Vanguard Short-Term Bond Index Fund Investor Shares (VBISX)

Vanguard Short-Term Bond Index Fund Investor Shares is a U.S. mutual fund that tracks a market‑value‑weighted benchmark of investment‑grade bonds with maturities of one to five years. Its primary purpose is to provide broad, low‑cost exposure to short‑term U.S. government and high‑quality corporate debt, emphasizing stability and interest‑rate discipline over credit risk. The fund mirrors the Bloomberg U.S. 1–5 Year Government/Credit Index, using sampling to hold a diversified mix of Treasuries, government‑related securities, and investment‑grade corporates while excluding securitized debt. This design anchors the portfolio in high‑quality issuers and typically results in limited interest‑rate sensitivity relative to intermediate‑term strategies. The fund’s role in the market is as a core short‑duration building block for fixed income allocation, offering efficient liquidity management, income generation, and ballast during periods of widening credit spreads. With a long operating history since 1994 and a low expense structure, it is positioned as a straightforward tool for investors seeking systematic short‑term bond exposure aligned with a well‑known benchmark.