UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
N-CSR
CERTIFIED
SHAREHOLDER REPORT
OF
REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment
Company Act file number: 811-04681
| Name of Registrant: |
Vanguard Bond
Index Funds |
| Address of Registrant: |
P.O. Box 2600 |
| |
Valley Forge, PA 19482 |
| Name and address of agent for service: |
Natalie Lamarque, Esquire |
| |
P.O. Box 876 |
| |
Valley Forge, PA 19482 |
Registrant’s
telephone number, including area code: (610) 669-1000
Date
of fiscal year end: December 31
Date
of reporting period: January 1, 2026—June 30, 2026
Item 1: Reports to Shareholders.
TABLE OF CONTENTS
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Vanguard Ultra-Short Bond ETF
ETF Shares (VUSB) Cboe BZX Exchange, Inc.
Semi-Annual Shareholder Report | June 30, 2026
This semi-annual shareholder report contains important information about Vanguard Ultra-Short Bond ETF (the "Fund") for the period of January 1, 2026, to June 30, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447. The report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last six months?
(based on a hypothetical $10,000 investment)
Table SummaryShare Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
ETF Shares | $5 | 0.10%Footnote Reference1 |
|---|
| Footnote | Description |
Footnote1 | Annualized. |
Fund Statistics
(as of June 30, 2026)
Table SummaryFund Net Assets (in millions) | $8,941 |
|---|
Number of Portfolio Holdings | 1,294 |
|---|
Portfolio Turnover Rate | 24% |
|---|
Portfolio Composition % of Net Assets
(as of June 30, 2026)
Table SummaryAsset-Backed/Commercial Mortgage-Backed Securities | 27.2% |
|---|
Corporate Bonds | 63.6% |
|---|
Sovereign Bonds | 2.7% |
|---|
U.S. Government and Agency Obligations | 1.2% |
|---|
Other Assets and Liabilities—NetFootnote Reference | 5.3% |
|---|
This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities.
How has the Fund changed?
Effective January 12, 2026, The Vanguard Group, Inc. exercises portfolio management responsibilities for the fund through its wholly-owned subsidiary, Vanguard Capital Management, LLC.
This is a summary of certain changes to the Fund since December 31, 2025. For more complete information, you may review the Fund’s prospectus, at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature or upon request at 800-662-7447.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
SR931
Item 8: Changes in and Disagreements with Accountants for Open-End
Management Investment Companies.
Not applicable.
Item 9: Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10: Remuneration Paid to Directors, Officers, and Others of
Open-End Management Investment Companies.
Not applicable. The Trustees’ Fees and Expenses are included
in the financial statements filed under Item 7 of this Form.
Item 11: Statement Regarding Basis for Approval of Investment Advisory
Contracts.
Trustees Approve Advisory Arrangements – Bond Index Funds
A majority of independent trustees of the board of Vanguard Short-Term
Bond Index Fund, Vanguard Intermediate-Term Bond Index Fund, Vanguard Long-Term Bond Index Fund, Vanguard Ultra-Short Bond ETF, Vanguard
Inflation-Protected Securities Fund, Vanguard Total Bond Market Fund, and Vanguard Total Bond Market II Fund (Trustees) have renewed each
fund’s investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), which provides investment advisory services
to each fund through its subsidiary, Vanguard Capital Management LLC (VCM). The trustees determined that continuing the advisory arrangements
was in the best interests of each fund and its shareholders.
The Trustees based their decisions upon an evaluation of VCM’s
investment staff, portfolio management process, and performance. This evaluation included information provided by Vanguard’s Oversight
and Manager Search team, which is responsible for fund and advisor oversight and product management
The Oversight and Manager Search team met regularly with the advisor
and made presentations to the Trustees during the fiscal year that directed the Trustees’ focus to relevant information and topics.
The board, or an investment committee made up of Trustees, also received
information throughout the year during advisor presentations conducted by the Oversight and Manager Search team. For each advisor presentation,
the Trustees were provided with letters and reports that included information about, among other things, the advisory firm and the advisor’s
assessment of the investment environment, portfolio performance, and portfolio characteristics.
In addition, the Trustees received periodic reports throughout the
year, which included information about the fund’s performance relative to its peers and benchmark, as applicable, and updates, as
needed, on the Oversight and Manager Search team’s ongoing assessment of the advisor.
Prior to their meeting, the trustees were provided with a memo and
materials that summarized the information they received over the course of the year. The Trustees considered the factors discussed below,
among others. However, no single factor determined whether to approve the arrangements. Rather, it was the totality of the circumstances
that drove the Trustee’s decisions.
Nature, extent, and quality of services
The Trustees considered the quality of each fund’s investment
management services over both the short and long term and took into account the organizational depth and stability of Vanguard and VCM.
The Trustees considered that Vanguard has been managing investments for more than four decades. The Fixed Income Group, now within VCM,
adheres to the same sound, disciplined investment management process and has considerable experience, stability and depth. The Fixed Income
Group emphasizes a disciplined and repeatable approach to risk-taking and security selection, with the objective of delivering tight tracking
error and consistent, risk-adjusted alpha.
The Trustees concluded that VCM’s experience, stability, depth,
and performance, among other factors, warranted continuation of the advisory arrangements.
Investment performance
The Trustees determined that VCM’s Fixed Income Group, in its
management of Vanguard funds, including the funds, has a track record of consistent performance and disciplined investment processes.
The Trustees concluded that the performance was such that the advisory arrangements should continue.
Cost
The Trustees concluded that each fund’s expense ratio was below
the average expense ratio charged by funds in its peer group and that each fund’s advisory expenses were also below the peer-group
average.
The Trustees do not conduct a profitability analysis of Vanguard in
providing investment advisory services through VCM because of Vanguard’s unique structure. Unlike most other mutual fund management
companies, Vanguard is owned by the funds it oversees.
The benefit of economies of scale
The Trustees concluded that each fund’s arrangement with Vanguard,
and services rendered through VCM, ensure that each fund will realize economies of scale as it grows, with the cost to shareholders declining
as fund assets increase.
The Trustees will consider whether to renew the advisory arrangements
again after a one-year period.
Item 12:
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13: Portfolio Managers of Closed-End Management Investment
Companies.
Not applicable.
Item 14: Purchase of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
Not applicable.
Item 15: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 16: Controls and Procedures.
(a) Disclosure Controls and Procedures. The
Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based
on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting.
There were no changes in the Registrant’s Internal Control Over Financial Reporting that occurred during the period covered by this
report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial
reporting.
Item 17: Disclosure of Securities Lending Activities for
Closed-End Management Investment Companies.
Not applicable.
Item 18: Recovery of Erroneously Awarded Compensation
Not applicable.
Item 19: Exhibits.
