Vanguard Eurozone Corporate Bonds

ETF description

This ETF invests in corporate bonds issued by companies across various sectors within the Eurozone. Corporate bonds are a form of debt that companies issue to raise funds, and they typically pay interest over a set period. The fund provides exposure to a diversified range of companies, offering investors the potential to earn income through interest payments. It invests in bonds with different maturities and credit ratings, helping to spread risk while focusing on generating stable returns.

This ETF may appeal to investors seeking higher income from bonds than what is typically available with government bonds while being comfortable with the additional risk that comes with corporate debt. It could suit those looking to diversify their bond holdings and add exposure to well‑established European companies.

Issuer details

Vanguard is the largest provider of mutual funds and the second‑largest provider of ETFs in the world.

Vanguard is a major American investment management company headquartered in Malvern, Pennsylvania. It’s known for being the largest provider of mutual funds in the world and the second‑largest provider of ETFs after BlackRock’s iShares with over $8trn in global assets under management (as at June 2024). Vanguard was founded in 1975 by John C. Bogle and is notable for its unique ownership structure ‑ it is owned by its funds, which in turn are owned by their shareholders. This structure is designed to align Vanguard’s interests with those of its investors, helping to keep costs low.

Index details

The Eurozone Corporate Bonds index provides investors with a focused and diversified exposure to investment‑grade corporate debt issued by companies within the Eurozone. By concentrating on high‑quality bonds from various sectors, the index balances yield potential with credit quality, making it an attractive option for those looking to enhance their fixed income portfolio.