- What does VCOBX invest in?
- This actively managed fund aims to provide extensive exposure, primarily within the U.S. investment-grade fixed income market. It stands out for its low expense ratio and allocates capital to various U.S. Treasury, mortgage-backed, and corporate securities. These holdings span a range of yields and maturities, encompassing short-term, intermediate-term, and long-term issues. Employing a disciplined, risk-conscious approach, the fund endeavors to surpass the performance of the broader investment-grade market. This is achieved through careful security selection, strategic sector allocation, and, to a lesser extent, decisions regarding duration. As with other bond investments, this fund is susceptible to interest rate fluctuations; an uptick in rates can depress the value of its underlying bonds, thereby reducing the fund's net asset value. Given its comprehensive coverage across all major segments and maturity profiles of the investment-grade fixed income landscape, investors might consider this fund a foundational component of their bond allocation. It's important to note that the Vanguard Core Bond Fund is a distinct offering from the Vanguard Core Bond ETF (VCRB). Differences in fund size, specific investment methodologies, and actual portfolio holdings are anticipated to lead to varying investment outcomes between the two.
- What is the expense ratio of VCOBX?
- Vanguard Core Bond Fund Admiral Shares (VCOBX) charges an expense ratio of 0.10%. This is the annual fee deducted from fund assets to cover management and operations.
- What is VCOBX's dividend yield?
- VCOBX's trailing-twelve-month yield is 4.80%, calculated from the sum of dividends over the past year divided by the current price.
- What is the duration of VCOBX?
- Effective duration measures VCOBX's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VCOBX's current duration is published on the fund's factsheet on the issuer's website.
- What is the credit quality of VCOBX?
- VCOBX'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 VCOBX?
- Yield to maturity (YTM) is the total return you'd earn from VCOBX if every bond in the portfolio is held to maturity at the current price. VCOBX'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.
