Vanguard Commodity Strategy Fund Admiral Shares

Frequently Asked Questions About VCMDX

What does VCMDX invest in?

The Vanguard Commodity Strategy Fund Admiral Shares is designed to offer investors a dual benefit: safeguarding against inflationary pressures and enhancing the diversification of traditional stock and bond portfolios. To achieve this, the fund primarily invests in commodity-linked derivative instruments. Its objective is to optimize inflation protection while striving to outperform its specific benchmark and mitigate long-term volatility within a broadly diversified investment strategy. This commodity exposure is strategically underpinned by a blend of short-term Treasury Inflation-Protected Securities (TIPS) and Treasury bills (T-bills).

What is the expense ratio of VCMDX?

Vanguard Commodity Strategy Fund Admiral Shares (VCMDX) charges an expense ratio of 0.16%. This is the annual fee deducted from fund assets to cover management and operations.

What is VCMDX's dividend yield?

VCMDX's trailing-twelve-month yield is 11.91%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VCMDX?

Effective duration measures VCMDX's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VCMDX's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of VCMDX?

VCMDX'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 VCMDX?

Yield to maturity (YTM) is the total return you'd earn from VCMDX if every bond in the portfolio is held to maturity at the current price. VCMDX'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.