Investment products


Diversify your investment and generate income with a less risky alternative to stocks.

We have an extensive selection of fixed income investments.

What are bonds?

Bonds are loans you make to a government, government agency, or corporation, which they use to finance projects and other needs. The bond issuer agrees to repay you at a fixed interest rate by a specified date, or maturity.

View bond FAQs

Benefits of investing in bonds

Work toward a goal

Save for a goal, like a house or tuition. Or consider bonds if you're looking for fixed income in retirement.

Gain targeted exposure

Focus on a specific credit quality or maturity. Or get exposure to a specific state, corporate issuer, or industry.

Get potential tax advantages

Potentially earn income with tax advantages. Depending on the issuer, some bonds can generate federal and state tax-exempt earnings.

Invest in hundreds of bonds with just one fund

Diversify your portfolio without worrying about investing in and managing multiple individual securities. You can choose from more than 100 Vanguard bond funds or a variety of bond funds of your choice.

Types of bonds

U.S. Treasuries

Direct debt obligations backed by the full faith and credit of the U.S. government.

  • High liquidity
  • $1,000 denominations

Federally taxed. Generally exempt from state tax.

Government agency bonds

Debt obligations issued by U.S. government agencies.

  • High liquidity
  • $1,000 denominations

Federally and state taxed

Municipal bonds

Issued by states and other municipalities.

  • Variable liquidity
  • $5,000 denominations

Generally exempt from federal and state taxes. May also be exempt from local taxes.

Corporate bonds

Issued by companies, and their credit risk ranges over the whole spectrum.

  • Generally higher yields than other bond types
  • $1,000 denominations or $5,000 denominations

Subject to federal, state, and local taxes

New issues are purchased directly from the issuer.

Investment minimum:

Most bonds: $1,000, with additional purchases in increments of $1,000.

All fixed income trades are subject to dealer minimums.

Commission: $0

Secondary trades are purchased from other people who are selling their bonds.

Investment minimum:

Most bonds: $1,000, with additional purchases in increments of $1,000.

Municipal bonds: $5,000 with additional purchases in increments of $5,000.

All fixed income trades are subject to dealer minimums.

Commission: $1 per $1,000 face amount ($250 maximum)

Note: Vanguard Brokerage charges an additional $25 broker-assisted fee for secondary trades placed over the phone. See the commission & fee schedules for exclusions

How do bonds work?

How to buy bonds at Vanguard

How to buy bonds at Vanguard

Want to learn more?

Investing on your own?

Check out key information you can use as you begin your DIY investing journey.

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Investing for life events

Strategies for investing in individual bonds
Using certain strategies can help you achieve your investing goals, provide you with an income stream, and minimize risk.
Are bonds a good investment right now?
Learn how high-quality bonds can play a valuable role in your portfolio in a high-yield environment.

Frequently asked questions

For more information about Vanguard funds, visit to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.

Bond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that bond to decline.

Investments in bonds are subject to interest rate, credit, and inflation risk.

While U.S. Treasury or government agency securities provide substantial protection against credit risk, they do not protect investors against price changes due to changing interest rates. The market values of government securities are not guaranteed and may fluctuate but these securities are guaranteed as to the timely payment of principal and interest.

Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax.