Vanguard Core Bond ETF

Frequently Asked Questions About VCRB

What does VCRB invest in?

The Vanguard Core Bond ETF is an actively managed fund meticulously crafted to deliver broad exposure, primarily within the U.S. investment-grade fixed income landscape. This cost-efficient offering strategically invests in a diverse array of U.S. Treasury, mortgage-backed, and corporate debt instruments, spanning a full spectrum of yields and maturities, from short-term to long-term issues. Utilizing a disciplined and risk-aware approach, the fund aims to outperform the broader investment-grade market through astute security selection, informed sector allocation, and, to a lesser extent, duration management. Consistent with other fixed-income investments, it is susceptible to interest rate risk; an increase in rates could diminish the value of the portfolio's bonds, thereby reducing the fund's Net Asset Value (NAV). Due to its comprehensive coverage of all major segments and maturities within the investment-grade market, investors may consider it a central component of their bond holdings. It's crucial to understand that this Core Bond ETF is a standalone product, distinct from the Vanguard Core Bond Fund (VCOBX and VCORX). Differences in their operational scope, specific investment methodologies, and underlying assets are anticipated to result in varying investment returns between the two funds.

What is the expense ratio of VCRB?

Vanguard Core Bond ETF (VCRB) charges an expense ratio of 0.10%. This is the annual fee deducted from fund assets to cover management and operations.

What is VCRB's dividend yield?

VCRB'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 VCRB?

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

What is the credit quality of VCRB?

VCRB'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 VCRB?

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