Vanguard Short Term Inflation Protected Securities Index Fund tax distributions

The Vanguard Short-Term Inflation Protected Securities Index Fund is usually recommended for placement in a tax-deferred account, although for some low tax bracket taxpayers living in states with a high tax rate, the fund may be suitable for taxable accounts. The fund is suggested for investor that employ a liability driven investment (LDI) strategy that duration matches real assets to targeted real retirement income, using in a balanced portfolios that include treasury inflation protected bonds. The table below summarizes the fund's relation to a number of tax factors.

The following tables provide long term data on the fund's history of both dividend and capital gains distributions.

Additional tables provide a database of the fund's accounting figures: the annual level of realized and distributed gains; its level of unrealized gains and loss carryforwards; as well as the annual in-kind redemption gains the fund has realized. These figures highlight the level of a fund's tax liabilities.

Because both manager turnover of securities inside the portfolio and investor turnover of fund shares can affect the level of gains realization, an additional table provides historical turnover ratios.

Distributions
The first table provides the fund's historical dividend and capital gains distributions (expressed as yields) along with a breakdown of the component parts of the distribution (treasury interest, short-term gains, long-term gains, and return of capital), which are subject to differing tax rates.