VANGUARD SHORT-TERM FEDERAL FUND

VANGUARD FIXED INCOME SECURITIES FUNDS · 2 share classes

Actively managed U.S. bond fund
One fund, 2 share classes:VSGBXVSGDX
$4.48B NAV
463 positions · as of 2026-04-30 · filed 2026-06-26

Fund classification

Classified from what the fund holds · as of 2026 Q2

VANGUARD SHORT-TERM FEDERAL FUND is an actively managed U.S. bond fund.

Asset class
Bonds
Region
United States
Management
Actively managed
Fund type
Open-end fund
Credit quality
Investment grade
Rate sensitivity
Short duration

Fund profile

As filed in the prospectus · 2026 Q2

Vanguard Short-Term Federal Fund (the Fund) seeks to provide current income while maintaining limited price volatility.

Strategy · summarised

The fund actively manages a portfolio of U.S. government and agency bonds, maintaining a dollar-weighted average maturity of 1 to 4 years to generate current income with limited price volatility. The fund may use derivatives and short positions in mortgage-backed securities to implement its strategy.

Expenses
0.10% 0.20%across 2 share classes
Share classExpense ratio
VSGBX0.20%
VSGDX0.10%

Portfolio turnover 398.00% · as of 2026 Q2

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q2

99.43%
of net assets
Securitized55.94%
Bonds39.25%
Cash & short-term4.20%
Derivatives0.04%

Derivatives are shown at market value, not notional exposure.

Latest quarter

What changed since the fund's previous filing

2026Q2 vs 2026Q1: 171 new270 exited

Largest new: United States Treasury Note/Bond ×7, GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

Largest exited: Federal Home Loan Banks, Fannie Mae or Freddie Mac ×3, United States Treasury Note/Bond ×2, Freddie Mac Multifamily Structured Pass Through Certificates ×2

Return profile

Chart:

Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026

Share class1-year3-year5-yearVolWorst fall
+3.69%+13.34%+8.39%1.58%-0.94%
+3.79%+13.68%+8.93%1.58%-0.93%

These classes hold the same portfolio, so the 0.54pp spread over 5 years is the cost difference between them — roughly 0.11pp a year — not a difference in what they own.

Cumulative return· May 2023 – Apr 2026

Debt profile

What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-04-30

Avg coupon
3.08%
Avg maturity
7.16 yr
Coupon type

Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.

20%
floating
Fixed rate66.1%
Floating rate20.1%
Zero-coupon or unclassified13.9%
Maturity ladder

Share of the fund's debt value in each maturity band, shortest first.

<1y10y+
<1y9.4%
1-3y41.0%
3-5y23.8%
5-10y6.3%
10y+19.5%
Flagged holdings
Defaulted: none reported
In arrears: none reported
Paid in kind: none reported

Based on what filers reported; a filer that never reported a flag also reads as none.

Risk profile

Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2

Most of this fund’s sensitivity is to interest rates, with credit spreads carrying about half as much.

Interest-rate duration
2.31 yr
approx. move per 100bp
Credit-spread duration
1.53 yr
approx. move per 100bp
If rates and spreads both rise 100bp

Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.

≈ -4.0%
of value
Interest rates60%
Credit spreads40%

Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.

Credit risk by quality

Share of the fund's spread duration carried by each credit tier.

+1.53
yrs total
Investment grade+1.53 yr
Where the risk sits on the curve

Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.

Interest rate2.31 yr total
1 yr30 yr
1 yr1.00 yr43%
5 yr1.13 yr49%
10 yr0.17 yr7%
30 yr0.02 yr1%

3 mo is NEGATIVE (-0.00 yr) — a deliberate hedge at that point on the curve, so it is not part of the band above.

Credit spread1.53 yr total
3 mo30 yr
3 mo0.04 yr2%
1 yr0.56 yr37%
5 yr0.73 yr48%
10 yr0.17 yr11%
30 yr0.03 yr2%

The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.

Show the numbers
TenorRate yrsIG yrsHY yrsIG $/bpHY $/bp
3 mo-0.00+0.04+0.00$16.1k$0
1 yr+1.00+0.56+0.00$252.9k$0
5 yr+1.13+0.73+0.00$326.8k$0
10 yr+0.17+0.17+0.00$77.5k$0
30 yr+0.02+0.03+0.00$12.6k$0

Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.

Holdings

By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page

Issuer%NAVValue
Resolution Funding Corp Principal Strip0.00% · due 2030-01-158.51%$381.04M
Resolution Funding Corp Principal Strip0.00% · due 2030-04-154.41%$197.35M
Vanguard Cmt Funds-Vanguard Market Liquidity Fund4.20%$188.24M
United States Treasury Note/Bond4.63% · due 2029-04-303.76%$168.27M
Fannie Mae-Aces3.00% floating · due 2027-07-253.42%$153.11M
Fannie Mae or Freddie Mac5.00% · due 2026-05-132.44%$109.20M
United States Treasury Note/Bond4.13% · due 2029-03-312.36%$105.59M
United States Treasury Note/Bond4.50% · due 2027-05-152.07%$92.65M
United States Treasury Note/Bond3.50% · due 2028-10-151.99%$89.15M
United States Treasury Note/Bond1.25% · due 2028-03-311.70%$76.13M
Showing 10 of 463Sign in to see more

Top 10 positions are 34.84% of net assets, top 25 54.00%, across 23 issuers.

See more of this fund's book

More positions with filed share counts, and the quarter-over-quarter change list rather than the largest few — free with an account, no card required.

Sign in free