio’s advisory expenses represented an effective annual rate
of 0.03% of the Portfolio’s average net assets.
Under the terms of
an SEC exemption, the board of trustees of Vanguard Variable Insurance Funds
may, without prior approval from shareholders, change the terms of an advisory
agreement with a third-party investment advisor or hire a new third-party
investment advisor—either as a replacement for an existing advisor or as an
additional advisor. Any significant change in the Portfolio’s advisory
arrangements will be communicated to shareholders in writing. As the Portfolio’s
sponsor and overall manager, Vanguard may provide investment advisory services
to the Portfolio at any time. Vanguard may also recommend to the board of
trustees that an advisor be hired, terminated, or replaced or that the terms of
an existing advisory agreement be revised. Vanguard Variable Insurance Funds has
filed an application seeking a similar SEC exemption with respect to investment
advisors that are wholly owned subsidiaries of Vanguard. If the exemption is
granted, the Portfolio may rely on the new SEC relief.
For a discussion of
why the Board approved the Portfolio's investment advisory arrangement, see the
most recent semiannual report to shareholders covering the fiscal period ended
June 30.
The managers primarily responsible
for the day-to-day management of the Portfolio are:
18
Joshua C.
Barrickman, CFA,
Principal of Vanguard and co-head of Vanguard’s Fixed Income Indexing Americas.
He has been with Vanguard since 1998, has worked in investment management since
1999, has managed investment portfolios since 2005, and has managed the
Portfolio since 2013. Education: B.S., Ohio Northern University; M.B.A., Lehigh
University.
Tara Talone,
CFA, Portfolio Manager
at Vanguard. She has been with Vanguard since 2006, has managed investment
portfolios since 2018, and she has co-managed the Portfolio since September
2022. Education: B.S., Saint Joseph’s University; M.B.A., The Wharton School of
the University of Pennsylvania.
The Portfolio's Statement of
Additional Information
provides information about each portfolio manager’s compensation, other accounts
under management, and ownership of shares of the Portfolio.
Taxes
The Portfolio
normally distributes its net investment income and net realized short-term or
long-term capital gains, if any, to its shareholders, which are the insurance
company separate accounts that fund your variable annuity or variable life
insurance contract. From time to time, the Portfolio may also make distributions
that are treated as a return of capital. The tax consequences to you of your
investment in the Portfolio depend on the provisions of the annuity or life
insurance contract through which you invest; please refer to the prospectus of
such contract for more information.
The Portfolio
intends to operate in such a manner that a separate account investing only in
Portfolio shares will result in the variable annuity and variable life insurance
contracts supported by that account receiving favorable tax treatment. This
favorable treatment means that you generally will not be taxed on Portfolio
distributions or proceeds on dispositions of Portfolio shares received by the
separate account funding your contract. In order to qualify for this favorable
treatment, the insurance company separate accounts that invest in the Portfolio
must satisfy certain requirements. If a Portfolio funding your contract does not
meet such requirements, your contract could lose its favorable tax treatment and
income and gain allocable to your contract could be taxable to you. Also, if the
IRS were to determine that contract holders have an impermissible level of
control over the investments funding their contracts, your contract could lose
its favorable tax treatment and income and gain allocable to your contract could
be taxable currently to you. Please see the Portfolio’s Statement
of Additional Information for more
information.
19
Share
Price
Share price, also
known as net
asset value (NAV), is
calculated as of the close of regular trading on the New York Stock Exchange
(NYSE), generally 4 p.m., Eastern time, on each day that the NYSE is open for
business (a business day). In the rare event the NYSE experiences unanticipated
disruptions and is unavailable at the close of the trading day, NAVs will be
calculated as of the close of regular trading on the Nasdaq (or another
alternate exchange if the Nasdaq is unavailable, as determined at Vanguard’s
discretion), generally 4 p.m., Eastern time. The NAV per share is computed by
dividing the total assets, minus liabilities, of the Portfolio by the number of
Portfolio shares outstanding. On U.S. holidays or other days when the NYSE is
closed, the NAV is not calculated, and the Portfolio does not sell or redeem
shares. However, on those days the value of the Portfolio’s assets may be
affected to the extent that the Portfolio holds securities that change in value
on those days (such as foreign securities that trade on foreign markets that are
open).
