| |
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 $10,000)
|
$ |
| |
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 Bond Market Index Fund Admiral Shares
|
|
|
|
Return
Before Taxes
|
7.72% |
4.46% |
3.80% |
Return
After Taxes on Distributions
|
6.69 |
3.34 |
2.65 |
Return
After Taxes on Distributions and Sale of Fund Shares
|
4.58 |
2.93 |
2.44 |
Bloomberg
Barclays U.S. Aggregate Float Adjusted Index
(reflects
no deduction for fees, expenses, or taxes)
|
7.75% |
4.53% |
3.89% |
| |
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 $10,000)
|
$ |
| |
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
Short-Term Bond Index Fund Admiral Shares
|
|
|
|
Return
Before Taxes
|
4.69% |
2.70% |
2.09% |
Return
After Taxes on Distributions
|
3.93 |
1.92 |
1.39 |
Return
After Taxes on Distributions and Sale of Fund Shares
|
2.77 |
1.72 |
1.32 |
Comparative
Indexes
(reflect
no deduction for fees, expenses, or taxes)
|
|
|
|
Bloomberg
Barclays U.S. 1-5 Year Gov/Credit Float
Adjusted
Index
|
4.71% |
2.77% |
2.19% |
Bloomberg
Barclays U.S. Aggregate Float Adjusted Index
|
7.75 |
4.53 |
3.89 |
| |
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 $10,000)
|
$ |
| |
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
Intermediate-Term Bond Index Fund
Admiral
Shares
|
|
|
|
Return
Before Taxes
|
9.80% |
5.22% |
4.80% |
Return
After Taxes on Distributions
|
8.61 |
4.02 |
3.45 |
Return
After Taxes on Distributions and Sale of Fund Shares
|
5.91 |
3.50 |
3.20 |
Comparative
Indexes
(reflect
no deduction for fees, expenses, or taxes)
|
|
|
|
Bloomberg
Barclays U.S. 5-10 Year Gov/Credit Float
Adjusted
Index
|
9.73% |
5.31% |
4.88% |
Bloomberg
Barclays U.S. Aggregate Float Adjusted Index
|
7.75 |
4.53 |
3.89 |
| |
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 $10,000)
|
$ |
| |
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
|
Since
Inception
(Feb.
7,
2019)
|
Vanguard
Long-Term Bond Index Fund Admiral Shares
|
|
|
Return
Before Taxes
|
15.65% |
16.99% |
Return
After Taxes on Distributions
|
13.41 |
14.96 |
Return
After Taxes on Distributions and Sale of Fund Shares
|
9.68 |
12.37 |
Comparative
Indexes
(reflect
no deduction for fees, expenses, or taxes)
|
|
|
Bloomberg
Barclays U.S. Long Gov/Credit Float
Adjusted
Index
|
16.12% |
17.33% |
Bloomberg
Barclays U.S. Aggregate Float Adjusted Index
|
7.75 |
8.14 |
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. 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.
|
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.
|
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 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.
|
Vanguard
Fund |
Number
of
Bonds
Held |
Number
of Bonds
in
Target Index |
Total
Bond Market Index Fund |
9,995
|
11,998
|
Short-Term
Bond Index Fund |
2,660
|
3,081
|
Intermediate-Term
Bond Index Fund |
2,129
|
2,229
|
Long-Term
Bond Index Fund |
2,670
|
2,873
|
Vanguard
Fund |
U.S.
Government/
Agency
|
Corporate
|
Mortgage-
Backed
|
International
Dollar-
Denominated
|
Other
|
Total
|
Total
Bond Market
Index
Fund |
42.2% |
29.6% |
22.8% |
5.1% |
0.5% |
100% |
Short-Term
Bond
Index
Fund |
66.0 |
26.8 |
— |
7.2 |
0.1 |
100 |
Intermediate-Term
Bond
Index Fund |
49.5 |
45.3 |
— |
4.9 |
0.3 |
100 |
Long-Term
Bond
Index
Fund |
39.7 |
52.8 |
— |
7.5 |
— |
100 |
Plain
Talk About U.S. Government-Sponsored Enterprises
|
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.
|
Vanguard
Fund |
Transaction
Fee |
Aggregate
Purchases |
Total
Bond Market Index Fund |
0.25%
|
Over
$500 million |
Short-Term
Bond Index Fund |
0.15
|
Over
$200 million |
Intermediate-Term
Bond Index Fund |
0.25
|
Over
$100 million |
Plain
Talk About Vanguard’s Unique Corporate Structure
|
The
Vanguard Group 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.
