Vanguard Long-Term Investment-Grade Fund Investor Shares

Frequently Asked Questions About VWESX

What does VWESX invest in?

This fund offers broad investment in a diverse selection of medium- and high-quality, investment-grade corporate bonds, typically holding those with an extended average maturity of 15 to 25 years. Its portfolio is primarily composed of corporate debt instruments, supplemented by a modest allocation to taxable municipal bonds, all adhering to this long-term maturity profile. A principal risk for this offering is its susceptibility to interest rate fluctuations; an increase in rates could devalue its underlying bonds, consequently impacting the fund's share price. Investors should be aware that longer-duration bonds are particularly sensitive to such interest rate changes. This fund may appeal to those seeking steady interest income who are also prepared to accept substantial interest rate risk.

What is the expense ratio of VWESX?

Vanguard Long-Term Investment-Grade Fund Investor Shares (VWESX) charges an expense ratio of 0.20%. This is the annual fee deducted from fund assets to cover management and operations.

What is VWESX's dividend yield?

VWESX's trailing-twelve-month yield is 5.41%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of VWESX?

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

What is the credit quality of VWESX?

VWESX'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 VWESX?

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