|
| Vanguard Long-Term Investment-Grade Fund |
| Summary Prospectus |
| May 26, 2011 |
| Investor Shares & Admiral™ Shares |
| Vanguard Long-Term Investment-Grade Fund Investor Shares (VWESX) |
| Vanguard Long-Term Investment-Grade Fund Admiral Shares (VWETX) |
| The Fund’s statutory Prospectus and Statement of Additional Information dated |
| May 26, 2011, are incorporated into and made part of this Summary Prospectus |
| by reference. |
| Before you invest, you may want to review the Fund’s Prospectus, which |
| contains more information about the Fund and its risks. You can find |
| the Fund’s Prospectus and other information about the Fund online at |
| www.vanguard.com/prospectus. You can also get this information at no |
| cost by calling 800-662-7447 or by sending an e-mail request to |
| online@vanguard.com. |
| The Securities and Exchange Commission (SEC) has not approved or disapproved these securities or |
| passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense. |
Investment Objective
The Fund seeks to provide a high and sustainable level of current income.
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 | None | None |
| 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 Shares | |
| Management Expenses | 0.21% | 0.09% |
| 12b-1 Distribution Fee | None | None |
| Other Expenses | 0.03% | 0.03% |
| Total Annual Fund Operating Expenses | 0.24% | 0.12% |
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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 invest $10,000 in the Fund’s shares. These examples assume that the
Shares provide a return of 5% a year and that operating expenses remain as stated in
the preceding table. The results apply whether or not you 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 | $25 | $77 | $135 | $306 |
| Admiral Shares | $12 | $39 | $68 | $154 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are held in
a taxable account. These costs, which are not reflected in annual fund operating
expenses or in the previous expense example, reduce the Fund’s performance. During
the most recent fiscal year, the Fund’s portfolio turnover rate was 19%.
Primary Investment Strategies
The Fund invests in a variety of high-quality and, to a lesser extent, medium-quality
fixed income securities, at least 80% of which will be intermediate- and long-term
investment-grade securities. High-quality fixed income securities are those rated the
equivalent of A3 or better by Moody‘s Investors Service, Inc., or another independent
rating agency or, if unrated, are determined to be of comparable quality by the advisor;
medium-quality fixed income securities are those rated the equivalent of Baa1, Baa2,
or Baa3 by Moody‘s or another independent rating agency or, if unrated, are
determined to be of comparable quality by the advisor. (Investment-grade fixed
income securities are those rated the equivalent of Baa3 and above by Moody‘s.) The
Fund is expected to maintain a dollar-weighted average maturity of 15 to 25 years.
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Primary Risks
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:
• Interest rate risk, which is the chance that bond prices overall will decline because
of rising interest rates. Interest rate risk should be high for the Fund because it invests
mainly in long-term bonds, whose prices are much more sensitive to interest rate
changes than are the prices of short-term bonds.
• Call risk, which is the chance that during periods of falling interest rates, issuers of
callable bonds may call (redeem) securities with higher coupons or interest rates
before their maturity dates. The Fund would then lose potential price appreciation and
would be forced to reinvest the unanticipated proceeds at lower interest rates,
resulting in a decline in the Fund’s income. For mortgage-backed securities, this risk is
known as prepayment risk. Call/prepayment risk should be moderate for the Fund. To
minimize the impact of call/prepayment risk, the advisor generally seeks to purchase
bonds that have reasonable protection from being called.
• Credit risk, which is the chance that a bond issuer will fail to pay interest and
principal in a timely manner, or that negative perceptions of the issuer’s ability to
make such payments will cause the price of that bond to decline. Although the Fund
invests a limited portion of its assets in low-quality bonds, credit risk should be low for
the Fund because it invests mainly in bonds that are considered high-quality and, to a
lesser extent, in bonds that are considered medium-quality.
• Manager risk, which is the chance that poor security selection will cause the Fund to
underperform relevant benchmarks or other funds with a similar investment objective.
An investment in the Fund is not a deposit of a bank and is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other government agency.
Annual Total Returns
The following bar chart and table are intended to help you understand the risks of
investing in the Fund. The bar chart shows how the performance of the Fund‘s
Investor Shares has varied from one calendar year to another over the periods shown.
