Vanguard USD Corporate Bonds

ETF description

This ETF invests in U.S. corporate bonds, which are debt securities issued by companies to raise capital. Corporate bonds typically offer higher interest payments than government bonds, as they carry a slightly higher risk. The fund provides exposure to a wide range of industries and companies, offering investors the opportunity to earn regular income through the interest paid by these bonds. The bonds in the portfolio vary in maturity and credit quality, providing a diversified approach to corporate fixed‑income investments.

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 U.S. 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 USD Corporate Bonds index offers investors targeted exposure to investment‑grade corporate bonds denominated in U.S. dollars. By focusing on these bonds, the index provides a measure of performance that reflects the dynamics of short‑term corporate debt markets while emphasizing high credit quality.