Vanguard Intermediate-Term Treasury Index Fund Admiral Shares (VSIGX) is an open-end mutual fund that employs an indexing investment approach designed to track the Bloomberg U.S. Treasury 3-10 Year Index. The fund invests at least 80% of its assets in fixed income securities issued by the U.S. Treasury with maturities between 3 and 10 years, excluding inflation-protected bonds, floating rate securities, and certain other types; its portfolio consists predominantly of U.S. Treasury notes, with top holdings typically representing around 10% of assets and nearly 100% allocation to government bonds. Launched on August 4, 2010, the fund is domiciled in the United States, managed by Joshua Barrickman since February 22, 2013, and headquartered with its parent company, The Vanguard Group, Inc., in Malvern, Pennsylvania.
The Admiral Shares class requires a minimum initial investment of $3,000 and features a low net expense ratio of 0.06%, with total net assets exceeding $39 billion across the fund. It targets investors seeking current income and high credit quality through passively managed exposure to intermediate-term U.S. Treasuries, categorized in the Morningstar Intermediate Government segment. Geographic operations are focused exclusively on U.S. bond markets, with daily pricing and no front-end or deferred loads.
In a significant recent development, effective February 1, 2025, Vanguard reduced the expense ratio for VSIGX as part of its largest fee cut in history, lowering costs across 168 share classes in 87 funds and saving investors an estimated $350 million annually; this adjustment was filed with the SEC on February 3, 2025, enhancing the fund's competitive positioning. The fund maintains tight sector and subsector exposure relative to its benchmark, with an average effective duration of approximately 5 years, contributing to moderate interest-rate sensitivity. No major acquisitions, partnerships, or strategic shifts specific to VSIGX have been reported in the last 1-2 years, though Vanguard continues broad operational enhancements firm-wide.