Vanguard Lifetime Income Program - Inflation-Protected Securities Fund [QF]
Risk Attributes

Historic Volatility Measures as of 08/31/2016

BenchmarkR-squared* Beta*
Bloomberg Barclays U.S. Treasury Inflation Protected Securities Index 0.991.02
Bloomberg Barclays U.S. Aggregate Bond Index

*R-squared and beta are calculated from trailing 36-month fund returns relative to the associated benchmark.

Risks Associated with Conservative to Moderate Funds

Vanguard funds classified as moderate to conservative are subject to low-to-moderate fluctuations in share prices. In general, such funds are appropriate for investors with medium-term investment horizons (four to ten years), for those seeking an investment that emphasizes income rather than growth, and for investors who have a low tolerance for the risk of short-term price fluctuations.

Plain Talk About Risk

An investment in the fund could lose money over short or even long periods. You should expect the fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall bond market. The fund’s performance could be hurt by:

  • Income fluctuations: The fund’s quarterly income distributions are likely to fluctuate considerably more than the income distributions of a typical bond fund. Income fluctuations associated with changes in interest rates are expected to be low; however, income fluctuations associated with changes in inflation are expected to be high. Overall, investors can expect income fluctuations to be high for the fund.
  • Interest rate risk: The chance that bond prices will decline because of rising interest rates.
  • Nondiversification risk: The chance that the fund’s performance may be hurt disproportionately by the poor performance of relatively few securities. The fund is considered nondiversified, which means that it may invest a greater percentage of its assets in the securities of particular issuers as compared with other mutual funds.
  • Manager risk: The chance that poor security selection will cause the fund to underperform relevant benchmarks or other funds with a similar investment objective.