Short-Term Inflation-Protected Securities ETF (VTIP)

Also available as a 

mutual fund.

Indexed to Barclays US 0-5 Year TIPS Index

  Fact sheet (12/31/2013)

Summary of this fund

Vanguard Short-Term Inflation-Protected Securities ETF seeks to track the performance of a benchmark index that measures the investment return of inflation-protected public obligations of the U.S. Treasury with remaining maturities of less than five years.

Investment approach

  • Invests primarily in U.S. Treasury Inflation-Protected Securities with remaining maturities of less than five years.
  • Seeks inflation protection and income consistent with short-term U.S. Treasury Inflation-Protected Securities.
  • Principal and interest adjusted for inflation.

About the benchmark

The Barclays U.S. Treasury Inflation-Protected Securities (TIPS) 0–5 Year Index is a market-capitalization-weighted index that includes all inflation-protected public obligations issued by the U.S. Treasury with remaining maturities of less than five years.

PRICE AND DISTRIBUTIONS

Price and distributions

as of 04/24/2014

Market price

The price at which a security trades in the secondary market. The market price is determined by the midpoint between the bid and asked prices as of the closing time of the New York Stock Exchange (typically 4 p.m., Eastern time) on business days.

Change $/%
$49.58
– $0.01 negative change   – 0.02%
NAV

The market value of a mutual fund's total assets, minus liabilities, divided by the number of shares outstanding. The value of a single share is called its share value or share price.

Change $/%
$49.55
$0.01 positive change   0.02%
SEC yield

A non-money market fund's SEC yield is based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund's hypothetical annualized income, as a percentage of its assets. A security's income, for the purposes of this calculation, is based on the current market yield to maturity (in the case of bonds) or projected dividend yield (for stocks) of the fund's holdings over a trailing 30 day period. This hypothetical income will differ (at times, significantly) from the fund's actual experience; as a result, income distributions from the fund may be higher or lower than implied by the SEC yield.



The SEC yield for a money market fund is calculated by annualizing its daily income distributions for the previous seven days.

– 1.24% E,G

SEC yield

STerm InflatPro Sec ETF

Important information about the Vanguard® Inflation-Protected Securities Fund

The yield quoted is the real yield, or the yield before adjusting for inflation. The actual yield on the Vanguard Inflation-Protected Securities Fund will be a combination of the real yield and an inflation adjustment. A complete estimate of the fund's yield requires that an estimate of future inflation be added to the real yield. Because inflation fluctuates, it cannot be projected into the future precisely enough to be included in the yield quote. The inflation adjustment is based on changes to the Consumer Price Index and can either be positive or negative, based on the change to the CPI. Investors interested in maintaining the purchasing power of their investment should reinvest their dividend distributions.

BASED ON HOLDINGS' YIELD TO MATURITY FOR 30 DAYS AS OF END OF PREVIOUS WEEK.
DOES NOT INCLUDE ANY INCOME ADJUSTMENT RESULTING FROM CHANGE IN INFLATION RATE

KEY FUND FACTS

Key fund facts

Expense ratio
0.10% as of 01/28/2014
Lipper peer average
expense ratio
0.77% as of 12/31/2013
Designation
Inflation Protected Bond
Inception on
10/12/2012
Total net assets

This represents the total net assets for all share classes of Vanguard's U.S. funds that share the same investment strategy, management and holdings, but does not include any collective trusts sharing the same investment mandate.

$8.7 billion as of 03/31/2014
Net assets for
VTIP
 
$1.1 billion as of 03/31/2014
Holdings 
16 as of 03/31/2014
Management style
Index
Benchmark
Barclays US 0-5 Year TIPS Index
Turnover rate 
 13.00%(Fiscal year-end  09/30/2013)

TRADING

Trading

IOV:

Intraday Optimized Value Ticker
Intraday Optimized Value (IOV), also known as the Intraday Indicative Value (IIV), is the calculated per share price of the ETF which is published every 15 seconds based on the last sale price of each of the underlying securities in the portfolio basket, plus any estimated cash amounts associated with the creation unit.

VTIP.IV
Outstanding shares:
22,794,558 as of 03/31/2014
ETF exchange:
NASDAQ Stock Market Exchange Large Cap

STYLEBOX

Stylebox

Bond
Portfolio of short-term inflation-indexed securities.



Expected range
Central tendency

About our styleboxes  

Objective

Vanguard Short-Term Inflation-Protected Securities ETF seeks to track the performance of a benchmark index that measures the investment return of inflation-protected public obligations of the U.S. Treasury with remaining maturities of less than five years.

