VCLT - Why I Expect VCLT To Underperform During The Second Half Of The Year

Overview

The Vanguard Long-Term Corporate Bond ETF (VCLT) is an ETF that invests primarily in investment-grade corporate bonds with above-average exposure to interest rates. The ETF is a passively managed fund that seeks to track the Bloomberg Barclays U.S 10+ Year Corporate Bond Index. The fund has a yield to maturity of ~4.4% and a low expense ratio as one would expect with a Vanguard managed fund at 0.07%, which equates to a net yield of ~4.3%. With a 4.3% yield and an average effective maturity of a little under 24 years, the

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