About Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares (VTIP)

The Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares (VTIP) is an exchange-traded fund that seeks to track the performance of the Bloomberg Barclays U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. TIPS are bonds issued by the U.S. Treasury that provide protection against inflation by adjusting their principal value based on changes in the Consumer Price Index. VTIP aims to provide investors with a low-cost way to gain exposure to short-term TIPS, which are considered less sensitive to interest rate changes compared to longer-term bonds.

Investors in VTIP may benefit from the potential for inflation protection and the potential for income generation. TIPS are designed to maintain their purchasing power over time, making them ideal for investors concerned about the eroding effects of inflation. Additionally, TIPS pay interest semiannually and provide a fixed rate of return above inflation. VTIP offers a dividend yield that is significantly higher than traditional money market funds, making it attractive for income-seeking investors.