Vanguard Intermediate-Term Treasury Fund (VGIT)

Overview

The fund described adopts a strategic approach to investing by attempting to mimic the performance of the Bloomberg U.S. Treasury 3-10 Year Index. This careful selection criteria ensures that investments are primarily in U.S. Treasury securities that do not account for inflation-protected bonds, floating rate notes, or other specialized securities, focusing instead on those with maturity periods ranging from three to ten years. A crucial aspect of the fund’s strategy lies in its commitment to invest at least 80% of its assets in the bonds that are included in the previously mentioned index, providing a targeted and disciplined investment philosophy.

Products and Services

• Bloomberg U.S. Treasury 3-10 Year Index Tracking

  This product is designed for investors looking to closely replicate the performance of the Bloomberg U.S. Treasury 3-10 Year Index. This index represents a specific segment of the U.S. Treasury market, focusing on securities with maturities between three to ten years. It excludes various types of bonds such as inflation-protected and floating rate securities, targeting a specific maturity band for precise investment outcomes.

• U.S. Treasury Bond Investments

  At the core of the fund’s strategy is the investment in U.S. Treasury bonds, specifically those that fall within the maturity range of 3-10 years as outlined by the guiding index. These bonds are favored for their stability and are backed by the full faith and credit of the U.S. government, making them a cornerstone for investors seeking a balance of security and returns within the specified maturity spectrum.