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About VANGUARD US AGG BOND INDEX ETF CAD

The fund provides exposure to a wide spectrum of US investment grade, taxable fixed income securities through a passively-managed, index-sampling strategy. This means that the sub-advisor matches the funds investments to the primary risk factors and other key characteristics of the underlying index. The fund primarily gains its exposure by investing in a US-domiciled Vanguard fund that tracks a broad US bond index. In the alternative, VBU may also invest directly in the bonds that make up the index. The index is market-value weighted, and includes Treasurys, agencies, MBS, ABS, and investment-grade corporate bonds. Such bonds have a term to maturity greater than one year. The fund uses derivative instruments to hedge any foreign currency exposure back to CAD.