Vanguard Target Maturity 2034 Corporate Bond ETF

As with any investment, an investment in the fund could lose money over any time period. The fund’s share price and total return may fluctuate, potentially within a wide range. The principal risks of investing in the fund are summarized below. Each of the following risks could affect the fund’s performance:

• General Market Risk. The markets in which the fund invests can be affected by a variety of factors. These factors, which can be real or perceived, may include economic, market, political, and regulatory conditions and developments as well as local, regional, or global events such as wars, military conflicts, natural disasters, and public health issues. In addition, investor sentiment and expectations regarding these factors can also impact the markets. Different parts of the market, including different industries and sectors as well as different types of securities, may react differently to factors that affect the market. These factors can contribute to market uncertainty, market volatility, and fluctuations in the value of the fund’s investments, thereby resulting in potential losses to the fund over short or long periods.
• Investing in Bond Markets. The fund may be impacted by the general condition of the bond markets and by factors that affect bonds and bond issuers. For example, as a general rule, bond prices and interest rates move in opposite directions. When interest rates rise, bond prices tend to fall, and when interest rates fall, bond prices tend to go up. Bond income also is affected by changes in interest rates. Interest rates can rise or fall for a number of reasons, including, but not limited to, central bank monetary policy, inflationary or deflationary pressures, and changes in general market and economic conditions. Changing interest rates, including, but not limited to, rates that fall below zero, could have unpredictable effects on the overall market and may expose the bond markets in particular to heightened volatility and potential illiquidity. The degree to which the fund is impacted by certain bond market risks may vary based on factors disclosed in its principal investment strategies, such as the types of bonds in which it invests and the overall credit quality, average maturity, and/or average duration of its bond holdings.
• Interest Rate Risk. During periods of rising interest rates, bond prices overall may decline, which could result in a decline in the fund’s value. The prices of longer-term bonds are more sensitive to changes in interest rates than the prices of shorter-term bonds.
• Income Risk. During periods of falling interest rates, the fund’s income may decline. The income paid by shorter-term bonds is subject to a higher degree of fluctuation than the income paid by longer-term bonds.
• Credit Risk. Credit risk refers to the chance that an issuer will default (fail to meet its credit obligations) or fail to make payments in a timely manner, which could result in a loss to the fund. In addition, negative perceptions of an issuer’s ability to make payments can cause the price of a security to decline. While all debt securities are subject to credit risk to some extent, those with higher credit quality ratings generally pose less credit risk than those with lower credit quality ratings.
• Bond Liquidity Risk. If the fund is unable to sell a security at an advantageous time or price, its returns may be reduced. There may be limited trading in the secondary market for certain debt securities, which could make them more difficult to value or sell. 
• Call Risk. Certain bonds held by the fund may be callable. The issuer of a callable bond has the right to “call” (redeem) the bond before its maturity date. Calls on bonds held by the fund would result in the fund losing any price appreciation above the bond’s call price. In addition, because bond calls occur more frequently during periods of falling interest rates, the fund likely would be forced to reinvest the proceeds of any called bonds at a lower interest rate than that of the called bonds, resulting in a decline in the fund’s income and a potential loss in the value of the fund’s investments. Frequent bond calls and subsequent reinvestments of the proceeds also would increase the fund’s turnover rate.
• Extension Risk. During periods of rising interest rates, certain bonds held by the fund may be paid off substantially more slowly than originally anticipated. As a result, the value of the bonds may fall, resulting in a decline in the fund’s income and a potential loss in the value of the fund’s investments.
• Investing in a Target Maturity Fund. In general, if held until the planned liquidation date, an investment in the fund may produce returns comparable to a direct investment in a group of bonds of similar maturity and credit quality (e.g., the bonds that make up the target index). However, an investment in the fund will differ from a direct investment in bonds in several ways. Unlike the bonds that make up the target index, which pay regular interest and a fixed amount of principal at maturity, the fund’s distributions and liquidation amount cannot be predicted at the time of investment. Rather, the fund’s income distributions will vary over time. The fund’s income distributions also could occur at a greater (or lesser) rate than the interest payments the fund receives on its bond holdings, which would result in the fund distributing a greater (or lesser) amount to shareholders at liquidation. The rate of the fund’s distributions could adversely affect the tax characterization of your returns on an investment in the fund relative to a direct investment in bonds. Additionally, if the liquidation amount you receive is higher or lower than the amount of your initial investment, you may experience a gain or loss for tax purposes. During the 12 months prior to the planned liquidation date, the fund’s yield generally will tend to move toward prevailing money market rates. As a result, the fund’s yield may be lower than prevailing bond yields and/or the yields of bonds previously held by the fund. This is especially relevant if you purchase shares during the year of the planned liquidation date. 
• Index Investing. The fund is subject to risks associated with index investing. Because the fund generally seeks to track the performance of the target index regardless of how the target index is performing, the fund’s performance may be lower than it would be if it were actively managed. Additionally, because the fund does not hold all of the securities included in the target index, it is subject to the risk that the representative sample of securities selected by the advisor will, in the aggregate, vary from the investment profile of the full target index. The performance of the fund’s investments, in the aggregate, may not match the investment performance of the target index. This risk, known as tracking error risk, may be heightened during times of increased market volatility or under other unusual market conditions. The fund also could be negatively impacted by changes to the target index made by the index provider or by errors made by the index provider. Any gains, losses, or costs associated with or resulting from an error made by the index provider will generally be borne by the fund and, as a result, the fund’s shareholders. 
• Concentration Risk. Except as may be necessary to approximate the composition of its target index, the fund will not concentrate its investments in the securities of issuers whose principal business activities are in the same industry or group of industries. If the target index becomes concentrated and the fund needs to concentrate in the same industry or group of industries, its performance could be negatively impacted by the industry or industries in which it is concentrated.
• ETF Share Trading. The fund’s ETF shares are listed for trading on Nasdaq and individual investors may only buy and sell them on the secondary market at market prices. Although it is expected that the market price of an ETF share typically will approximate its net asset value (NAV), there may be times when the market price of an ETF share and its NAV differ significantly. Disruptions to creation and redemption transactions, the existence of significant market volatility, or potential lack of an active trading market for ETF shares (including through a trading halt), as well as other factors, may result in ETF shares trading significantly above (at a premium) or below (at a discount) the fund’s NAV or the intraday value of the fund’s holdings. Thus, you may pay more or less than NAV when you buy ETF shares on the secondary market, and you may receive more or less than NAV when you sell those shares.
• Authorized Participants. Only Authorized Participants may engage in creation or redemption transactions directly with the fund. The fund has a limited number of financial institutions that may act as Authorized Participants. The fund’s Authorized Participants are not obligated to engage in creation or redemption transactions. To the extent that the fund’s Authorized Participants are unable to or choose not to proceed with creation and/or redemption transactions with respect to the fund and no other Authorized Participants step forward to engage in creation or redemption transactions with the fund, the fund’s ETF shares may trade at a discount to NAV and possibly face trading halts and/or delisting.