VANGUARD SHORT DURATION BOND ETF

This actively managed fund seeks to provide broadly diversified exposure primarily to short-term U.S. investment-grade bond market, including some exposure to structured products such as asset-backed securities. The fund will have the flexibility to invest in below-investment-grade debt and emerging markets to seek additional yield. Using a disciplined, risk-controlled approach, the fund seeks to outperform its benchmark through security selection, sector allocation, and duration decisions. Like other bond funds, the fund is subject to interest rate risk; increases in interest rates may cause the price of the bonds in the portfolio to decrease, reducing the fund’s net asset value. This fund is expected to have a moderate allocation to lower-credit-quality securities, so it is also subject to credit risk; negative perceptions about an issuer’s ability to make its interest or principal payments in a timely manner may cause the price of that bond to decrease.