- What does VWEAX invest in?
- The Vanguard High-Yield Corporate Fund is an investment vehicle that primarily allocates capital to a diverse array of medium and lower-quality corporate debt, often colloquially known as "junk bonds." Established in 1978, its unique strategy focuses on carefully selecting what its advisors consider to be the higher-quality end of the high-yield spectrum. This selective approach aims to generate a consistent stream of income for investors while striving to mitigate the risks of defaults and capital erosion. Crucially, despite being a bond fund, the inherent nature of high-yield debt means its price movements can exhibit volatility comparable to that of equity markets. As such, it can serve as a complementary component within an already well-diversified investment portfolio. It's important to understand that this fund operates as a distinct and standalone product, separate from the Vanguard High-Yield Active ETF (VGHY). Variances in operational scale, the appointed investment sub-advisors, specific portfolio management processes, and the underlying securities held are expected to result in differing investment performance between the two offerings.
- What is the expense ratio of VWEAX?
- Vanguard High-Yield Corporate Fund Admiral Shares (VWEAX) charges an expense ratio of 0.12%. This is the annual fee deducted from fund assets to cover management and operations.
- What is VWEAX's dividend yield?
- VWEAX's trailing-twelve-month yield is 6.40%, calculated from the sum of dividends over the past year divided by the current price.
- What is the duration of VWEAX?
- Effective duration measures VWEAX's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VWEAX's current duration is published on the fund's factsheet on the issuer's website.
- What is the credit quality of VWEAX?
- VWEAX'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 VWEAX?
- Yield to maturity (YTM) is the total return you'd earn from VWEAX if every bond in the portfolio is held to maturity at the current price. VWEAX'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.
