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Vanguard Total Bond Market Index Fund Annual Report December 31

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Vanguard Total Bond Market Index Fund Annual Report December 31 Annual Report]%FDFNCFS 7BOHVBSE5PUBM#POE.BSLFU*OEFY'VOE Contents Your Fund’s Performance at a Glance. 1 About Your Fund’s Expenses. 2 Performance Summary. .4 Financial Statements. 8 Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus. :PVS'VOET1FSGPSNBODFBUB(MBODF t 'PSUIFNPOUITFOEFE%FDFNCFS SFUVSOTGPS7BOHVBSE5PUBM#POE .BSLFU*OEFY'VOESBOHFEGSPNGPS*OWFTUPS4IBSFTUPGPS*OTUJUVUJPOBM 4FMFDU4IBSFT5IJTQFSGPSNBODFXBTJOMJOFXJUIUIFSFUVSOPGUIFCFODINBSL JOEFYBGUFSUBLJOHUIFDPTUTPGSVOOJOHUIFGVOEJOUPBDDPVOU t 5IFFNFSHFODFPG$07*%JOFBSMZUVSOFEJOUPBHMPCBMIFBMUIDSJTJT BOE BHHSFTTJWFBUUFNQUTUPDPOUBJOJUSFTVMUFEJOBTIBSQEPXOUVSOJOFDPOPNJDBDUJWJUZ 6OFNQMPZNFOUTQJLFE BOETFDUPSTXIFSFTPDJBMEJTUBODJOHJTOUQPTTJCMFXFSFIJUIBSE 1PMJDZNBLFSTXFSFRVJDLUPQSPWJEFSPCVTUGJTDBMBOENPOFUBSZTUJNVMVTUPCMVOUUIF QBOEFNJDTFDPOPNJDJNQBDU.BOZDFOUSBMCBOLTTMBTIFETIPSUUFSNJOUFSFTUSBUFT BOEFYQBOEFEPSFYUFOEFEBTTFUQVSDIBTFQSPHSBNT t 8JUIZJFMETGBMMJOHBOEQSJDFTSJTJOH 645SFBTVSJFTQPTUFEBSFUVSOPG .PSUHBHFCBDLFETFDVSJUJFTSFUVSOFEMFTTUIBOUIBU BTMPXNPSUHBHFSBUFTMFEUPQMFOUZ PGTVQQMZCVUDPSQPSBUFCPOETGBSFEFWFOCFUUFSUIBO5SFBTVSJFT SFUVSOJOH t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t #BTFEPOBDUVBMGVOESFUVSO5IJTTFDUJPOIFMQTZPVUPFTUJNBUFUIFBDUVBMFYQFOTFTUIBUZPV QBJEPWFSUIFQFSJPE5IFw&OEJOH"DDPVOU7BMVFiTIPXOJTEFSJWFEGSPNUIFGVOEATBDUVBMSFUVSO BOEUIFUIJSEDPMVNOTIPXTUIFEPMMBSBNPVOUUIBUXPVMEIBWFCFFOQBJECZBOJOWFTUPSXIPTUBSUFE XJUI JOUIFGVOE:PVNBZVTFUIFJOGPSNBUJPOIFSF UPHFUIFSXJUIUIFBNPVOUZPVJOWFTUFE UPFTUJNBUFUIFFYQFOTFTUIBUZPVQBJEPWFSUIFQFSJPE 5PEPTP TJNQMZEJWJEFZPVSBDDPVOUWBMVFCZ GPSFYBNQMF BO BDDPVOUWBMVFEJWJEFE CZ UIFONVMUJQMZUIFSFTVMUCZUIFOVNCFSHJWFOGPSZPVSGVOEVOEFSUIFIFBEJOH w&YQFOTFT1BJE%VSJOH1FSJPEi t #BTFEPOIZQPUIFUJDBMZFBSMZSFUVSO5IJTTFDUJPOJTJOUFOEFEUPIFMQZPVDPNQBSFZPVS GVOEATDPTUTXJUIUIPTFPGPUIFSNVUVBMGVOET*UBTTVNFTUIBUUIFGVOEIBEBZFBSMZSFUVSOPG CFGPSFFYQFOTFT CVUUIBUUIFFYQFOTFSBUJPJTVODIBOHFE*OUIJTDBTFCFDBVTFUIFSFUVSOVTFEJT OPUUIFGVOETBDUVBMSFUVSOUIFSFTVMUTEPOPUBQQMZUPZPVSJOWFTUNFOU5IFFYBNQMFJTVTFGVMJO NBLJOHDPNQBSJTPOTCFDBVTFUIF4FDVSJUJFTBOE&YDIBOHF$PNNJTTJPOSFRVJSFTBMMNVUVBMGVOETUP DBMDVMBUFFYQFOTFTCBTFEPOBSFUVSO:PVDBOBTTFTTZPVSGVOETDPTUTCZDPNQBSJOHUIJT IZQPUIFUJDBMFYBNQMFXJUIUIFIZQPUIFUJDBMFYBNQMFTUIBUBQQFBSJOTIBSFIPMEFSSFQPSUTPGPUIFS GVOET Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a “sales load.”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hares "ENJSBM4IBSFT *OTUJUVUJPOBM4IBSFT *OTUJUVUJPOBM1MVT4IBSFT *OTUJUVUJPOBM4FMFDU4IBSFT #BTFEPO)ZQPUIFUJDBM:FBSMZ3FUVSO *OWFTUPS4IBSFT &5'4IBSFT "ENJSBM4IBSFT *OTUJUVUJPOBM4IBSFT *OTUJUVUJPOBM1MVT4IBSFT *OTUJUVUJPOBM4FMFDU4IBSFT The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios for that period are 0.15% for Investor Shares, 0.035% for ETF Shares, 0.05% for Admiral Shares, 0.035% for Institutional Shares, 0.03% for Institutional Plus Shares, and 0.01% for Institutional Select Shares. