Long-Term Bond Index Fund Institutional Shares (VBLLX)

OPTIONS as of
04/26/2018

Options Expense ratio Minimum
Investor 0.15% N/A
Inst 0.05% $5.0 Million
Inst Plus 0.04% $100.0 Million
ETF 0.07%

Vanguard ETF Shares can be bought and sold only through a broker (who may charge a commission) and cannot be redeemed with the issuing fund. The market price of Vanguard ETF Shares may be more or less than net asset value.

About our options  


 

Fees

A fee charged by some mutual funds when an investor buys shares. This fee is not a sales charge or load because it is paid directly to the fund to offset the costs of trading certain securities.

 None

A fee charged by some mutual funds when an investor sells shares. A redemption fee differs from a back-end load because the money is paid back into the fund. Many funds charge redemption fees only when shares are bought and then sold within a specific period of time, generally in an effort to discourage market-timing and short-term trading. Some brokers also charge their clients redemption fees for the sale of securities.

 None

KEY FACTS

Product type: Long-Term Bond
VBLLX
 inception on 02/02/2006
Earliest share class inception on 03/01/1994
$10.4 billion

This represents the total net assets for all share classes of Vanguard's U.S. funds, as well as any collective trust that shares the same investment strategy, management and holdings.

 as of 10/31/2018
$2.6 billion net assets for
VBLLX
 as of 10/31/2018
2,141 holdings as of 10/31/2018
Indexed to the BloomBarc US Long Gov/Cr FltAdj Idx (BFALTRUU)
Turnover rate (Fiscal year-end  12/31/2017) 40.70%
CUSIP: 921937876

STYLEBOX

Bond
Invests in U.S. Treasury, agency, and investment-grade corporate securities with long duration.



Central tendency
Expected range

How to read our stylebox  

Investment approach



  • Seeks to track the performance of the Bloomberg Barclays U.S. Long Government/Credit Float Adjusted Index.
  • Passively managed using index sampling.
  • Diversified exposure to the long-term, investment-grade U.S. bond market.
  • Provides high current income with high credit quality.

Total returns

as of 09/30/2018

View as:

as of 09/30/2018

8%
6
4
2
0
-2
-4%
 
 
 
 
 
  1 year 3 year 5 year 10 year

02/02/2006

NAV 
– 2.75% 3.40% 5.18% 7.11% 6.12%

Spliced Bloomberg Barclays U.S. Long Government/Credit Float Adjusted Index

*
– 2.73% 3.43% 5.18% 7.11%

Note: Fee adjusted for mutual funds where applicable.

* Bloomberg Barclays U.S. Long Government/Credit Bond Index through December 31, 2009; Bloomberg Barclays U.S. Long Government/Credit Float Adjusted Index thereafter.

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited.


Distribution by credit quality(% of fund) as of 10/31/2018

  Credit rating  VBLLX
U.S. Government 41.8%
Aaa 2.4%
Aa 5.5%
A 21.1%
Baa 29.2%
< Baa 0.0%
0%
45%
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.

Fundamentals

Bond
as of 10/31/2018
VBLLX

Bloomberg Barclays U.S. Long Government/Credit Float Adjusted Index

Number of bonds 2,141 2,195
Yield to maturity 4.31% 4.32%
Short-term reserves 1.15% N/A
Average duration 14.6 (years) 14.6 (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.

23.9 (years) 23.9 (years)
Average coupon 4.37% 4.38%

Risk and volatility as of 10/31/2018

  VBLLX

Spliced Bloomberg Barclays U.S. Long Government/Credit Float Adjusted Index

R-squared N/A 0.99
Beta N/A 1.01
Alpha – 0.01 N/A
Standard deviation 7.29% 7.20%
Sharpe ratio 0.16 0.18

Risk and volatility are based on the share class with the earliest inception date.

Risk measures are calculated from trailing 36-month fund returns relative to the associated benchmarks.

An investment in the fund could lose money over short or even long periods. You should expect the fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall bond market. The fund’s performance could be hurt by:

  • Interest rate risk: The chance that bond prices will decline because of rising interest rates. Interest rate risk should be high for the fund because it invests primarily in long-term bonds, whose prices are much more sensitive to interest rate changes than are the prices of short-term bonds.
  • Credit risk: 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. Credit risk should be low for the fund because it purchases only bonds that are of investment-grade quality.
  • Income risk: The chance that the fund’s income will decline because of falling interest rates.
  • Index sampling risk: The chance that the securities selected for the fund, in the aggregate, will not provide investment performance matching that of the index. Index sampling risk for the fund should be low.