Debt securities
held by a Vanguard portfolio are valued based on information furnished by an
independent pricing service or market quotations. When a portfolio determines
that pricing-service information or market quotations either are not readily
available or do not accurately reflect the value of a security, the security is
priced at its fair
value
(the amount that the owner might reasonably expect to receive upon the current
sale of the security).
The values of any
foreign securities held by a portfolio are converted into U.S. dollars using an
exchange rate obtained from an independent third party as of the close of
regular trading on the NYSE. The values of any mutual fund shares, including
institutional money market fund shares, held by a portfolio are based on the
NAVs of the shares. The values of any ETF shares or closed-end fund shares held
by a portfolio are based on the market value of the shares.
A portfolio also
may use fair-value pricing on bond market holidays when the portfolio is open
for business (such as Columbus Day and Veterans Day). Fair-value prices are
determined by Vanguard according to procedures adopted by the board of trustees.
When fair-value pricing is employed, the prices of securities used by a
portfolio to calculate the NAV may differ from quoted or published prices for
the same securities.
The Portfolio has authorized
certain financial intermediaries and their designees, and may, from time to
time, authorize certain fund of funds for which Vanguard serves as the
investment advisor (Vanguard Funds of Funds), to accept orders to buy or sell
fund shares on its behalf. The Portfolio will be deemed to receive an
20
order when accepted by the
financial intermediary, its designee, or one of the Vanguard Funds of Funds, and
the order will receive the NAV next computed by the Portfolio after such
acceptance.
The Portfolio’s NAV
is used to determine the unit value for the annuity or life insurance program
through which you invest. For more information on unit values, please refer to
the accompanying prospectus of the insurance company that offers your annuity or
life insurance program.
21
Financial
Highlights
Financial
highlights information is intended to help you understand a fund’s performance
for the past five years (or, if shorter, its period of operations). Certain
information reflects financial results for a single fund share. Total return
represents the rate that an investor would have earned or lost each period on an
investment in a fund or share class (assuming reinvestment of all
distributions). This information has been obtained from the financial statements
audited by PricewaterhouseCoopers LLP, an independent registered public
accounting firm, whose report, along with fund financial statements, is included
in a fund’s most recent annual report to shareholders. You may obtain a free
copy of a fund’s latest annual or semiannual report, which is available upon
request.
Yields and total
returns presented for the Portfolio are net of the Portfolio's operating
expenses, but they do not take into account charges and expenses attributable to
the annuity or life insurance program through which you invest. The expenses of
the annuity or life insurance program reduce the returns and yields you
ultimately receive, so you should bear those expenses in mind when evaluating
the performance of the Portfolio and when comparing the yields and returns of
the Portfolio with those of other mutual funds.
