The fund seeks to track the return (income and capital appreciation) of the Bloomberg AusBond Composite 0+ Yr Index before taking into account fund fees and expenses. The Vanguard Australian Fixed Interest Index ETF invests in a diversified portfolio of around 360 securities (bonds) issued by the Commonwealth Government of Australia, State Government authorities and treasury corporations, as well as investment-grade corporate issuers with a credit rating of BBB- or higher (by S&P or equivalent).