https://www.sec.gov/Archives/edgar/data/794105/000093247119007082/ltbond497052019.htm497 1 ltbond497052019.htm VANGUARD LONG-TERM BOND INDEX FUND 497
Vanguard Long-Term Bond Index Fund
Supplement Dated May 10, 2019, to the Prospectus and Summary Prospectus for Investor Shares and Admiral™ Shares Dated April 26, 2019
Effective July 10, 2019, the Fund will charge a 0.50% fee on all purchases of its Investor Shares and Admiral Shares, including shares that you purchase by exchange from another Vanguard fund. Purchases that result from reinvested dividend or capital gains distributions are not subject to the purchase fee.
Unlike a sales charge or a load paid to a broker or a fund management company, purchase fees are paid directly to the Fund to offset the costs of buying securities. This fee is separate from, and in addition to, other expenses charged by the Fund.
Prospectus and Summary Prospectus Text Changes
Effective July 10, 2019, the following will replace similar text under the heading “Fees and Expenses” in the Fund Summary section:
Fees and Expenses
The following table describes the fees and expenses you may pay if you buy and hold Investor Shares or Admiral Shares of the Fund.
Shareholder Fees
(Fees paid directly from your investment)
Investor Shares Admiral Shares
Sales Charge (Load) Imposed on Purchases None None
Purchase Fee 0.50% 0.50%
Sales Charge (Load) Imposed on Reinvested Dividends None None
Redemption Fee None None
Account Service Fee (for fund account balances
below $10,000) $20/year $20/year
Annual Fund Operating Expenses
(Expenses that you pay each year as a percentage of the value of your investment)
Investor Shares Admiral Shares1
Management Fees 0.13% 0.04%
12b-1 Distribution Fee None None
Other Expenses 0.02% 0.03%
Total Annual Fund Operating Expenses 0.15% 0.07%
1 The expense information shown in the table reflects estimated amounts for the current fiscal year.
Examples
The following examples are intended to help you compare the cost of investing in the Fund’s Investor Shares or Admiral Shares with the cost of investing in other mutual funds. They illustrate the hypothetical expenses that you would incur over various periods if you were to invest $10,000 in the Fund’s shares. These examples assume that the shares provide a return of 5% each year and that total annual fund operating expenses remain as stated in the preceding table. You would incur these hypothetical expenses whether or not you were to redeem your investment at the end of the given period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 Year 3 Years 5 Years 10 Years
Investor Shares $65 $98 $134 $241
Admiral Shares $57 $72 $89 $139
Prospectus Text Changes
In the More on the Funds section, a new section “Purchase and Transaction Fees” will be added after the “Temporary Investment Measures” section:
Purchase and Transaction Fees
Vanguard Long-Term Bond Index Fund charges a fee of 0.50% on all purchases of shares, including shares that you purchase by exchange from another Vanguard fund.
In addition, Vanguard Total Bond Market Index Fund, Vanguard Short-Term Bond Index Fund, and Vanguard Intermediate-Term Bond Index Fund each reserve the right to charge the following transaction fees to investors whose aggregate share purchases into a Fund equal or exceed the following amounts:
Vanguard Fund Transaction Fee Aggregate Purchases
Total Bond Market Index Fund 0.25% Over $500 million
Short-Term Bond Index Fund 0.15 Over $200 million
Intermediate-Term Bond Index Fund 0.25 Over $100 million
Each of the Vanguard Total Bond Market Index Fund, Vanguard Short-Term Bond Index Fund, and Vanguard Intermediate-Term Bond Index Fund may impose these transaction fees if an investor’s aggregate purchases into a Fund over a 12-month period exceed, or are expected to exceed, the indicated amounts upon notice to the client in conjunction with a purchase that triggers application of the fees. The transaction fees will be assessed only if the client elects to proceed with the purchase. Generally, these fees will not apply to transactions coordinated in advance between a client and Vanguard.
Unlike a sales charge or a load paid to a broker or a fund management company, purchase and transaction fees are paid directly to the Fund to offset the costs of buying securities.
See Investing With Vanguard for more information about fees.
In the Investing With Vanguard section, the following will replace similar text that begins with the heading “Transaction Fees on Purchases”:
Purchase and Transaction Fees
Vanguard Long-Term Bond Index Fund charges a fee of 0.50% on purchases of shares, including shares that you purchase by exchange from another Vanguard fund.
In addition, Vanguard Total Bond Market Index Fund, Vanguard Short-Term Bond Index Fund, and Vanguard Intermediate-Term Bond Index Fund each reserve the right to charge the following transaction fees to investors whose aggregate share purchases into a Fund equal or exceed the following amounts:
Vanguard Fund Transaction Fee Aggregate Purchases
Total Bond Market Index Fund 0.25% Over $500 million
Short-Term Bond Index Fund 0.15 Over $200 million
Intermediate-Term Bond Index Fund 0.25 Over $100 million
Each of the Vanguard Total Bond Market Index Fund, Vanguard Short-Term Bond Index Fund, and Vanguard Intermediate-Term Bond Index Fund may impose these transaction fees if an investor’s aggregate purchases into a Fund over a 12-month period exceed, or are expected to exceed, the indicated amounts upon notice to the client in conjunction with a purchase that triggers application of the fees. The transaction fees will be assessed only if the client elects to proceed with the purchase. Generally, these fees will not apply to transactions coordinated in advance between a client and Vanguard.
Purchase fees will not apply to Vanguard fund account purchases in the following circumstances: (1) purchases of shares through reinvested dividends or capital gains distributions; (2) share transfers, rollovers, or reregistrations within the same fund; (3) conversions of shares from one share class to another in the same fund; (4) purchases in kind; and (5) share rollovers to an IRA within the same Vanguard fund for plans in which Vanguard serves as a recordkeeper. Unlike a sales charge or a load paid to a broker or a fund management company, purchase and transaction fees are paid directly to the Fund to offset the costs of buying securities.
© 2019 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor...
(includes institutional classes also)
Comments
As I read this, VG is essentially discouraging institutions from dumping $$$ into these funds as well? So it's kind of a good Vanguardian thing that could help the 'little people' in retail-land, I guess....