Vanguard Total Bond Market Index ETF (BND)

The Vanguard Total Bond Market Index ETF (BND) started trading in April 2007. The ETF tracks the Lehman US Aggregate Bond Index, minus expenses and fees. BND takes a sampling approach to tracking the index, owning over a third of the index's components.

The Lehman US Aggregate Bond Index measures the performance of the US bond universe. This includes asset backed securities, corporate backed securities, government securities, and mortgage backed securities.

The ETF is passively managed, with an expense ratio of 0.11%. The fund's most recent annual turnover rate was 54%.

Although this is subject to change, BND pays a monthly distribution. The ex-date is usually the first trading day of every month. Distribution amounts vary.

As of July 2008, the Vanguard Total Bond Market Index ETF held 3,410 bonds. They had an average maturity of 7.5 years, and an average credit quality of AA1/AA2. The average coupon was 5.5%.