Report : Investment | April 28, 2023

Index Funds Quarterly Review Q1 2023

Resilient economy leads to Q1 positive capital market returns

After a volatile 2022, both the equities and fixed income markets experienced gains during the first quarter of 2023. The U.S. economy and inflation, despite showing some signs of softening, have been surprisingly resilient in the face of sharp interest rate increases. However, given the fact that the impact of increased rates has not fully worked through the economy yet, there is still a great deal of uncertainty.

Get the full report at the bottom of this page.

Performance of key Vanguard index funds


Fund name

(Inception date)












Vanguard Total Bond Market Index Fund


-4.71% -4.65% 1.67% 3.16% -4.70%  

Vanguard Total International Bond Index Fund


-5.19% -3.28% -0.02% 3.54% -5.07%  

Vanguard Total Stock Market Index Fund


-16.84% -4.46% 7.16% 7.15% -8.77%  

Vanguard Total International Stock Index Fund


-12.85% -10.52% 14.72% 6.65% -4.60%  

Vanguard Short-Term Inflation-Protected Securities Index Fund


-1.13% -2.64% 1.27% 2.28% -0.30%  

Source of performance figures: Vanguard, Institutional share class, as of March 31, 2023.

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. For performance data current to the most recent month-end, visit our website at Standard performance of the funds can be located in the Quarterly Review Appendix.

Get report

By providing your personal information, you agree to receive future communication from Vanguard. For more information on how Vanguard entities may collect and use certain information about you, please visit our privacy center.