Vanguard Inflation-Protected Securities Fund Admiral Shares

Frequently Asked Questions About VAIPX

What does VAIPX invest in?

This fund's core objective is to safeguard investors against the erosive effects of inflation by primarily allocating capital to securities structured to deliver a "real" return. It predominantly invests in inflation-indexed bonds, which are fully backed by the U.S. federal government and whose principal value is adjusted in response to inflation. The fund inherently carries moderate to high interest rate risk, meaning that fluctuations in interest rates, both upward and downward, can impact its performance by leading to reduced bond prices or a future decrease in income. Furthermore, its income stream can exhibit greater variability compared to traditional bonds, as its payments are directly linked to changes in inflation. Long-term investors may find this fund a compelling addition to an already diversified fixed income portfolio.

What is the expense ratio of VAIPX?

Vanguard Inflation-Protected Securities Fund Admiral Shares (VAIPX) charges an expense ratio of 0.10%. This is the annual fee deducted from fund assets to cover management and operations.

What is VAIPX's dividend yield?

VAIPX's trailing-twelve-month yield is 5.21%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VAIPX?

Effective duration measures VAIPX's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VAIPX's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of VAIPX?

VAIPX's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of VAIPX?

Yield to maturity (YTM) is the total return you'd earn from VAIPX if every bond in the portfolio is held to maturity at the current price. VAIPX's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.