Total Bond Market II Index Fund Investor Shares (VTBIX)

Available only as an underlying investment in Vanguard funds of funds or similar products.

 
 

Characteristics

Stylebox

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



Expected range
Central tendency

About our styleboxes  

 

 

Fundamentals as of 03/31/2014


 
 
 
  VTBIX Benchmark

Barclays U.S. Aggregate Float Adjusted Index

Number of bonds 6,103 8,732
Yield to maturity 2.29% 2.31%
Short-term reserves 0.57% N/A
 
  VTBIX Benchmark

Barclays U.S. Aggregate Float Adjusted Index

Average duration 5.6 (years) 5.6 (years)
Average maturity 7.6 (years) 7.6 (years)
Average coupon 3.17% 3.28%
 

Composition

Distribution by credit quality(% of fund) as of 03/31/2014

 

Select time

  Credit rating  VTBIX
U.S. Government 65.6%
Aaa 5.1%
Aa 4.0%
A 12.2%
Baa 13.1%
< 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. 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, Fitch Ratings, and Standard & Poor’s. 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 03/31/2014

 
  Issuer  VTBIX
Treasury 40.2%
Government Mortgage-Backed 21.7%
Industrial 14.0%
Finance 8.2%
Foreign 6.4%
Agency 3.7%
Utilities 2.9%
Commercial Mortgage-Backed 1.7%
Other 0.8%
Asset-Backed 0.4%
0%
45%
Total 100.0%
 

Distribution by maturity (% of fund) as of 03/31/2014

Select time

  Maturity  VTBIX
Under 1 Year 2.0%
1 - 3 Years 26.5%
3 - 5 Years 20.6%
5 - 10 Years 35.1%
10 - 20 Years 5.3%
20 - 30 Years 10.1%
Over 30 Years 0.4%
0%
40%
Total 100.0%
 

People and process

Firms

Vanguard Fixed Income Group

Product management

Vanguard Total Bond Market II Index Fund seeks to track the investment performance of the 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.

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 and managing director, Mortimer J. Buckley oversees Vanguard’s Equity Investment and Fixed Income Groups. Gregory Davis, 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. He has managed investment portfolios since 2000, and has been with Vanguard since 1999. Kenneth E. Volpert, CFA, principal and head of Vanguard’s Taxable Bond Group, has direct oversight responsibility for all taxable bond funds managed by the Fixed Income Group. He has managed investment portfolios since 1982 and has been with Vanguard since 1992. Christopher W. Alwine, CFA, principal and head of Vanguard’s Municipal Bond Funds, has direct oversight responsibility for all tax-exempt bond funds managed by the Fixed Income Group. He has managed investment portfolios since 1996 and has been with Vanguard since 1990. Pamela Wisehaupt Tynan, principal and head of Vanguard’s Municipal Money Market Funds, has direct oversight responsibility for all tax-exempt money market funds managed by the Fixed Income Group. She has managed investment portfolios since 1988 and has been with Vanguard since 1982. 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 II Index Fund since 2009.

Investment Manager Biography

Joshua C. Barrickman, CFA, Principal, Head of Bond Index Group

  • Portfolio manager.
  • Advised the fund since 2010.
  • Worked in investment management since 1999.
  • B.S., Ohio Northern University.
  • M.B.A., Lehigh University.

 
 
 
 

Connect with us®

 
© 1995–2014  The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, distributor.
Your use of this site signifies that you accept our terms & conditions of use.
Obtain prospectus