497 1 sectorbondindex-497e.htm SECTOR BOND INDEX FUNDS SUPPLEMENT sectorbondindex-497e.htm - Generated by SEC Publisher for SEC Filing

Vanguard Short-Term Government Bond Index Fund
Vanguard Intermediate-Term Government Bond Index Fund
Vanguard Long-Term Government Bond Index Fund

 

Supplement to the Prospectus and Summary Prospectus Dated December 22, 2016

New Target Indexes and New Fund Names

The board of trustees of Vanguard Scottsdale Funds (the “Board”) has approved the adoption of new target indexes for each of Vanguard Short-Term Government Bond Index Fund, Vanguard Intermediate-Term Government Bond Index Fund, and Vanguard Long-Term Government Bond Index Fund (each, a “Fund”), as set out in the table below. These new indexes will focus each Fund’s investments on Treasury securities and reduce or eliminate each Fund’s investments in U.S. government agency securities.

Vanguard Fund Current Target Index New Target Index
    Bloomberg Barclays US
  Bloomberg Barclays U.S. 1-3 Treasury Bond 1-3 Year
Vanguard Short-Term Year Government Float Term Float Adjusted
Government Bond Index Fund Adjusted Index Index
    Bloomberg Barclays US
  Bloomberg Barclays U.S. 3-10 Treasury Bond 3-10 Year
Vanguard Intermediate-Term Year Government Float Term Float Adjusted
Government Bond Index Fund Adjusted Index Index
  Bloomberg Barclays U.S. Long Bloomberg Barclays US
Vanguard Long-Term Government Government Float Adjusted Long Treasury Float
Bond Index Fund Index Adjusted Index

 

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In addition, the Board has approved corresponding name changes for the Funds, as set out in the table below:

Current Fund Name New Fund Name
Vanguard Short-Term Government Bond Vanguard Short-Term Treasury Index
Index Fund Fund
Vanguard Intermediate-Term Government Vanguard Intermediate-Term
Bond Index Fund Treasury Index Fund
Vanguard Long-Term Government Bond Vanguard Long-Term Treasury Index
Index Fund Fund

 

The Funds are expected to implement the index and name changes in the fourth quarter of 2017.

To protect the Funds from the potential for harmful “front running” by traders, the exact timing of the index (and related name) changes will not be disclosed to investors. In the meantime, the Funds will continue to seek to track their current indexes.

The adjustments to each Fund’s portfolio holdings are expected to result in modest, temporary increases in each Fund’s transaction costs and portfolio turnover rate. It is important to note that the actual transaction costs, portfolio turnover rate, and any other costs will be highly dependent on a number of factors, including the market environment at the time of the portfolio adjustments. These changes are not expected to increase Fund expense ratios.

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PS 1942 082017