Long-Term Treasury Fund Admiral Shares (VUSUX)

 
 

OPTIONS as of
02/07/2014

Options Expense ratio Minimum
Admiral 0.10% N/A
Investor 0.20% $3,000

About our options  


 

Fees

Purchase fee:

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
Redemption fee:

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

Designation: Long Government
VUSUX
 inception on 02/12/2001
Earliest share class inception on 05/19/1986
$2.6 billion total net assets

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 03/31/2014
$1.6 billion net assets for
VUSUX
 as of 03/31/2014
29 holdings as of 03/31/2014
Benchmarked to the Barclays US Long Treasury Index
Turnover rate (Fiscal year-end  01/31/2014) 83.00%

STYLEBOX

Bond
Portfolio of long-maturity U.S. Treasury issues.



Expected range
Central tendency

About our styleboxes  

Investment approach



  • Long-term Treasury securities.
  • Seeks high and sustainable current income.
  • Average maturity of 15–30 years.
  • Negligible credit risk.
  • Significant exposure to interest-rate risk.

Total returns

View as:

as of 03/31/2014

10%
5
0
-5%
 
 
 
 
 
  1 year 3 year 5 year 10 year Since inception

02/12/2001

NAV 
– 4.42% 8.28% 4.79% 6.02% 6.73%
Benchmark

Barclays U.S. Long Treasury Bond Index

*
– 4.18% 8.34% 4.81% 6.12%

Note: Fee adjusted for mutual funds where applicable.

* Includes U.S. Treasury obligations with maturities of 10 years or more.

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.


People and process

Firms

Vanguard Fixed Income Group

Product management

Vanguard Long-Term Treasury Fund seeks a high and sustainable level of current income by investing primarily in long-term U.S. Treasury obligations with an average maturity of 15–30 years. The fund has negligible credit risk, but it has significant exposure to interest-rate risk. A minimum of 80% of assets are invested in Treasury securities, offering investors an investment targeting a specific segment of the U.S. Treasury yield curve. The balance of the fund may invest in high-quality, long-term bonds that provide additional income potential, such as government agency and mortgage-backed securities. The fund’s duration will be adjusted to reflect the advisor’s near-term interest rate outlook, the shape of the yield curve, and other factors.

Firm and manager details  

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

  Credit rating  VUSUX
U.S. Government 99.0%
Aaa 0.0%
Aa 0.0%
A 0.0%
Baa 0.0%
Ba 0.0%
B 0.0%
Caa 0.0%
Ca 0.0%
C 0.0%
Not Rated 1.0%
0%
100%
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 Moody’s Investors Service and Standard & Poor’s, and the higher rating for each issue is used.

Fundamentals

Bondas of 03/31/2014 VUSUX Benchmark

Barclays U.S. Long Treasury Bond Index

Number of bonds 29 41
Yield to maturity 3.39% 3.42%
Short-term reserves 0.64% N/A
Average duration 15.3 (years) 16.4 (years)
Average maturity 24.3 (years) 24.8 (years)
Average coupon 3.76% 4.04%

Risk and volatility as of 03/31/2014

  VUSUX Benchmark

Barclays U.S. Long Treasury Bond Index

R-squared N/A 0.99
Beta N/A 1.01
Alpha – 0.02 N/A
Standard deviation 12.83% 12.65%
Sharpe ratio 0.63 0.65

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 overall 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.
  • Call risk: The chance that during periods of falling interest rates, issuers of callable bonds may call (redeem) securities with higher coupons or interest rates before their maturity dates. The fund would then lose any price appreciation above the bond’s call price and would be forced to reinvest the unanticipated proceeds at lower interest rates, resulting in a decline in the fund’s income.
  • Manager risk: The chance that poor security selection or focus on securities in a particular sector, category, or group of companies will cause the fund to underperform relevant benchmarks or other funds with a similar investment objective.



 
 
 
 

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