Vanguard Short-Term Inflation-Protected Securities Index Fund Institutional Shares (VTSPX)

Vanguard Short-Term Inflation-Protected Securities Index Fund Institutional Shares is an index mutual fund that tracks a market-capitalization-weighted benchmark of U.S. Treasury Inflation-Protected Securities with less than five years to maturity. Its primary purpose is to provide exposure to short-duration TIPS, aiming to reflect changes in consumer prices while limiting interest rate sensitivity relative to longer-maturity inflation-linked bonds. The portfolio holds inflation-protected public obligations issued by the U.S. Treasury, seeking to replicate the Bloomberg U.S. Treasury Inflation-Protected Securities 0–5 Year Index by owning securities in proportions similar to the index. With an institutional share class expense ratio of 0.04% and a multi-billion-dollar asset base, the fund emphasizes low-cost, scalable access to government-backed inflation protection. Income distributions can fluctuate due to inflation adjustments, and while duration is constrained by the short-term focus, the fund remains subject to interest rate and real yield risk inherent to TIPS. Established in 2012, it serves institutions and large allocators seeking a liquid, transparent vehicle for short-term inflation hedging and ballast within diversified fixed income allocations.