- What does VBLAX invest in?
- VBLAX is an economical index fund designed to offer broad, diversified exposure to long-term, high-quality U.S. bonds, specifically those with maturities exceeding ten years. Its portfolio is structured to achieve this, allocating roughly 60% of its holdings to corporate bonds and 40% to U.S. government bonds, all within that extended maturity bracket. A significant inherent risk stems from the acute sensitivity of long-term bonds to interest rate shifts; consequently, a rise in interest rates could substantially decrease the value of the underlying bonds and, in turn, the fund's share price. This fund is best suited for individuals seeking consistent interest income who are also prepared to withstand considerable interest rate volatility.
- What is the expense ratio of VBLAX?
- Vanguard Long-Term Bond Index Fund Admiral Shares (VBLAX) charges an expense ratio of 0.06%. This is the annual fee deducted from fund assets to cover management and operations.
- What is VBLAX's dividend yield?
- VBLAX's trailing-twelve-month yield is 4.89%, calculated from the sum of dividends over the past year divided by the current price.
- What is the duration of VBLAX?
- Effective duration measures VBLAX's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VBLAX's current duration is published on the fund's factsheet on the issuer's website.
- What is the credit quality of VBLAX?
- VBLAX's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.
- What is the yield to maturity of VBLAX?
- Yield to maturity (YTM) is the total return you'd earn from VBLAX if every bond in the portfolio is held to maturity at the current price. VBLAX's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.
