Learn more about bond 9–box style

To evaluate your investing style, we use a 9-square grid—called a "style box"—to assess funds based on the types of bonds they hold. No individual bonds are included in the analysis. Style box evaluations include the bond and bond funds in your account group, which are analyzed in two ways:

1. Credit quality: The average credit rating of the bonds and bond funds.
2. Interest rate sensitivity: How sensitive a bond or fund's price is to changes in interest rates.

View a flash presentation on bond style boxes

Note: Category definitions may vary among fund companies, rating services (such as Morningstar, Inc.), and other industry organizations.

How we determine bond 9–box style

For each non-Vanguard fund, we generally use the style-box classification assigned by Morningstar. We categorize Vanguard® funds and Variable Annuity Portfolios based on their long-term objectives, which may differ from Morningstar's classification.

We assign each of your bond and bond mutual fund holdings to one of nine possible style-box segments (one box per fund). When analyzing the Vanguard Total Bond Market Index or Vanguard Balanced Index, the funds are divided according to the breakdown of the Barclays Aggregate Index. Then we determine what percentage of the current value of your holdings falls into each segment.

The example that follows illustrates how the style box would look if you held four bond mutual funds with the following values:

Since Fund A and Fund B both invest primarily in low interest rate sensitivity, high credit quality bonds, they would be combined to show 50% of your bond fund holdings as low interest rate sensitivity, high credit quality. Fund C, which represents 25% of your bond fund holdings, would be shown as 25% medium interest rate sensitivity, high credit quality. Fund D, which represents the remaining 25% of your bond fund holdings, would be shown as 25% high interest rate sensitivity, high credit quality.

For Vanguard funds and brokerage holdings, prices and shares used to compute your current account value are as of the previous business day. For investments you entered in Outside Investments, prices may be from today's close, especially if you're viewing them after the market close, which is generally 4 p.m., Eastern time.

Data source information

Morningstar, Inc. provided some of the data in this section.

Vanguard is not responsible for the accuracy of data provided by third parties.

Investments in bonds and bond funds are subject to interest rate, credit, and inflation risk.