VCLT - Vanguard Long-Term Corporate Bond ETF: Likely To Remain Strong But Concentration And Duration Risks Exist
Vanguard's Long-Term Corporate Bond ETF (VCLT) is a passive portfolio of investment-grade corporate bonds and seeks to track the Bloomberg Barclays US 10+ Year Corporate Bond Index. VCLT represents the cheapest way to get broad exposure to the long-term investment-grade corporate bond market, but there are strong reasons why income investors should hedge their exposure to VCLT.
VCLT's characteristics
Since VCLT is a portfolio of long-term bonds, the fund has significant exposure to interest rate changes. It obtains its 4.4% yield to maturity by having an average effective maturity of 23.8 years and