Intermediate-Term Government Bond Index Fund Institutional Shares (VIIGX)

 
 

OPTIONS as of
12/20/2013

Options Expense ratio Minimum
Admiral 0.12% N/A
Inst 0.09% $5,000,000
ETF 0.12% Note

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

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 Government
VIIGX
 inception on 03/19/2010
Earliest share class inception on 11/19/2009
$349.5 million 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
$51.5 million net assets for
VIIGX
 as of 03/31/2014
167 holdings as of 03/31/2014
Indexed to the Barclays US 3-10Yr Gov Flt Adj Idx
Turnover rate (Fiscal year-end  08/31/2013) 53.70%

STYLEBOX

Bond
Portfolio of intermediate-term U.S. Treasury and agency bonds.



Expected range
Central tendency

About our styleboxes  

Investment approach



  • Seeks to track the performance of the Barclays U.S. 3–10 Year Government Float Adjusted Index.
  • Diversified exposure to the intermediate-term U.S. government bond market.
  • Follows a passively managed, index-sampling approach.
  • Provides current income with high credit quality.

Total returns

View as:

as of 03/31/2014

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

03/19/2010

NAV 
– 1.80% 3.59% 3.88%
Benchmark

Barclays U.S. 3-10 Year Government Float Adjusted Index

*
– 1.74% 3.59%

Note: Fee adjusted for mutual funds where applicable.

* Includes U.S. Treasury and agency obligations with maturities of 3 to 10 years.

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  VIIGX
U.S. Government 99.8%
Aaa 0.2%
Aa 0.0%
A 0.0%
Baa 0.0%
< Baa 0.0%
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 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 VIIGX Benchmark

Barclays U.S. 3-10 Year Government Float Adjusted Index

Number of bonds 167 465
Yield to maturity 1.80% 1.81%
Short-term reserves 0.82% N/A
Average duration 5.2 (years) 5.2 (years)
Average maturity 5.5 (years) 5.5 (years)
Average coupon 2.21% 2.12%

Risk and volatility as of 03/31/2014

  VIIGX Benchmark

Barclays U.S. 3-10 Year Government Float Adjusted Index

R-squared N/A 0.99
Beta N/A 1.02
Alpha – 0.01 N/A
Standard deviation 3.57% 3.50%
Sharpe ratio 0.98 1.01

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.

The fund is designed for investors with a low to moderate tolerance for risk; however, 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 moderate for the fund because it invests primarily in intermediate-term bonds, whose prices are less sensitive to interest rate changes than are the prices of long-term bonds.
  • 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. Credit risk should be low for the fund because it purchases only bonds that are of investment-grade quality.
  • 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.



 
 
 
 

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