|
|
Year Ended
December 31, | ||||
For
a Share Outstanding Throughout Each Period |
2020
|
2019
|
2018
|
2017
|
2016
|
Net
Asset Value, Beginning of Period
|
$11.05
|
$10.45
|
$10.75
|
$10.65
|
$10.64
|
Investment
Operations
|
|
|
|
|
|
Net
Investment Income |
0.2581
|
0.3011
|
0.2901
|
0.2711
|
0.265
|
Net
Realized and Unrealized Gain (Loss) on
Investments
|
0.590
|
0.601
|
(0.297)
|
0.105
|
0.015
|
Total
from Investment Operations |
0.848
|
0.902
|
(0.007)
|
0.376
|
0.280
|
Distributions
|
|
|
|
|
|
Dividends
from Net Investment Income |
(0.259)
|
(0.302)
|
(0.290)
|
(0.271)
|
(0.265)
|
Distributions
from Realized Capital Gains |
(0.019)
|
—
|
(0.003)
|
(0.005)
|
(0.005)
|
Total
Distributions |
(0.278)
|
(0.302)
|
(0.293)
|
(0.276)
|
(0.270)
|
Net
Asset Value, End of Period
|
$11.62
|
$11.05
|
$10.45
|
$10.75
|
$10.65
|
Total
Return2
|
7.72%
|
8.71%
|
–0.03%
|
3.56%
|
2.60%
|
Ratios/Supplemental
Data
|
|
|
|
|
|
Net
Assets, End of Period (Millions) |
$120,909
|
$107,098
|
$88,281
|
$82,839
|
$72,592
|
Ratio
of Total Expenses to Average Net Assets |
0.05%
|
0.05%
|
0.05%
|
0.05%
|
0.05%
|
Ratio
of Net Investment Income to Average Net
Assets
|
2.25%
|
2.78%
|
2.78%
|
2.52%
|
2.40%
|
Portfolio
Turnover Rate3,4
|
79%
|
31%
|
54%
|
55%
|
61%
|
|
Year Ended
December 31, | ||||
For
a Share Outstanding Throughout Each Period |
2020
|
2019
|
2018
|
2017
|
2016
|
Net
Asset Value, Beginning of Period
|
$10.57
|
$10.31
|
$10.38
|
$10.43
|
$10.43
|
Investment
Operations
|
|
|
|
|
|
Net
Investment Income |
0.1921
|
0.2371
|
0.2071
|
0.1721
|
0.154
|
Net
Realized and Unrealized Gain (Loss) on
Investments
|
0.301
|
0.260
|
(0.070)
|
(0.050)
|
0.002
|
Total
from Investment Operations |
0.493
|
0.497
|
0.137
|
0.122
|
0.156
|
Distributions
|
|
|
|
|
|
Dividends
from Net Investment Income |
(0.193)
|
(0.237)
|
(0.207)
|
(0.172)
|
(0.154)
|
Distributions
from Realized Capital Gains |
—
|
—
|
—
|
(.000)2
|
(0.002)
|
Total
Distributions |
(0.193)
|
(0.237)
|
(0.207)
|
(0.172)
|
(0.156)
|
Net
Asset Value, End of Period
|
$10.87
|
$10.57
|
$10.31
|
$10.38
|
$10.43
|
Total
Return3
|
4.69%
|
4.86%
|
1.35%
|
1.18%
|
1.49%
|
Ratios/Supplemental
Data
|
|
|
|
|
|
Net
Assets, End of Period (Millions) |
$18,543
|
$15,379
|
$13,812
|
$16,034
|
$15,335
|
Ratio
of Total Expenses to Average Net Assets |
0.07%
|
0.07%
|
0.07%
|
0.07%
|
0.07%
|
Ratio
of Net Investment Income to Average Net
Assets
|
1.77%
|
2.26%
|
2.02%
|
1.65%
|
1.46%
|
Portfolio
Turnover Rate4
|
49%
|
44%
|
48%
|
50%
|
51%
|
|
Year Ended
December 31, | ||||
For
a Share Outstanding Throughout Each Period |
2020
|
2019
|
2018
|
2017
|
2016
|
Net
Asset Value, Beginning of Period
|
$11.81
|
$11.02
|
$11.36
|
$11.24
|
$11.26
|
Investment
Operations
|
|
|
|
|
|
Net
Investment Income |
0.2801
|
0.3221
|
0.3151
|
0.2981
|
0.299
|
Net
Realized and Unrealized Gain (Loss) on
Investments
|
0.869
|
0.790
|
(0.341)
|
0.132
|
0.025
|
Total
from Investment Operations |
1.149
|
1.112
|
(0.026)
|
0.430
|
0.324
|
Distributions
|
|
|
|
|
|
Dividends
from Net Investment Income |
(0.281)
|
(0.322)
|
(0.314)
|
(0.299)
|
(0.299)
|
Distributions
