Vanguard Long-Term Bond ETF (BLV)
Vanguard Long-Term Bond ETF seeks to track the performance of a market-weighted bond index with a long-term dollar-weighted average maturity.
The fund employs a “passive management”—or indexing—strategy designed to track the performance of the Barclays Capital U.S.Long Government/Credit Bond Index. This index includes all medium and larger issues of U.S. government, investment-grade corporate, and investment-grade international dollar-denominated bonds that have maturities of greater than 10 years and are publicly issued. The fund invests by sampling the index, meaning that it holds a range of securities that, in the aggregate, approximates the full index in terms of key risk factors and other characteristics. All of the fund’s investments will be selected through the sampling process, and at least 80% of the fund’s assets will be invested in bonds held in the index. The fund maintains a dollar-weighted average maturity consistent with that of the index, which currently ranges between 15 and 30 years.
The fund will invest at least 80% of its assets in bonds held in the target index. Up to 20% of the fund’s assets may be used to purchase nonpublic, investment-grade securities, generally referred to as 144A securities, as well as smaller public issues or medium-term notes not included in the index because of the small size of the issue. The vast majority of these securities will have characteristics and risks similar to those in the target index. Subject to the same 20% limit, the fund may also purchase other securities that are outside of its target index. The fund may also purchase money market instruments and certain derivatives in order to manage cash flow into and out of the fund, reduce the fund’s transaction costs, or add value when these instruments are favorably priced.
|'||Long-Term Bond ETF||Barclays US Long Govt/Credit Index|
|Number of Bonds||834||1135|
|Yield to Maturity||5.10%||5.10%|
|Average Maturity||22.1 years||22.4|
|Average Duration||12.3 years||12.2 years|
|Fund Total Net Assets||$2.9 billion||—|
|Share Class Total Net Assets||$190.9 million||—|
Fixed-Income Characteristics as of 09/30/2009