Vanguard treasury bond index fund tracking error

The following tables provide tracking error data for Vanguard treasury bond index funds. Tracking error is the ultimate measure of judging an index fund manager’s performance. Vanguard offers four treasury bond index funds, three nominal treasury bond funds, covering short-term, intermediate-term, and long-term treasury bonds, and one short-term inflation indexed bond fund. The nominal bonds funds were denominated government bond funds from inception through 2017; the funds changed investment policy to strictly hold treasury securities from 2017 to the current date.

As treasury bond funds, the funds offer two fundamental features that are relevant to many investors.

  • The funds possess the “full faith and credit” guarantee of the US Treasury and are thus possess very high credit quality.
  • Treasury interest is not taxable in states imposing a state income tax.

Short term treasury bond

Index changes:

  • Bloomberg Barclays U.S. 1–3 Year Government Float Adjusted Index through December 11, 2017.
  • Bloomberg Barclays U.S. Treasury 1–3 Year Bond Index thereafter.

Short term inflation-protected treasury bond

Intermediate term treasury bond

Index changes:

  • Bloomberg Barclays U.S. 3–10 Year Government Float Adjusted Index through December 11, 2017.
  • Bloomberg Barclays U.S. Treasury 3–10 Year Bond Index thereafter.

Long term treasury bond

Index changes:

  • Bloomberg Barclays U.S. Long Government Float Adjusted Index through December 11, 2017.
  • Bloomberg Barclays U.S. Long Treasury Bond Index thereafter.
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