|
Vanguard
Total Bond Market Index Portfolio |
Year Ended December
31, | ||||
|
For a
Share Outstanding Throughout Each Period |
2022 |
2021 |
2020 |
2019 |
2018 |
|
Net
Asset Value, Beginning of Period |
$12.22 |
$12.81 |
$12.21 |
$11.54 |
$11.86 |
|
Investment
Operations |
|
|
|
|
|
|
Net
Investment Income1 |
.250 |
.228 |
.277 |
.324 |
.313 |
|
Net
Realized and Unrealized Gain (Loss) on Investments |
(1.844) |
(.454) |
.635 |
.657 |
(.343) |
|
Total from
Investment Operations |
(1.594) |
(.226) |
.912 |
.981 |
(.030) |
|
Distributions |
|
|
|
|
|
|
Dividends
from Net Investment Income |
(.226) |
(.260) |
(.312) |
(.311) |
(.267) |
|
Distributions
from Realized Capital Gains |
(.080) |
(.104) |
— |
— |
(.023) |
|
Total
Distributions |
(.306) |
(.364) |
(.312) |
(.311) |
(.290) |
|
Net
Asset Value, End of Period |
$10.32 |
$12.22 |
$12.81 |
$12.21 |
$11.54 |
|
Total
Return |
-13.21% |
-1.72% |
7.58% |
8.67% |
-0.21% |
|
Ratios/Supplemental
Data |
|
|
|
|
|
|
Net
Assets, End of Period (Millions) |
$3,972 |
$4,871 |
$4,867 |
$4,300 |
$3,535 |
|
Ratio of
Total Expenses to Average Net Assets |
0.14%2 |
0.14% |
0.14% |
0.14% |
0.14% |
|
Ratio of
Net Investment Income to Average Net Assets |
2.30% |
1.85% |
2.20% |
2.72% |
2.74% |
|
Portfolio
Turnover Rate3 |
42% |
69% |
94% |
80% |
89% |
|
|
|
|
1 |
Calculated
based on average shares outstanding. |
|
2 |
The
ratio of expenses to average net assets for the period net of reduction
from custody fee offset arrangements
was
0.14%. |
|
3 |
Includes
12%, 33%, 28%, 19%, and 26%, respectively, attributable to
mortgage-dollar-roll activity.
|
22
General
Information
This Portfolio of
Vanguard Variable Insurance Funds offers its shares to insurance companies to
fund both annuity and life insurance contracts. Because of differences in tax
treatment or other considerations, the best interests of various contract owners
participating in the Portfolio might at some time be in conflict. The Board will
monitor for any material conflicts and determine what action, if any, should be
taken.
If the Board
determines that continued offering of shares would be detrimental to the best
interests of the Portfolio’s shareholders, the Portfolio may suspend the
offering of shares for a period of time. If the Board determines that a specific
purchase acceptance would be detrimental to the best interests of the
Portfolio’s shareholders (for example, because of the size of the purchase
request or a history of frequent trading by the investor), the Portfolio may
reject such a purchase request.
If you wish to
redeem money from the Portfolio, please refer to the instructions provided in
the accompanying prospectus for the annuity or life insurance program. Shares of
the Portfolio may be redeemed on any business day that the NYSE is open for
trading. The redemption price of shares will be at the next-determined NAV per
share. Redemption proceeds generally will be wired to the administrator within
one business day following receipt of the redemption request, but no later than
seven business days. Contract owners will receive their redemption checks from
the administrator.
Under normal
circumstances, the Portfolio typically expects to meet redemptions with positive
cash flows. When this is not an option, the Portfolio seeks maintain its risk
exposure by selling a cross section of the Portfolio’s holdings to meet
redemptions, while also factoring in transaction costs. Additionally, the
Portfolio may work with the insurance companies through which contract owners
participate in the Portfolio to implement redemptions in a manner that is least
disruptive to the portfolio.
Under certain
circumstances, including under stressed market conditions, there are additional
tools that the Portfolio may use in order to meet redemptions, including
advancing the settlement of market trades with counterparties to match investor
redemption payments or delaying settlement of an investor’s transaction to match
trade settlement within regulatory requirements. The Portfolio may also suspend
payment of redemption proceeds for up to seven days. Additionally, under these
unusual circumstances, the Portfolio may borrow money (subject to certain
regulatory conditions and if available under board-approved procedures) through
an interfund lending facility; through a bank line-of-credit, including a joint
committed credit facility; or through an uncommitted line-of-credit from
Vanguard in order to meet redemption requests.
24
The Portfolio may
suspend the redemption right or postpone payment at times when the NYSE is
closed or during any emergency circumstances, as determined by the
SEC.
The exchange
privilege (your ability to redeem shares from one Portfolio to purchase shares
of another Portfolio) may be available to you through your contract. Although we
make every effort to maintain the exchange privilege, Vanguard reserves the
right to revise or terminate this privilege, limit the amount of an exchange, or
reject any exchange, at any time, without notice.
