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Vanguard GNMA Fund

Summary Prospectus

February 10, 2012

Investor Shares for Participants

Vanguard GNMA Fund Investor Shares (VFIIX)

The Fund’s statutory Prospectus and Statement of Additional Information dated

February 10, 2012, 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 800-523-1188 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 moderate 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 of the Fund.


Shareholder Fees
(Fees paid directly from your investment)
Sales Charge (Load) Imposed on Purchases	None
Purchase Fee	None
Sales Charge (Load) Imposed on Reinvested Dividends	None
Redemption Fee	None


Annual Fund Operating Expenses
(Expenses that you pay each year as a percentage of the value of your investment)
Management Expenses	0.19%
12b-1 Distribution Fee	None
Other Expenses	0.04%
Total Annual Fund Operating Expenses	0.23%

Example

The following example is intended to help you compare the cost of investing in the
Fund’s Investor Shares with the cost of investing in other mutual funds. It illustrates
the hypothetical expenses that you would incur over various periods if you invest
$10,000 in the Fund’s shares. This example assumes that the Shares provide a return
of 5% a year and that total annual fund 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
$24	$74	$130	$293

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 more 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 386%.

Primary Investment Strategies
The Fund invests at least 80% of its assets in Government National Mortgage
Association (GNMA) pass-through certificates, which are fixed income securities
representing part ownership in a pool of mortgage loans supported by the full faith
and credit of the U.S. government. The balance of the Fund’s assets may be invested
in other types of securities such as U.S. Treasury or other U.S. government agency
securities, including pass-through certificates, as well as in repurchase agreements
collateralized by such securities. Securities issued by most U.S. government agencies,
other than the U.S. Treasury and GNMA, are neither guaranteed by the U.S. Treasury
nor supported by the full faith and credit of the U.S. government. The Fund’s dollar-
weighted average maturity depends on homeowner prepayments of the underlying
mortgages. Although the Fund does not observe specific maturity guidelines, the
Fund’s dollar-weighted average maturity will normally fall within an intermediate-term
range (3 to 10 years).

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:

• Prepayment risk, which is the chance that during periods of falling interest rates,
homeowners will refinance their mortgages before their maturity dates, resulting in
prepayment of mortgage-backed securities held by the Fund. The Fund would then
lose any price appreciation above the mortgage’s principal and would be forced to
reinvest the unanticipated proceeds at lower interest rates, resulting in a decline in
the Fund’s income. Prepayment risk, which is a type of call risk, is high for the Fund.

• Income risk, which is the chance that the Fund’s income will decline because of
falling interest rates. Income risk is generally moderate for intermediate-term bond
funds, so investors should expect the Fund’s monthly income to fluctuate accordingly.

• Interest rate risk, which is the chance that bond prices overall will decline because
of rising interest rates. In addition, when interest rates decline, GNMA prices typically
do not rise as much as the prices of comparable bonds. This is because the market

tends to discount GNMA prices for prepayment risk when interest rates decline.
Interest rate risk should be moderate for the Fund.

• 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 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 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.

Annual Total Returns — Vanguard GNMA Fund Investor Shares

During the periods shown in the bar chart, the highest return for a calendar quarter
was 3.97% (quarter ended December 31, 2008), and the lowest return for a quarter
was –1.24% (quarter ended June 30, 2004).


Average Annual Total Returns for Periods Ended December 31, 2011
	1 Year	5 Years	10 Years
Vanguard GNMA Fund Investor Shares	7.69%	6.83%	5.79%
Barclays Capital U.S. GNMA Bond Index
(reflects no deduction for fees or expenses)	7.90%	6.95%	5.83%

Investment Advisor
Wellington Management Company, LLP

Portfolio Manager

Michael F. Garrett, Senior Vice President and Fixed Income Portfolio Manager of
Wellington Management. He assisted in managing the GNMA Fund from 1999 to
January 2009 and has managed the GNMA Fund since 2010.

Tax Information
The Fund’s distributions will be reinvested in additional Fund shares and accumulate on
a tax-deferred basis if you are investing through an employer-sponsored retirement or
savings plan. You will not owe taxes on these distributions until you begin withdrawals
from the plan. You should consult your plan administrator, your plan’s Summary Plan
Description, or your tax advisor about the tax consequences of plan withdrawals.

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 GNMA Fund Investor Shares—Fund Number 36


© 2012 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.
SPI 036 022012