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period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umulative Performance: December 31, 2010, Through December 31, 2020 Initial Investment of $10,000 "WFSBHF"OOVBM5PUBM3FUVSOT 1FSJPET&OEFE %FDFNCFS Final Value One Five Ten of a $10,000 Year Years Years Investment Total Bond Market Index Fund Investor Shares 7.61% 4.36% 3.69% $14,361 Bloomberg Barclays U.S. Aggregate • • • • • • • • Float Adjusted Index 7.75 4.53 3.89 14,644 Final Value One Five Ten of a $10,000 Year Years Years Investment Total Bond Market Index Fund ETF Shares Net Asset Value 7.71% 4.46% 3.79% $14,510 Total Bond Market Index Fund ETF Shares Market Price 7.69 4.45 3.80 14,521 Bloomberg Barclays U.S. Aggregate Float Adjusted Index 7.75 4.53 3.89 14,644 See Financial Highlights for dividend and capital gains information. 5PUBM#POE.BSLFU*OEFY'VOE "WFSBHF"OOVBM5PUBM3FUVSOT 1FSJPET&OEFE %FDFNCFS Final Value One Five Ten of a $10,000 Year Years Years Investment Total Bond Market Index Fund Admiral Shares 7.72% 4.46% 3.80% $14,514 Bloomberg Barclays U.S. Aggregate Float Adjusted Index 7.75 4.53 3.89 14,644 Final Value One Five Ten of a $5,000,000 Year Years Years Investment Total Bond Market Index Fund Institutional Shares 7.74% 4.47% 3.81% $7,268,208 Bloomberg Barclays U.S. Aggregate Float Adjusted Index 7.75 4.53 3.89 7,321,867 Final Value One Five Ten of a $100,000,000 Year Years Years Investment Total Bond Market Index Fund Institutional Plus Shares 7.74% 4.48% 3.82% $145,531,321 Bloomberg Barclays U.S. Aggregate Float Adjusted Index 7.75 4.53 3.89 146,437,330 Final Value Since of a One Inception $3,000,000,000 Year (6/24/2016) Investment Total Bond Market Index Fund Institutional Select Shares 7.76% 3.88% $3,562,839,000 Bloomberg Barclays U.S. Aggregate Float Adjusted Index 7.75 3.92 3,568,946,700 "Since Inception" performance is calculated from the Institutional Select Shares’ inception date for both the fund and its comparative standard(s). 5PUBM#POE.BSLFU*OEFY'VOE $VNVMBUJWF3FUVSOTPG&5'4IBSFT %FDFNCFS 5ISPVHI%FDFNCFS One Five Ten Year Years Years Total Bond Market Index Fund ETF Shares Market Price 7.69% 24.33% 45.21% Total Bond Market Index Fund ETF Shares Net Asset Value 7.71 24.40 45.10 Bloomberg Barclays U.S. Aggregate Float Adjusted Index 7.75 24.81 46.44 For the ETF Shares, the market price is determined by the midpoint of the bid-offer spread as of the closing time of the New York Stock Exchange (generally 4 p.m., Eastern time). The net asset value is also determined as of the NYSE closing time. For more information about how the ETF Shares' market prices have compared with their net asset value, visit vanguard.com, select your ETF, and then select the Price and Performance tab. The ETF premium/discount analysis there shows the percentages of days on which the ETF Shares' market price was above or below the NAV. 5PUBM#POE.BSLFU*OEFY'VOE 'VOE"MMPDBUJPO "TPG%FDFNCFS "TTFU#BDLFE$PNNFSDJBM .PSUHBHF#BDLFE4FDVSJUJFT $PSQPSBUF#POET 4PWFSFJHO#POET 5BYBCMF.VOJDJQBM#POET 64(PWFSONFOUBOE"HFODZ0CMJHBUJPOT The table reflects the fund's investments, except for short-term investments. The agency and mortgage-backed securities may include issues from government-sponsored enterprises; such issues are generally not backed by the full faith and credit of the U.S. government. The fund may invest in derivatives (such as futures and swap contracts) for various reasons, including, but not limited
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