The Portfolio may pay redemption proceeds, in
whole or in part, by an in-kind distribution of readily marketable securities if
Vanguard determines that it would be detrimental to the best interests of the
Portfolio's remaining shareholders to pay redemption proceeds in cash.
For certain
categories of investors, the Portfolio has authorized one or more brokers to
accept on its behalf purchase and redemption orders. The brokers are authorized
to designate other intermediaries to accept purchase and redemption orders on
the Portfolio’s behalf. The Portfolio will be deemed to have received a purchase
or redemption order when an authorized broker, or a broker’s authorized
designee, accepts the order in accordance with the Portfolio’s instructions. In
most cases, for these categories of investors, a contract owner’s properly
transmitted order will be priced at the Portfolio’s next-determined NAV after
the order is accepted by the authorized broker or the broker’s designee. The
contract owner should review the authorized broker’s policies relating to
trading in the Vanguard funds.
Please consult the
Portfolio’s Statement
of Additional Information or our website for
a description of the policies and procedures that govern disclosure of the
Portfolio's portfolio holdings.
The Portfolio's
Bylaws require, unless the Trust otherwise consents in writing, that the U.S.
Federal District Courts be the sole and exclusive forum for the resolution of
complaints under the Securities Act of 1933. This provision may limit a
shareholder’s ability to bring a claim in a different forum and may result in
increased shareholder costs in pursuing such a claim.
Shareholder
Rights
The Portfolio's
Agreement and Declaration of Trust, as amended, requires a shareholder bringing
a derivative action on behalf of Vanguard Variable Insurance Funds (the Trust)
that is subject to a pre-suit demand to collectively hold at least 10% of the
outstanding shares of the Trust or at least 10% of the outstanding
25
shares of the
series or class to which the demand relates and to undertake to reimburse the
Trust for the expense of any counsel or advisors used when considering the
merits of the demand in the event that the board of trustees determines not to
bring such action. In each case, these requirements do not apply to claims
arising under the federal securities laws to the extent that any such federal
securities laws, rules, or regulations do not permit such
application.
26
CFA® is a
registered trademark owned by CFA Institute.
”Bloomberg®” and the Bloomberg U.S.
Aggregate Float Adjusted Index (the Index or Bloomberg Index) are service marks
of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services
Limited (“BISL”), the administrator of the Index (collectively, “Bloomberg”),
and have been licensed for use for certain purposes by Vanguard.
The Total Bond
Market Index Portfolio is not sponsored, endorsed, sold or promoted by
Bloomberg. Bloomberg does not make any representation or warranty, express or
implied, to the owners of or counterparties to the Total Bond Market Index
Portfolio or any member of the public regarding the advisability of investing in
securities generally or in the Total Bond Market Index Portfolio particularly.
The only relationship of Bloomberg to Vanguard is the licensing of certain
trademarks, trade names and service marks and of the Bloomberg U.S. Aggregate
Float Adjusted Index, which is determined, composed and calculated by BISL
without regard to Vanguard or the Total Bond Market Index Portfolio. Bloomberg
has no obligation to take the needs of Vanguard or the owners of the Total Bond
Market Index Portfolio into consideration in determining, composing or
calculating the Bloomberg U.S. Aggregate Float Adjusted Index. Bloomberg is not
responsible for and has not participated in the determination of the timing of,
prices at, or quantities of the Total Bond Market Index Portfolio to be issued.
Bloomberg shall not have any obligation or liability, including, without
limitation, to the Total Bond Market Index Portfolio customers, in connection
with the administration, marketing or trading of the Total Bond Market Index
Portfolio.
BLOOMBERG DOES
NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE BLOOMBERG U.S.
