Vanguard Intermediate-Term Treasury Fund  
 
Summary Prospectus  
 
 
 
February 7, 2014  
 
 
 
Investor Shares for Participants  
 
Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX)  
 
 
 
 
The Fund’s statutory Prospectus and Statement of Additional Information dated  
February 7, 2014, as may be amended or supplemented, are incorporated into  
and made part of this Summary Prospectus by reference.  
Before you invest, you may want to review the Fund’s Prospectus, which  
contains more information about the Fund and its risks. You can find  
the Fund’s Prospectus and other information about the Fund online at  
www.vanguard.com/prospectus . You can also obtain this information at no  
cost by calling 800-523-1188 or by sending an e-mail request to  
online@vanguard.com.  
 
 
 
 
The Securities and Exchange Commission (SEC) has not approved or disapproved these securities or  
passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.  

 

 

Investment Objective

The Fund seeks to provide a moderate and sustainable level of current income.

Fees and Expenses

The following table describes the fees and expenses you may pay if you buy and hold Investor Shares of the Fund.

Shareholder Fees    
(Fees paid directly from your investment)    
 
Sales Charge (Load) Imposed on Purchases   None  
Purchase Fee   None  
Sales Charge (Load) Imposed on Reinvested Dividends   None  
Redemption Fee   None  
 
Annual Fund Operating Expenses    
(Expenses that you pay each year as a percentage of the value of your investment)    
 
Management Fees   0.16%  
12b-1 Distribution Fee   None  
Other Expenses   0.04%  
Total Annual Fund Operating Expenses   0.20%  

 

Example

The following example is intended to help you compare the cost of investing in the Fund’s Investor Shares with the cost of investing in other mutual funds. It illustrates the hypothetical expenses that you would incur over various periods if you invest $10,000 in the Fund’s shares. This example assumes that the Shares provide a return of 5% a year and that total annual fund operating expenses remain as stated in the preceding table. The results apply whether or not you redeem your investment at the end of the given period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

1 Year   3 Years   5 Years   10 Years  
$20   $64   $113   $255  

 

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Portfolio Turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in more taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the previous expense example, reduce the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 117%.

Primary Investment Strategies

The Fund invests at least 80% of its assets in U.S. Treasury securities, which include bills, bonds, and notes issued by the U.S. Treasury. The Fund is expected to maintain a dollar-weighted average maturity of 5 to 10 years.

Primary Risks

An investment in the Fund could lose money over short or even long periods. You should expect the Fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall bond market. The Fund is subject to the following risks, which could affect the Fund’s performance:

• Income risk , which is the chance that the Fund’s income will decline because of falling interest rates. Income risk is generally moderate for intermediate-term bond funds, so investors should expect the Fund’s monthly income to fluctuate accordingly.

• Interest rate risk , which is the chance that bond prices will decline because of rising interest rates. Interest rate risk should be moderate for the Fund because it invests primarily in short- and intermediate-term bonds, whose prices are less sensitive to interest rate changes than are the prices of long-term bonds.

• Manager risk , which is the chance that poor security selection will cause the Fund to underperform relevant benchmarks or other funds with a similar investment objective.

An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

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Annual Total Returns

The following bar chart and table are intended to help you understand the risks of investing in the Fund. The bar chart shows how the performance of the Fund‘s Investor Shares has varied from one calendar year to another over the periods shown. The table shows how the average annual total returns of the Investor Shares compare with those of a relevant market index, which has investment characteristics similar to those of the Fund. Keep in mind that the Fund’s past performance does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447.

Annual Total Returns — Vanguard Intermediate-Term Treasury Fund Investor Shares


During the periods shown in the bar chart, the highest return for a calendar quarter was 7.97% (quarter ended December 31, 2008), and the lowest return for a quarter was –3.22% (quarter ended June 30, 2004).

Average Annual Total Returns for Periods Ended December 31, 2013

  1 Year   5 Years   10 Years  
Vanguard Intermediate-Term Treasury Fund Investor Shares   –3.09%   2.89%   4.60%  
Barclays U.S. 5-10 Year Treasury Bond Index        
(reflects no deduction for fees or expenses)   –4.68%   2.97%   4.99%  

 

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Investment Advisor

The Vanguard Group, Inc. (Vanguard)

Portfolio Manager

David R. Glocke, Principal of Vanguard. He has managed the Fund since 2001.

Tax Information

The Fund’s distributions will be reinvested in additional Fund shares and accumulate on a tax-deferred basis if you are investing through an employer-sponsored retirement or savings plan. You will not owe taxes on these distributions until you begin withdrawals from the plan. You should consult your plan administrator, your plan’s Summary Plan Description, or your tax advisor about the tax consequences of plan withdrawals.

Payments to Financial Intermediaries

The Fund and its investment advisor do not pay financial intermediaries for sales of Fund shares.

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Vanguard Intermediate-Term Treasury Fund Investor Shares—Fund Number 35

© 2014 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.

SPI 035 022014

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