Question

vanguard intermediate - term treasury fund
bond fund | investor shares
fund facts
risk level low 1 2 3 4 5 high
total net assets $691mm
expense ratio as of 05/31/24 0.20%
ticker symbol vfitx
turnover rate 317.0%
inception date 10/28/91
fund number 0035
investment objective
vanguard intermediate - term treasury fund seeks to provide a moderate and sustainable level of current income.
investment strategy
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.
benchmark
bloomberg u.s 5 - 10 yr treasury index
growth of a $10,000 investment: january 31, 2014 - december 31, 2023
fund as of 12/31/23 $11,646
benchmark as of 12/31/23 $11,325
annual returns
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
fund 4.32 1.50 1.19 1.57 1.00 6.29 8.21 - 2.79 - 10.43 4.07
benchmark 6.42 1.84 1.18 2.17 1.22 7.48 9.09 - 2.97 - 12.58 4.11
total returns
periods ended september 30, 2024
quarter year to date one year three years five years ten years
fund 4.80% 4.51% 9.90% - 1.08% 0.48% 1.64%
benchmark 5.36% 4.29% 10.52% - 1.80% - 0.06% 1.64%
the performance data shown represent past performance, which is not a guarantee of future results. investment returns and principal value will fluctuate, so investors shares, when sold, may be worth more or less than their original cost. current performance may be lower or higher than the performance data quoted. for performance data current to the most recent month - end, visit our website at vanguard.com/performance. the performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.
figures for periods of less than one year are cumulative returns. all other figures represent average annual returns. performance figures include the reinvestment of all dividends and any capital gains distributions. all returns are net of expenses.
distribution by issuer - bonds
treasury/agency 92.5%
commercial mortgage - backed 3.5%
other 5.5%
government mortgage - backed - 1.5%

1. what does this fund primarily invest in?

a. u.s. treasury securities
b. an index of large - capitalization stocks
c. corporate investment - grade bonds
d. an equal mix of stocks and bonds

Explanation:

The investment strategy section states that 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.

Answer:

a. U.S. Treasury securities