AGGREGGATE FLOAT ADJUSTED INDEX OR ANY DATA RELATED THERETO AND SHALL HAVE NO
LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS THEREIN. BLOOMBERG DOES NOT
MAKE ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY VANGUARD,
OWNERS OF THE TOTAL BOND MARKET INDEX PORTFOLIO OR ANY OTHER PERSON OR ENTITY
FROM THE USE OF THE BLOOMBERG U.S. AGGREGGATE FLOAT ADJUSTED INDEX OR ANY DATA
RELATED THERETO. BLOOMBERG DOES NOT MAKE ANY EXPRESS OR IMPLIED WARRANTIES AND
EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR USE WITH RESPECT TO THE BLOOMBERG U.S. AGGREGGATE FLOAT
ADJUSTED INDEX OR ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE
FOREGOING, TO THE MAXIMUM EXTENT ALLOWED BY LAW, BLOOMBERG, ITS LICENSORS, AND
ITS AND THEIR RESPECTIVE EMPLOYEES, CONTRACTORS, AGENTS, SUPPLIERS, AND VENDORS
SHALL HAVE NO LIABILITY OR RESPONSIBILITY WHATSOEVER FOR ANY INJURY OR
DAMAGES—WHETHER DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, PUNITIVE OR
OTHERWISE—ARISING IN CONNECTION WITH THE TOTAL BOND MARKET INDEX PORTFOLIO OR
BLOOMBERG U.S. AGGREGGATE FLOAT ADJUSTED INDEX OR ANY DATA OR VALUES RELATING
THERETO—WHETHER ARISING FROM THEIR NEGLIGENCE OR OTHERWISE, EVEN IF NOTIFIED OF
THE POSSIBILITY THEREOF.
27
Glossary
of Investment Terms
Average
Maturity. The average length
of time until bonds held by a portfolio reach maturity and are repaid. In
general, the longer the average maturity, the more a portfolio's share price
fluctuates in response to changes in market interest rates. In calculating
average maturity, a portfolio uses a bond’s maturity or, if applicable, an
earlier date on which the advisor believes it is likely that a
maturity-shortening device (such as a call, put, refunding, prepayment, or
redemption provision or an adjustable coupon rate) will cause the bond to be
repaid.
Bond. A debt security
(IOU) issued by a corporation, a government, or a government agency in exchange
for the money the bondholder lends it. In most instances, the issuer agrees to
pay back the loan by a specific date and generally to make regular interest
payments until that date.
Capital
Gains Distributions. Payments to
portfolio shareholders of gains realized on securities that a portfolio has sold
at a profit, minus any realized losses.
Cash
Equivalent Investments. Cash deposits,
short-term bank deposits, and money market instruments that include U.S.
Treasury bills and notes, bank certificates of deposit (CDs), repurchase
agreements, commercial paper, and banker’s acceptances.
Corporate
Bond.
An IOU issued by a business that wants to borrow money. As with other types of
bonds, the issuer promises to repay the borrowed money by a specific date and
generally to make interest payments in the meantime.
Coupon
Rate.
The interest rate paid by the issuer of a debt security until its maturity. It
is expressed as an annual percentage of the face value of the
security.
Dividend
Distributions. Payments to
portfolio shareholders of income from interest or dividends generated by a
portfolio's investments.
Expense
Ratio.
A portfolio's total annual operating expenses expressed as a percentage of the
portfolio's average net assets. The expense ratio includes management and
administrative expenses, but it does not include the transaction costs of buying
and selling portfolio securities.
Face
Value.
The amount to be paid at a bond’s maturity; also known as the par value or
principal.
28
Fixed
Income Security. An investment,
such as a bond, representing a debt that must be repaid by a specified date, and
on which the borrower may pay a fixed, variable, or floating rate of
interest.
Float-Adjusted
Index.
An index that weights its constituent securities based on the value of the
constituent securities that are available for public trading, rather than the
value of all constituent securities. Some portion of an issuer’s securities may
be unavailable for public trading because, for example, those securities are
owned by company insiders on a restricted basis or by a government agency. By
excluding unavailable securities, float-adjusted indexes can produce a more
accurate picture of the returns actually experienced by investors in the
measured market.
Inception
Date.
