Vanguard has kept the fund 100% government guaranteed (not just AAA), made sensible adjustments to exploit the curve and relentlessly lowers the management fee--now down to a microscopic 1/10 of 1 per cent. This is far lower than many institutional funds requiring minimum investment of millions. This is a great fund to put in a tax deferred account and benefit from reinvesting your div into a fluctuating share price. Lower price at higher yield? Great, it automatically buys more shares. Higher price at lower yield? No problem, it automatically buys fewer shares. Better yet, split with the VAIPX. Let the VAIPX pay out div to VUSUX. Then you really benefit from higher inflation in a long bond account.