Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares

This fund seeks to track an index that measures the performance of inflation-protected public obligations of the U.S. Treasury that have a remaining maturity of less than five years. The fund is designed to generate returns more closely correlated with realized inflation over the near term, and to offer investors the potential for less volatility of returns relative to a longer-duration TIPS fund. Given its shorter duration, the fund can be expected to have less real interest rate risk, but also lower total returns relative to a longer-duration TIPS fund. The fund invests in bonds that are backed by the full faith and credit of the federal government and whose principal is adjusted semiannually based on inflation. The fund’s income can fluctuate in response to both changes in interest rates and changes in the rate of inflation. The fund can play a valuable role in already diversified fixed income portfolio by helping to protect investors from inflationary surprises or ”unexpected inflation.”