Only 3% of Vanguard 401(k) contributions in 2024 went to bond funds, mainly the institutional Vanguard Total Bond Market Index Fund.

In 2024, just about 3% of Vanguard 401(k) contributions were allocated to dedicated bond funds, predominantly the institutional Vanguard Total Bond Market Index Fund (VTBIX). This fund serves as the default fixed-income option within many 401(k) plans, tracking a broad index of U.S. investment-grade bonds including Treasuries and high-grade corporates. It offers low fees and broad diversification but excludes junk bonds and inflation-protected securities. Despite recent challenges from rising interest rates, the fund remains a core choice for investors seeking stable, diversified bond exposure within retirement plans.