VTBNX

About VTBNX

Vanguard Total Bond Market II Index Fund Institutional Shares is an open-end mutual fund designed to track the performance of a broad, market-weighted index representing the U.S. investment-grade bond market. Its primary function is to provide institutional investors with broad exposure to key segments of the domestic fixed-income market, including government, corporate, mortgage-backed, and asset-backed securities across various maturities—short, intermediate, and long. Notable for its rigorous indexing strategy and expansive diversification, the fund holds a large, representative sample of the major bond types, with a significant allocation to U.S. Treasury securities, reflecting its focus on high credit quality and moderate interest rate sensitivity. With total assets exceeding $300 billion and an exceptionally low expense ratio, the fund caters to institutions seeking efficient, low-cost access to the fixed income market. As a core bond holding, it plays a pivotal role in portfolio construction by offering investors a tool for income generation and risk mitigation, helping to anchor investment portfolios against equity market volatility.