Vanguard Total Bond Market II Index Fund Investor Shares Returns Calculator
Calculate historical returns and project future compounding for Vanguard Total Bond Market II Inv. Test different monthly amounts, tenures, and step-up scenarios using real historical NAV performance.
Category
Intermediate Core Bond
AUM
$390.19 Billion
Expense Ratio
0.09%
Fund Manager
Joshua C. Barrickman (Vanguard Fixed Income Group)
Vanguard Total Bond Market II Inv Historical SIP Performance & Returns Table
Historical value of standard monthly SIP investments based on actual fund CAGRs.
| Monthly SIP | 3 Years @ 3.9% CAGR | 5 Years @ -0.8% CAGR | 10 Years @ 1.0% CAGR |
|---|---|---|---|
| $100/mo | $3,822 Invested: $3,600 | $5,884 Invested: $6,000 | $12,606 Invested: $12,000 |
| $250/mo | $9,556 Invested: $9,000 | $14,710 Invested: $15,000 | $31,515 Invested: $30,000 |
| $500/mo | $19,112 Invested: $18,000 | $29,420 Invested: $30,000 | $63,031 Invested: $60,000 |
| $1,000/mo | $38,225 Invested: $36,000 | $58,840 Invested: $60,000 | $126,061 Invested: $120,000 |
| $2,500/mo | $95,562 Invested: $90,000 | $147,101 Invested: $150,000 | $315,153 Invested: $300,000 |
* Projections calculated using actual historical 3-year (3.86%), 5-year (-0.77%), and 10-year (0.97%) performance data. Actual mutual fund returns fluctuate with market NAV.
About Vanguard Total Bond Market II Index Fund Investor Shares
Vanguard Total Bond Market II Index Fund Investor Shares provides retail and retirement investors with low-cost, comprehensive exposure to the broad U.S. investment-grade bond market across thousands of public and corporate debt issues.
Investment Strategy
Passive Indexing â Tracks the Bloomberg US Aggregate Float Adjusted Index using quantitative sampling, investing across U.S. Treasuries, government agency debt, corporate bonds, and mortgage-backed securities.
Key Facts
- Tracks the Bloomberg US Aggregate Float Adjusted Index
- Low 0.09% expense ratio for retail investor class
- Over $173 Billion in Investor share class assets
- High-grade credit profile with ~70% government-backed debt
Historical Returns
3-Year CAGR
3.86%
5-Year CAGR
-0.77%
10-Year CAGR
0.97%
Benchmark
Bloomberg US Aggregate Float Adjusted Index
Historical annualized returns as of August 2026. Past performance is no guarantee of future results.
Top Holdings & Sector Allocation
As of September 2026, Vanguard Total Bond Market II Inv's portfolio includes:
Top 5 Holdings
- U.S. Treasury Notes & Bonds (~48-52%)
- Fannie Mae / Freddie Mac Mortgage-Backed Securities (~20-24%)
- Investment-Grade Corporate Debt (~18-22%)
- Government Agency Bonds (~3-5%)
- Commercial MBS & Asset-Backed Securities (~2-4%)
Sector Allocation
Treasury 49.5%, Mortgage-Backed 21.8%, Industrial Corporate 14.2%, Financial Corporate 8.4%, Utilities & Others 6.1%
Risk & Drawdowns
Moderate interest rate sensitivity with duration of ~5.8 years.
Experienced -13% drawdown during 2022 rate hike cycle before stabilizing and recovering.
Tax Treatment
Monthly interest distributions are taxable as ordinary income; optimal in tax-deferred IRA/401(k) accounts.
Who Should NOT Invest in Vanguard Total Bond Market II Inv?
Young, aggressive growth investors seeking multi-decade equity compounding.
About the Fund Manager
Managed by Joshua C. Barrickman, Head of Fixed Income Indexing Americas at Vanguard.
Who Is This Fund Suitable For?
Essential fixed income component for balanced asset allocation, conservative retirement accounts, and target-date fund investors.
More Funds from Vanguard & Similar Schemes
Similar Funds to Consider
- Vanguard Total Bond Market II Index Fund Institutional (VTBNX)
- Vanguard Total Bond Market Index Fund (VBTLX)
- iShares Core U.S. Aggregate Bond ETF (AGG)
Or compare side by side using our main SIP calculator â you can test different funds with the same investment amount and dates to see which performed better.
Other Tools for Vanguard Total Bond Market II Inv Investors
- FIRE Calculator â Plan your retirement corpus with Vanguard Total Bond Market II Inv as part of your portfolio
- Cost of Delay Calculator â See how much delaying your SIP in Vanguard Total Bond Market II Inv could cost you
- SIP vs EMI Calculator â Compare investing in Vanguard Total Bond Market II Inv vs paying off loans
Frequently Asked Questions About Vanguard Total Bond Market II Inv
What is the historical SIP return of Vanguard Total Bond Market II Inv?
Based on the latest data, Vanguard Total Bond Market II Inv has delivered an annualized return (CAGR) of 3.86% over 3 years, -0.77% over 5 years, and 0.97% over 10 years. Experienced -13% drawdown during 2022 rate hike cycle before stabilizing and recovering.
How is Vanguard Total Bond Market II Inv SIP return calculated?
SIP returns are calculated using the XIRR (Extended Internal Rate of Return) method. Each monthly installment buys units at the fund's Net Asset Value (NAV) on that specific day. When markets are down, your SIP buys more units, and when markets are up, it buys fewer units (rupee cost averaging). Our calculator replays this exact process using historical NAV data to compute the precise current value of your accumulated units.
How much return would $500 monthly SIP in Vanguard Total Bond Market II Inv generate over 5 years?
At an estimated annual return rate of -0.77%, a monthly $500 investment ($30,000 total invested) would grow to approximately $29,420 in 5 years, yielding an estimated wealth gain of -$580. Use our interactive calculator above to test custom amounts with actual historical NAV data.
What are the top holdings in Vanguard Total Bond Market II Inv?
Vanguard Total Bond Market II Inv's top holdings include U.S. Treasury Notes & Bonds (~48-52%), Fannie Mae / Freddie Mac Mortgage-Backed Securities (~20-24%), Investment-Grade Corporate Debt (~18-22%), and Government Agency Bonds (~3-5%). The fund's sector allocation is Treasury 49.5%, Mortgage-Backed 21.8%, Industrial Corporate 14.2%, Financial Corporate 8.4%, Utilities & Others 6.1%.
What is the risk profile of Vanguard Total Bond Market II Inv?
Moderate interest rate sensitivity with duration of ~5.8 years. This fund may not be suitable for young, aggressive growth investors seeking multi-decade equity compounding..
What are the tax implications of investing in Vanguard Total Bond Market II Inv?
Monthly interest distributions are taxable as ordinary income; optimal in tax-deferred IRA/401(k) accounts.
Data last updated: September 2026 | Fund data sourced from SEC filings and public exchanges
Ready to check Vanguard Total Bond Market II Inv returns?
Use our free calculator with real historical NAV data â no sign-up needed.
Open Vanguard Total Bond Market II Inv Returns Calculator â