The table shows how the average annual total returns of the share classes presented
compare with those of a relevant market index, which has investment characteristics
similar to those of the Fund. Keep in mind that the Fund’s past performance (before
and after taxes) does not indicate how the Fund will perform in the future. Updated
performance information is available on our website at vanguard.com/performance or
by calling Vanguard toll-free at 800-662-7447.
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Annual Total Returns — Vanguard Long-Term Investment-Grade Fund Investor Shares1
During the periods shown in the bar chart, the highest return for a calendar quarter
was 11.33% (quarter ended September 30, 2009), and the lowest return for a quarter
was –8.28% (quarter ended March 31, 2009).
| Average Annual Total Returns for Periods Ended December 31, 2010 | |||
| 1 Year | 5 Years | 10 Years | |
| Vanguard Long-Term Investment-Grade Fund Investor Shares | |||
| Return Before Taxes | 10.71% | 5.62% | 7.09% |
| Return After Taxes on Distributions | 8.58 | 3.48 | 4.87 |
| Return After Taxes on Distributions and Sale of Fund Shares | 6.93 | 3.51 | 4.75 |
| Barclays Capital U.S. Long Credit A or Better Bond Index | |||
| (reflects no deduction for fees, expenses, or taxes) | 10.02% | 5.00% | 7.09% |
| Since | |||
| Inception | |||
| (Feb. 12, | |||
| 1 Year | 5 Years | 2001) | |
| Vanguard Long-Term Investment-Grade Fund Admiral Shares | |||
| Return Before Taxes | 10.85% | 5.74% | 7.02% |
| Barclays Capital U.S. Long Credit A or Better Bond Index | |||
| (reflects no deduction for fees, expenses, or taxes) | 10.02% | 5.00% | 6.83% |
Actual after-tax returns depend on your tax situation and may differ from those shown
in the preceding table. When after-tax returns are calculated, it is assumed that the
shareholder was in the highest individual federal marginal income tax bracket at the
time of each distribution of income or capital gains or upon redemption. State and
local income taxes are not reflected in the calculations. Please note that after-tax
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returns are shown only for the Investor Shares and may differ for each share class.
After-tax returns are not relevant for a shareholder who holds fund shares in a tax-
deferred account, such as an individual retirement account or a 401(k) plan. Also,
figures captioned Return After Taxes on Distributions and Sale of Fund Shares will be
higher than other figures for the same period if a capital loss occurs upon redemption
and results in an assumed tax deduction for the shareholder.
Investment Advisor
Wellington Management Company, LLP
Portfolio Manager
Lucius T. Hill, III, Senior Vice President and Fixed Income Portfolio Manager of
Wellington Management. He has managed or co-managed the Fund since 2008.
Purchase and Sale of Fund Shares
You may purchase or redeem shares online through our website (vanguard.com), by
mail (The Vanguard Group, P.O. Box 1110, Valley Forge, PA 19482-1110), or by telephone
(800-662-2739). The following table provides the Fund’s minimum initial and subsequent
investment requirements.
| Account Minimums | Investor Shares | Admiral Shares |
| To open and maintain an account | $3,000 | $50,000 |
| To add to an existing account | $100 (other than by Automatic | $100 (other than by Automatic |
| Investment Plan, which | Investment Plan, which | |
| has no established minimum) | has no established minimum) |
Tax Information
The Fund’s distributions may be taxable as ordinary income or capital gain.
Distributions are taxable to you for federal income tax purposes, whether or not you
reinvest these amounts in additional Fund shares. A sale or exchange of Fund shares
is a taxable event, which means that you may have a capital gain to report as income,
or a capital loss to report as a deduction, when you complete your federal income tax
return. Dividend and capital gains distributions that you receive, as well as your gains
or losses from any sale or exchange of Fund shares, may also be subject to state and
local income taxes.
Payments to Financial Intermediaries
The Fund and its investment advisor do not pay financial intermediaries for sales of
Fund shares.
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| Vanguard Long-Term Investment-Grade Fund Investor Shares—Fund Number 28 | |
| Vanguard Long-Term Investment-Grade Fund Admiral Shares—Fund Number 568 | |
| © 2011 The Vanguard Group, Inc. All rights reserved. | |
| Vanguard Marketing Corporation, Distributor. | |
| SP 28 052011 | |