Vanguard Bond Index Fund Total Bond Mkt Index Fund Institutional Share (VBTIX)

Overview

The fund is designed with a keen focus on tracking the performance of the FTSE Developed All Cap ex US Index, which represents a broad spectrum of stocks from large-, mid-, and small-cap companies based outside of the United States, specifically in Canada, Europe, and the Pacific region. This strategic indexing investment approach aims to provide investors with a comprehensive exposure to the international equities market sans the U.S., thereby offering a diversified investment option. By adhering closely to the market-capitalization-weighted index composed of approximately 3,957 common stocks, the fund seeks to emulate the target index's performance by investing in the stocks contained within the index, maintaining each stock's proportion in accordance with its index weighting. This method underscores the Advisor's commitment to replicating the index as accurately as possible.

Products and Services

• Indexing Investment Approach

  This approach involves the fund employing a strategy to match the performance of the FTSE Developed All Cap ex US Index. It is crafted for investors looking to gain exposure to a diversified portfolio of international stocks, devoid of U.S.-based companies. By mimicking the index composition, it allows for a broad representation across varied sectors and geographies, offering a balanced investment in the developed markets outside of the United States.

• Market-Capitalization-Weighted Index Tracking

  The FTSE Developed All Cap ex US Index serves as a comprehensive benchmark, reflecting the investment outcome of large-, mid-, and small-cap companies based in developed markets excluding the U.S. The fund's adherence to a market-capitalization-weighted index ensures that investments are proportionately allocated according to each company's market value, thereby closely aligning the fund’s performance with that of the index.

• Replication of the Target Index

  In striving to accurately replicate the target index's performance, the Advisor commits nearly all of the fund's assets into the stocks comprising the index. This replication strategy involves holding each stock in virtually the same proportion as its weighting in the index, which is integral to achieving the desired investment outcome that mirrors the target index as closely as possible. This disciplined investment approach underscores the fund's objective to provide a reliable and faithful representation of the index's performance to its investors.