- What does VLTCX invest in?
- This economical index fund aims to track a broad market of long-term corporate bonds. Its holdings consist primarily of U.S. dollar-denominated, investment-grade, fixed-rate, taxable debt instruments issued by industrial, utility, and financial sector companies, all with maturities extending beyond ten years. A significant risk arises from the high sensitivity of long-duration bonds to interest rate changes; thus, an increase in rates could diminish the value of the underlying portfolio bonds, thereby reducing the fund's share price. This offering is well-suited for investors seeking consistent interest income who also possess a high tolerance for substantial market value volatility.
- What is the expense ratio of VLTCX?
- Vanguard Long-Term Corporate Bond Index Fund Admiral Shares (VLTCX) charges an expense ratio of 0.06%. This is the annual fee deducted from fund assets to cover management and operations.
- What is VLTCX's dividend yield?
- VLTCX's trailing-twelve-month yield is 6.16%, calculated from the sum of dividends over the past year divided by the current price.
- What is the duration of VLTCX?
- Effective duration measures VLTCX's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VLTCX's current duration is published on the fund's factsheet on the issuer's website.
- What is the credit quality of VLTCX?
- VLTCX'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 VLTCX?
- Yield to maturity (YTM) is the total return you'd earn from VLTCX if every bond in the portfolio is held to maturity at the current price. VLTCX'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.
