Vanguard Lifetime Income Program - Balanced Portfolio
Holdings

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so that investors' shares, when sold, may be worth more or less than their original cost. See performance data current to the most recent month-end, which may be higher or lower than that cited.

Asset Allocation as of 07/31/2016


Fund Characteristics as of 07/31/2016
 VLIP-Balanced PortfolioComposite Stock/Bond Index (VVIF)*
Turnover Rate (Fiscal Year End December)45.3%
Short-Term Reserves2.4%
Total Net Assets

Equity Characteristics as of 07/31/2016
 VLIP-Balanced PortfolioComposite Stock/Bond Index (VVIF) *
Number of Stocks93
Median Market Cap
Price/Earnings Ratio 18.3x
Price/Book Ratio 2.2x
Return on Equity 16.5%
Earnings Growth Rate 3.9%
Foreign Holdings8.1%

Fixed-Income Characteristics as of 07/31/2016
 VLIP-Balanced PortfolioComposite Stock/Bond Index (VVIF) *
Number of Bonds743
Yield to Maturity 2.3%
Average Coupon3.6%
Average Effective Maturity 10.4 years
Average Duration 7.1 years

Equity Sector Diversification as of 07/31/2016
 VLIP-Balanced PortfolioComposite Stock/Bond Index (VVIF) *
Consumer Discretionary7.20%
Consumer Staples8.40%
Energy10.30%
Financials22.30%
Health Care18.60%
Industrials11.30%
Information Technology13.10%
Materials2.20%
Other0.00%
Telecommunication Services2.40%
Utilities4.20%

Sector categories are based on the Global Industry Classification Standard system.

Month End Ten Largest Holdings as of 07/31/2016
RankHolding
1Wells Fargo & Co.
2Merck & Co. Inc.
3Microsoft Corp.
4Comcast Corp.
5Alphabet Inc.
6Chevron Corp.
7Intel Corp.
8JPMorgan Chase & Co.
9Verizon Communications Inc.
10Chubb Ltd.
Ten largest holdings = 17.5% of total net assets
Ten largest holdings = 26.9% of equities

Quarter-end top ten holdings with weighting

Portfolio holdings

Distribution By Issuer (% of bonds) as of 07/31/2016
 VLIP-Balanced Portfolio
Asset-Backed3.5%
Commercial Mortgage-Backed0.5%
Finance26.5%
Foreign3.9%
Government Mortgage-Backed1.2%
Industrial35.8%
Other5.4%
Treasury/Agency16.0%
Utilities7.2%
Total100.0%

Distribution By Credit Quality** (% of bonds) as of 07/31/2016
 VLIP-Balanced Portfolio
U.S. Government17.7%
Aaa4.2%
Aa11.3%
Aa23.1%
Aa39.7%
A112.4%
A212.7%
A319.9%
Baa111.6%
Baa25.7%
Baa31.7%
Total100.0%

* Made up of two unmanaged benchmarks, weighted 65% S&P 500 Index and 35% Barclays U.S. Credit A or Better Bond Index.

** Vanguard managed taxable index bond funds, balanced funds, ETFs, and annuity portfolios: Credit-quality ratings for each issue are obtained from Barclays using ratings derived from Moody's Investors Service (Moody's), Fitch Ratings (Fitch), and Standard & Poor's (S&P). When ratings from all three agencies are available, the median rating is used. When ratings are available from two of the agencies, the lower rating is used. When one rating is available, that rating is used. Vanguard managed taxable non-index bond funds, municipal bond funds, balanced funds and annuity portfolios; Wellington Management Company managed bond funds, balanced funds and annuity portfolios: Credit-quality ratings for each issue are obtained from Moody's and S&P, and the higher rating for each issue is used. Oaktree Capital Management managed fund: Credit quality ratings are obtained from S&P. Vanguard taxable money market funds: Credit-quality ratings for each issuer are obtained from Moody's and S&P. Issuer long-term ratings are mapped to each issue, and the lower rating is used. Unrated securities are determined to be of comparable quality to a rated security in accordance with SEC Rule 2a-7 under the Investment Company Act of 1940. Vanguard municipal money market funds: Short-term credit-quality ratings for each issuer are obtained from Moody's, S&P, and Fitch. A rating is assigned to each issue based on the following priority order: Moody's, S&P, Fitch. Unrated securities are determined to be of comparable quality to a rated security in accordance with SEC Rule 2a-7 under the Investment Company Act of 1940.

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