Fund info

Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares is a U.S. mutual fund that tracks a market‑value‑weighted index of Treasury Inflation‑Protected Securities with less than five years to maturity. Its primary purpose is to provide exposure to inflation‑linked U.S. government debt while limiting interest‑rate sensitivity through a short effective duration profile. The fund invests substantially in the constituents of the Bloomberg U.S. Treasury Inflation‑Protected Securities 0–5 Year Index, which excludes amounts held by the Federal Reserve to reflect publicly available float and carries negligible credit risk given U.S. Treasury backing. By linking principal to the Consumer Price Index, the portfolio’s coupons and principal adjust with realized inflation, offering a targeted hedge against unexpected price increases over short horizons. The strategy is positioned within the short‑term inflation‑protected bond category and is noted for low costs and broad, rules‑based coverage of the TIPS market segment. It plays a role in portfolio construction as a defensive, inflation‑aware core bond holding, complementing nominal Treasuries and reducing real purchasing‑power volatility in diversified fixed‑income allocations.