Total Bond Market II Index Fund Institutional Shares (VTBNX)

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

 
 

OPTIONS as of
04/29/2013

Options Expense ratio Minimum
Investor 0.12% Note
Inst 0.05% Note

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: Intermediate-Term Bond
VTBNX
 inception on 02/17/2009
Earliest share class inception on 01/26/2009
$76.1 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
$28.0 billion net assets for
VTBNX
 as of 03/31/2014
6,103 holdings as of 03/31/2014
Indexed to the Barclays US Agg Float Adj Index
Turnover rate (Fiscal year-end  12/31/2013) 111.00%

STYLEBOX

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



Expected range
Central tendency

About our styleboxes  

Investment approach



  • Seeks to track the performance of the Barclays U.S. Aggregate Float Adjusted Index.
  • Broadly diversified exposure to investment-grade U.S. bond market.
  • Passively managed using index sampling.
  • Intermediate-duration portfolio.
  • Provides moderate current income with high credit quality.

Total returns

View as:

as of 03/31/2014

5%
4
3
2
1
0
-1%
 
 
 
 
  1 year 3 year 5 year 10 year Since inception

02/17/2009

NAV 
– 0.25% 3.66% 4.65% 4.58%
Benchmark

Spliced Barclays U.S. Aggregate Float Adjusted Index

*
– 0.05% 3.83% 4.86%

Note: Fee adjusted for mutual funds where applicable.

* Barclays U.S. Aggregate Bond Index through December 31, 2009; Barclays U.S. Aggregate 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 03/31/2014

  Credit rating  VTBNX
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.

Fundamentals

Bondas of 03/31/2014 VTBNX 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
Average duration 5.6 (years) 5.6 (years)
Average maturity 7.6 (years) 7.6 (years)
Average coupon 3.17% 3.28%

Risk and volatility as of 03/31/2014

  VTBNX Benchmark

Spliced Barclays U.S. Aggregate Float Adjusted Index

R-squared N/A 0.99
Beta N/A 1.02
Alpha – 0.03 N/A
Standard deviation 2.93% 2.86%
Sharpe ratio 1.21 1.32

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.
  • Income risk: The chance that the fund’s income will decline because of falling interest rates.
  • Credit risk: The chance that a bond issuer will fail to pay interest and 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.
  • Call risk: The chance that during periods of falling interest rates, the issuer of a bond will repay—or call—securities with higher coupons, or interest rates, before their maturity dates. Forced to reinvest the unanticipated proceeds at lower interest rates, the fund would experience a decline in income and lose the opportunity for additional price appreciation associated with falling interest rates.
  • Index sampling risk: The chance that the securities selected for the fund will not provide investment performance matching that of the index.



 
 
 
 

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