28
| |
28
| |
31
| |
33
| |
37
| |
38
| |
40
| |
44
| |
45
| |
47
| |
47
| |
49
|
| |
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
|
Since
Inception
(May
31,
2013)
|
Vanguard
Total International Bond Index Fund
Admiral
Shares
|
|
|
|
Return
Before Taxes
|
4.54% |
4.46% |
4.20% |
Return
After Taxes on Distributions
|
4.11 |
3.48 |
3.32 |
Return
After Taxes on Distributions and Sale of Fund Shares
|
2.72 |
3.00 |
2.86 |
Comparative
Indexes
(reflect
no deduction for fees, expenses, or taxes)
|
|
|
|
Bloomberg
Barclays Global Aggregate ex-USD Float Adjusted
RIC
Capped Index (USD Hedged)
|
4.75% |
4.67% |
4.45% |
Bloomberg
Barclays Global Aggregate Index ex USD
|
10.11 |
4.89 |
2.30 |
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
2019 was 0.88%, or $8.80 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. 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 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
Barclays Global Aggregate ex-USD
Float
Adjusted RIC Capped Index (USD Hedged) | |
Japan
|
17.7%
|
France
|
12.3
|
Germany
|
9.9
|
Italy
|
7.8
|
United
Kingdom |
7.1
|
Canada
|
5.8
|
Spain
|
5.5
|
Total
|
66.0%
|
Bloomberg
Barclays Global Aggregate ex-USD
Float
Adjusted RIC Capped Index (USD Hedged) | |
Government
of Japan |
16.5%
|
Government
of France |
8.8
|
Government
of Italy |
7.1
|
Government
of Germany |
6.7
|
Government
of the United Kingdom |
4.8
|
Total
|
43.9%
|
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
accounting,
auditing, legal, tax, and financial reporting 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 less government supervision and regulation than their
counterparts
in the United States. 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
|
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
October 31, | ||||
For
a Share Outstanding Throughout Each Period |
2020
|
2019
|
2018
|
2017
|
2016
|
Net
Asset Value, Beginning of Period
|
$23.35
|
$21.79
|
$21.91
|
$22.04
|
$21.21
|
Investment
Operations
|
|
|
|
|
|
Net
Investment Income |
0.2231
|
0.2461
|
0.2301
|
0.2311
|
0.277
|
Net
Realized and Unrealized Gain (Loss) on
Investments
|
0.489
|
1.976
|
0.137
|
0.017
|
0.874
|
Total
from Investment Operations |
0.712
|
2.222
|
0.367
|
0.248
|
1.151
|
Distributions
|
|
|
|
|
|
Dividends
from Net Investment Income |
(0.742)
|
(0.662)
|
(0.487)
|
(0.378)
|
(0.321)
|
Distributions
from Realized Capital Gains |
—
|
—
|
—
|
—
|
—
|
Total
Distributions |
(0.742)
|
(0.662)
|
(0.487)
|
(0.378)
|
(0.321)
|
Net
Asset Value, End of Period
|
$23.32
|
$23.35
|
$21.79
|
$21.91
|
$22.04
|
Total
Return2
|
3.15%
|
10.41%
|
1.70%
|
1.16%
|
5.46%
|
Ratios/Supplemental
Data
|
|
|
|
|
|
Net
Assets, End of Period (Millions) |
$50,818
|
$51,889
|
$43,550
|
$36,072
|
$20,572
|
Ratio
of Total Expenses to Average Net Assets |
0.11%
|
0.11%
|
0.11%
|
0.11%
|
0.12%
|
Ratio
of Net Investment Income to Average Net
Assets
|
0.97%
|
1.09%
|
1.05%
|
1.07%
|
1.21%
|
Portfolio
Turnover Rate
|
31%3
|
26%
|
22%
|
19%
|
20%
|
Web
|
|
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|
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|
|
Inception
Date
|
Newspaper
Abbreviation
|
Vanguard
Fund
Number
|
CUSIP
Number
|
Total
International Bond
Index
Fund
|
|
|
|
|
Admiral
Shares |
5/31/2013
|
TotIntBdIxFdAdm
|
511
|
92203J308
|