The date on which the assets of a portfolio are first invested in accordance
with the portfolio's investment objective. For portfolios with a subscription
period, the inception date is the day after that period ends. Investment
performance is generally measured from the inception date.
Indexing. A low-cost
investment strategy in which a portfolio attempts to track—rather than
outperform—a specified market benchmark, or “index.”
International
Dollar-Denominated Bond. A bond denominated
in U.S. dollars issued by foreign governments and companies. Because the bond’s
value is designated in dollars, an investor is not exposed to foreign-currency
risk.
Investment-Grade
Bond.
A debt security whose credit quality is considered by independent bond rating
agencies, or through independent analysis conducted by a portfolio's advisor, to
be sufficient to ensure timely payment of principal and interest under current
economic circumstances. Debt securities rated in one of the four highest rating
categories are considered investment-grade. Other debt securities may be
considered by an advisor to be investment-grade.
Joint
Committed Credit Facility. The Portfolio
participates, along with other funds managed by Vanguard, in a committed credit
facility provided by a syndicate of lenders pursuant to a credit agreement that
may be renewed annually; each Vanguard fund is individually liable for its
borrowings, if any, under the credit facility. The amount and terms of the
committed credit facility are subject to approval by the Portfolio's board of
trustees and renegotiation with the lender syndicate on an annual
basis.
29
Mortgage-Backed
Security. A bond or
pass-through certificate that represents an interest in an underlying pool of
mortgages and is issued by various government agencies or private corporations.
Unlike ordinary fixed income securities, mortgage-backed securities include both
interest and principal as part of their regular payments.
Mutual
Fund.
An investment company that pools the money of many people and invests it in a
variety of securities in an effort to achieve a specific objective over
time.
New
York Stock Exchange (NYSE). A stock exchange
based in New York City that is open for regular trading on business days, Monday
through Friday, from 9:30 a.m. to 4 p.m., Eastern time.
Principal. The face value of
a debt instrument or the amount of money put into an investment.
Return
of Capital. A return of
capital occurs when a portfolio's distributions exceed its earnings in a fiscal
year. A return of capital is a return of all or part of your original investment
or amounts paid in excess of your original investment in a portfolio. In
general, a return of capital reduces your cost basis in a portfolio's shares and
is not taxable to you until your cost basis has been reduced to
zero.
Securities. Stocks, bonds,
money market instruments, and other investments.
Total
Return. A percentage
change, over a specified time period, in a portfolio's net asset value, assuming
the reinvestment of all distributions of dividends and capital
gains.
Volatility. The fluctuations
in value of a mutual fund or other security. The greater a portfolio's
volatility, the wider the fluctuations in its returns.
Yield. Income (interest
or dividends) earned by an investment, expressed as a percentage of the
investment’s price.
30
Connect
with Vanguard®
˃
vanguard.com
For
More Information
If you would
like more information about Vanguard Variable Insurance Funds Total Bond Market
Index Portfolio, the following documents are available free upon
request:
Annual/Semiannual
Reports to Shareholders
Additional
information about the Portfolio's investments is available in the Portfolio's
annual and semiannual reports to shareholders. In the annual report, you will
find a discussion of the market conditions and investment strategies that
significantly affected the Portfolio's performance during its last fiscal
year.
Statement
of Additional Information (SAI)
The SAI
provides more detailed information about the Portfolio and is incorporated by
reference into (and thus legally a part of) this prospectus.
To receive a
free copy of the latest annual or semiannual reports or the SAI, or to request
additional information about the Portfolio or other Vanguard funds, please visit
vanguard.com or contact us
as follows:
Telephone:
800-522-5555; Text telephone for people with hearing impairment:
800-749-7273
Information
Provided by the SEC
Reports and
other information about the Portfolio are available in the EDGAR database on the
SEC’s website at sec.gov, or you can receive copies of this information, for a
fee, by electronic request at the following email address:
[email protected].
Portfolio's
Investment Company Act file number: 811-05962
© 2023 The
Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.
P 257 042023
Vanguard Marketing Corporation, Distributor.
P 257 042023