Total Bond Market Index Fund Admiral Shares (VBTLX)

Characteristics

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Bonds
Invests in U.S. Treasury, investment-grade corporate, mortgage-backed, and asset-backed securities.



Central tendency
Expected range

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Fundamentals
as of 12/31/2018


  VBTLX

Bloomberg Barclays U.S. Aggregate Float Adjusted Index

Number of bonds 8,582 10,248
Yield to maturity 3.27% 3.28%
Short-term reserves 0.27% N/A
  VBTLX

Bloomberg Barclays U.S. Aggregate Float Adjusted Index

Average duration 5.9 (years) 5.9 (years)

Average effective maturity (taxable bond funds and balanced funds except Tax-Managed Balanced)
Average Effective Maturity is defined as the average length of time until fixed income securities held by a fund reach maturity and are repaid, taking into consideration that an action such as a call or refunding may cause some bonds to be repaid before they mature.

Average stated maturity (municipal bond funds and Tax-Managed Balanced)
Average stated maturity represents the average of the stated maturity dates for all fixed income securities held by the fund.

Average maturity (money market funds only)
Average maturity represents the weighted average maturity of the fund's holdings using the date of the next interest rate adjustment for certain adjustable-rate securities held by the fund.

8.3 (years) 8.2 (years)
Average coupon 3.17% 3.18%

Composition

Distribution by credit quality(% of fund) 
as of 12/31/2018

  Credit rating  VBTLX
U.S. Government 65.5%
Aaa 5.5%
Aa 3.4%
A 10.7%
Baa 14.9%
< Baa 0.0%
0%
70%
Total 100.0%
* Credit-quality ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). ”NR” is used to classify securities for which a rating is not available. NR securities may include a fund’s investment in Vanguard Market Liquidity Fund or Vanguard Municipal Cash Management Fund, each of which invests in high-quality money market instruments and may serve as a cash management vehicle for the Vanguard funds, trusts, and accounts. U.S. Treasury, U.S. Agency, and U.S. Agency mortgage-backed securities appear under ”U.S. Government.” Credit-quality ratings for each issue are obtained from Barclays using ratings derived from Moody’s Investors Service (Moody’s), Fitch Ratings (Fitch), and Standard & Poor’s (S&P). When ratings from all three agencies are available, the median rating is used. When ratings are available from two of the agencies, the lower rating is used. When one rating is available, that rating is used.

Distribution by issuer type  (% of fund) 
as of 12/31/2018

  Issuer  VBTLX
Treasury 41.8%
Government Mortgage-Backed 22.1%
Industrial 16.0%
Finance 8.7%
Foreign 5.2%
Commercial Mortgage-Backed 1.9%
Utilities 1.9%
Agency 1.5%
Other 0.5%
Asset-Backed 0.4%
0%
45%
Total 100.0%

Distribution by effective maturity (taxable bond funds and balanced funds except Tax-Managed Balanced)
Represents the percentage of fund assets in each maturity category. Effective Maturity methodology is used to determine the maturity category each holding is allocated to. Effective Maturity is defined as the length of time until a fixed income security held by a fund reaches maturity and is repaid, taking into consideration that an action such as a call or refunding may cause some bonds to be repaid before they mature.

Distribution by stated maturity (municipal bond funds and Tax-Managed Balanced)
Represents the percentage of fund assets in each maturity category. Stated Maturity methodology is used to determine the maturity category each holding is allocated to. Stated Maturity is defined as the stated maturity date for each fixed income security held by the fund.

(% of fund) 
as of 12/31/2018
  Maturity  VBTLX
Under 1 Year 0.4%
1 - 3 Years 23.8%
3 - 5 Years 19.4%
5 - 10 Years 39.5%
10 - 20 Years 3.7%
20 - 30 Years 12.7%
Over 30 Years 0.5%
0%
40%
Total 100.0%

People and process

Firms

Vanguard Fixed Income Group

Product management

Vanguard Total Bond Market Index Fund seeks to track the investment performance of the Bloomberg Barclays U.S. Aggregate Float Adjusted Index, an unmanaged benchmark representing the broad U.S. bond market. The fund invests in investment-grade corporate, U.S. Treasury, mortgage-backed, and asset-backed securities with short, intermediate, and long maturities in excess of one year, resulting in a portfolio of intermediate duration. The fund’s passive investment style uses a sampling technique to closely match key benchmark characteristics: sector weight, coupon, maturity, effective duration, convexity, and credit quality. Optimized sampling is designed to avoid the expense and impracticality of fully replicating the index.

See the fund's prospectus for more information on the currency risk.

Vanguard Fixed Income Group

Firm description

Launched in 1975, The Vanguard Group, Malvern, Pennsylvania, is among the world’s largest equity and fixed income managers. As chief investment officer, Gregory Davis, CFA, oversees Vanguard’s Equity Index, Quantitative Equity, and Fixed Income Groups. John Hollyer, CFA, principal and global head of Fixed Income Group, has direct oversight responsibility for all money market, bond, and stable value portfolios managed by the Fixed Income Group. The Fixed Income Group offers actively managed investments in U.S. Treasury, corporate, and tax-exempt securities, as well as passively managed index portfolios. Since 1981, it has refined techniques in total-return management, credit research, and index sampling to seek to deliver consistent performance with transparency and risk control. The group has advised Vanguard Total Bond Market Index Fund since 1986.

Investment Manager Biography

Joshua C. Barrickman, CFA, Principal, Head of Fixed Income Indexing Americas

  • Portfolio manager.
  • Advised the fund since 2013.
  • Worked in investment management since 1999.
  • B.S., Ohio Northern University.
  • M.B.A., Lehigh University.