VCLT

📎 Investment Objective

The Vanguard Long-Term Corporate Bond ETF seeks to track the performance of a market-weighted corporate bond index with a long-term maturity focus.

✨ Key Features

• Focuses on long-term investment-grade corporate bonds with maturities over 10 years
• Provides broad exposure to the long-term corporate bond market
• Passively tracks a market-weighted index to minimize costs
• Low expense ratio of 0.00%

⚠️ Primary Risks

• Interest rate risk: The fund's value may decline when interest rates rise
• Credit risk: The fund is exposed to the risk of default by the underlying corporate bond issuers
• Liquidity risk: Reduced liquidity in the corporate bond market may impact the fund's ability to sell holdings
• Concentration risk: The fund's focus on long-term corporate bonds makes it more susceptible to risks in that specific segment of the bond market

👤 Best For

The Vanguard Long-Term Corporate Bond ETF may be suitable for investors seeking exposure to the long-term corporate bond market as part of a diversified fixed-income allocation. It may be appropriate for investors with a longer investment horizon who can tolerate the higher interest rate and credit risks associated with long-term corporate bonds.