from Realized Capital Gains |
(0.088)
|
—
|
—
|
(0.011)
|
(0.045)
|
Total
Distributions |
(0.369)
|
(0.322)
|
(0.314)
|
(0.310)
|
(0.344)
|
Net
Asset Value, End of Period
|
$12.59
|
$11.81
|
$11.02
|
$11.36
|
$11.24
|
Total
Return2
|
9.80%
|
10.18%
|
–0.17%
|
3.85%
|
2.83%
|
Ratios/Supplemental
Data
|
|
|
|
|
|
Net
Assets, End of Period (Millions) |
$20,241
|
$16,776
|
$12,830
|
$13,477
|
$11,954
|
Ratio
of Total Expenses to Average Net Assets |
0.07%
|
0.07%
|
0.07%
|
0.07%
|
0.07%
|
Ratio
of Net Investment Income to Average Net
Assets
|
2.25%
|
2.78%
|
2.87%
|
2.62%
|
2.56%
|
Portfolio
Turnover Rate3
|
55%
|
50%
|
53%
|
55%
|
57%
|
|
Year Ended
December 31, |
February 7,
20191 to December
31, |
For
a Share Outstanding Throughout
Each
Period |
2020
|
2019
|
Net
Asset Value, Beginning of Period
|
$15.18
|
$13.48
|
Investment
Operations
|
|
|
Net
Investment Income2
|
0.490
|
0.465
|
Net
Realized and Unrealized Gain (Loss)
on
Investments |
1.950
|
1.728
|
Total
from Investment Operations |
2.440
|
2.193
|
Distributions
|
|
|
Dividends
from Net Investment Income |
(0.490)
|
(0.467)
|
Distributions
from Realized Capital
Gains
|
(0.480)
|
(0.026)
|
Total
Distributions |
(0.970)
|
(0.493)
|
Net
Asset Value, End of Period
|
$16.65
|
$15.18
|
Total
Return3
|
16.23%
|
16.43%
|
Ratios/Supplemental
Data
|
|
|
Net
Assets, End of Period (Millions) |
$3,267
|
$2,998
|
Ratio
of Total Expenses to Average Net
Assets
|
0.07%
|
0.07%4
|
Ratio
of Net Investment Income to
Average
Net Assets |
2.95%
|
3.44%4
|
Portfolio
Turnover Rate5
|
48%
|
33%6
|
Vanguard
Fund |
Transaction
Fee |
Aggregate
Purchases |
Total
Bond Market Index Fund |
0.25%
|
Over
$500 million |
Short-Term
Bond Index Fund |
0.15
|
Over
$200 million |
Intermediate-Term
Bond Index Fund |
0.25
|
Over
$100 million |
Web
|
|
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|
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the most complete source of Vanguard news
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hours a day, 7 days a week |
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| |
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|
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|
Financial
Advisor and Intermediary
Sales
Support 800-997-2798 |
For
information and services for financial intermediaries
including
financial advisors, broker-dealers, trust
institutions,
and insurance companies |
Financial
Advisory and Intermediary
Trading
Support 800-669-0498 |
For
account information and trading support for
financial
intermediaries including financial advisors,
broker-dealers,
trust institutions, and insurance
companies
|
|
Inception
Date
|
Newspaper
Abbreviation
|
Vanguard
Fund
Number
|
CUSIP
Number
|
Total
Bond Market Index Fund
|
|
|
|
|
Admiral
Shares |
11/12/2001
|
TotBdAdml
|
584
|
921937603
|
Short-Term
Bond Index Fund
|
|
|
|
|
Admiral
Shares |
11/12/2001
|
STBondAdml
|
5132
|
921937702
|
Intermediate-Term
Bond Index
Fund
|
|
|
|
|
Admiral
Shares |
11/12/2001
|
ITBondAdml
|
5314
|
921937801
|
Long-Term
Bond Index Fund
|
|
|
|
|
Admiral
Shares |
2/7/2019
|
LTBondAdml
|
2022
|
921937652
|