Investment approach

  • Invests primarily in U.S. Treasury Inflation-Protected Securities with remaining maturities of less than five years.
  • Seeks inflation protection and income consistent with short-term U.S. Treasury Inflation-Protected Securities.
  • Principal and interest adjusted for inflation.

About the benchmark

The Barclays U.S. Treasury Inflation-Protected Securities (TIPS) 0–5 Year Index is a market-capitalization-weighted index that includes all inflation-protected public obligations issued by the U.S. Treasury with remaining maturities of less than five years.

Total returns

as of 03/31/2014

View as:

as of 03/31/2014

View as:
1%
0
-1
-2%
 
 
 
  YTD 1 year 5 year 10 year Since inception

10/12/2012

Market price  0.07% – 1.90% – 0.57%
NAV 
0.18% – 1.88% – 0.61%
Benchmark

Barclays U.S. 0-5 Year Treasury Inflation Protected Securities Index

*
0.18% – 1.78%

* Includes inflation-protected public obligations issued by the U.S. Treasury with remaining maturities of less than five years.

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.


Distribution by credit quality(% of fund) as of 03/31/2014

(% of fund) as of 03/31/2014
  Credit rating  VTIP
U.S. Government 100.0%
Aaa 0.0%
Aa 0.0%
A 0.0%
Baa 0.0%
< Baa 0.0%
0%
100%
Total 100.0%

Fundamentals

Bondas of 03/31/2014 VTIP Benchmark

Barclays U.S. 0-5 Year Treasury Inflation Protected Securities Index

Number of bonds 16 15
Yield to maturity* 0.84% 0.66%
Short-term reserves 0.29% N/A
Average duration** 2.4 (years) 2.4 (years)
Average maturity 2.4 (years) 2.4 (years)
Average coupon 1.11% 1.16%

This figure is an estimated yield to maturity (YTM) for the fund. It is calculated by adding the trailing 12-month inflation adjustment to the "real" (i.e., before inflation) YTM of the fund. Adding the 12-month inflation adjustment allows the fund's yield to be more directly comparable with those of other bond funds.

** This duration estimates the percentage change in the price of the fund for a given change in nominal interest rates on conventional Treasury securities. Actual inflation-protected securities (TIPS) price movements could be significantly different than those implied by this estimate. The relationship of TIPS and conventional bonds varies and is difficult to predict with accuracy for inflation-protected funds.


Risk and volatility as of 03/31/2014

as of 03/31/2014
  VTIP Benchmark

Barclays U.S. 0-5 Year Treasury Inflation Protected Securities Index

R-squared N/A
Beta N/A
Alpha N/A
Standard deviation 2.07%
Sharpe ratio 0.48

Risk and volatility are based on the share class with the earliest inception date.

Risk measures are calculated from trailing 36-month fund returns relative to the associated benchmarks.

Risk and volatility information is not available for a fund less than 3 years old.

An investment in the fund could lose money over short or even long periods. You should expect the fund’s quarterly income distributions to fluctuate. Although Short-Term Inflation-Protected Securities ETF is listed for trading on the Nasdaq, it is possible that an active trading market may not be maintained. Trading of Short-Term Inflation-Protected Securities ETF on the Nasdaq may be halted if Nasdaq officials deem such action appropriate, if Short-Term Inflation-Protected Securities ETF is delisted from the Nasdaq, or if the activation of marketwide “circuit breakers” halts stock trading generally. The fund’s performance could be hurt by:

  • Income fluctuations: The fund’s quarterly income distributions are likely to fluctuate considerably more than the income distributions of a typical bond fund. Income fluctuations associated with changes in interest rates are expected to be low; however, income fluctuations associated with changes in inflation are expected to be high. Overall, investors can expect income fluctuations to be high for the fund.
  • Interest rate risk: The chance that the value of a bond will fluctuate due to a change in the level of interest rates. Although inflation-indexed bonds seek to provide inflation protection, their prices may decline when interest rates rise and vice versa. Because the fund’s dollar-weighted average maturity is expected to be 5 years or less, interest rate risk is expected to be low for the fund.




Vanguard ETF Shares can be bought and sold only through a broker (who may charge a commission) and cannot be redeemed with the issuing fund. The market price of Vanguard ETF Shares may be more or less than net asset value. Investments are subject to market risk. Go to the performance page to read more about risk and volatility.

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