Investing in Treasury Funds

What is investing?

• Putting your money under your mattress

• Spending all your money on toys

• Letting your money grow over time by buying things that could increase in value

• Giving all your money to a friend

What is a stock market?

• A place where groceries are sold.

• A platform for the exchange of services.

• A venue where stocks and bonds are traded.

• A website for buying and selling cars.

What is a bond in financial terms?

• A loan given in exchange for interest

• A type of stock

• A type of currency

• A secret agent

What does this fund primarily invest in?

• 1. U.S. Treasury securities

• 1. An index of large-capitalization stocks

• 1. Corporate investment-grade bonds

• 1. An equal mix of stocks and bonds

2. What is a key risk of investing in this fund?

• 1. This fund invests in very speculative, small companies

• 1. You are guaranteed only a small amount of interest income each year

• 1. If interest rates increase, this fund could lose value

• 1. The fund tracks the S&P 500, which is a risky short-term investment

3. What are this fund’s total net assets?

• 1. $4.07 billion

• 1. $6.8 billion

• 1. $9.2 billion

• 1. $11.325 billion

4. Which benchmark is this fund tracking?

• 1. Vanguard Intermediate Term Treasury Fund Index

• 1. Bloomberg US 5-10 Year Treasury Index

• 1. Issuer Bonds Index

• 1. Vanguard Fixed Income Group Index

5. What is the level of risk of this investment?

• 1. High risk

• 1. Lowest risk

• 1. Low risk

• 1. Medium risk

6. This fund’s expense ratio is _______. You would pay _______ in fees on a balance of $10,000.

• 1. 0.01%; $1

• 1. 0.20%; $20

• 1. 3.78%; $378

• 1. 4.07%; $407

What is the minimum investment for this fund?

• $3,000

• $5,271

• $10,000

• There is no specified minimum investment