Vanguard EUR Corporate Bond

ETF description

This ETF provides investors with exposure to a diversified portfolio of investment‑grade corporate bonds denominated in euros. By tracking the Bloomberg Euro Corporate Bond index, this ETF includes bonds issued by a wide range of European companies, offering a blend of credit quality and sectoral diversification. The ETF aims to deliver stable income through regular interest payments while seeking to preserve capital by focusing on high‑quality corporate debt. It is designed for investors looking to gain access to the European corporate bond market with a focus on euro‑denominated securities, providing a balance between income generation and risk management.

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 EUR Corporate Bond index offers targeted exposure to a diverse selection of corporate bonds issued in euros. This index includes high‑quality debt securities from a range of corporations, providing investors with opportunities for stable income and potential capital appreciation. By focusing on euro‑denominated corporate bonds, the index aims to reflect the performance of investment‑grade corporate debt within the eurozone, balancing yield potential with credit risk. Its broad coverage of various sectors and industries helps to mitigate concentration risk and enhance diversification. The EUR Corporate Bond index is a valuable addition for portfolios seeking to blend income generation with investment in well‑rated corporate issuers, while benefiting from the stability of the euro currency.