Report : Investment | April 28, 2023

TDF Quarterly Review Q1 2023

New research, same conviction

When it comes to TDFs, we have long held the conviction that broad diversification is one of the key tenets of achieving long-term retirement goals. Our updated research reaffirms how and why international bonds continue to add value for TDF investors. It also upholds our belief that maintaining a meaningful allocation to this asset class (30% of the total fixed income exposure) is a sufficient way for investors to improve risk-adjusted returns within their portfolios.

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"(Re)validating the case for international bonds"

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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.

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