VTIP

📎 Investment Objective

The Vanguard Short-Term Inflation-Protected Securities Index Fund seeks to track the performance of a benchmark index that measures the investment return of inflation-protected public obligations of the U.S. Treasury with remaining maturities of less than 5 years.

✨ Key Features

• Provides exposure to short-term U.S. Treasury Inflation-Protected Securities (TIPS)
• Seeks to track the performance of the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index
• Utilizes a low-cost indexing approach to minimize expenses
• Suitable for investors seeking protection against inflation in the short-term

⚠️ Primary Risks

• Interest rate risk: The value of TIPS may fluctuate due to changes in interest rates
• Inflation risk: If the rate of inflation is lower than expected, the fund's returns may be negatively impacted
• Credit risk: The fund is subject to the risk that a bond issuer will fail to pay interest or principal in a timely manner
• Liquidity risk: The fund may have difficulty selling certain securities at an advantageous time or price

👤 Best For

The Vanguard Short-Term Inflation-Protected Securities Index Fund is best suited for investors seeking short-term protection against inflation, who have a low to moderate risk tolerance, and are looking for a cost-effective way to gain exposure to U.S. Treasury Inflation-Protected Securities.