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This ETF is designed to provide investors with a substantial and consistent flow of current income. Its portfolio primarily consists of high-quality, investment-grade corporate debt instruments. The fund targets an average maturity for its bond holdings, weighted by their market value, that typically falls within a range of ten to twenty-five years.

The Vanguard Long-Term Corporate Bond ETF is a fine idea for fixed income investors who want extra income. The Vanguard Long-Term Treasury ETF is an option for those who want to avoid credit risk.

Vanguard Long-Term Corporate Bond ETF and Vanguard Long-Term Treasury ETF both feature identical and highly efficient expense ratios of 0.03%. Vanguard Long-Term Corporate Bond ETF provides a higher trailing-12-month dividend yield of 5.60% compared to 4.60% for the Treasury fund.

iShares 10+ Year Investment Grade Corporate Bond ETF and Vanguard Long-Term Corporate Bond ETF both provide exposure to high-quality corporate debt with maturities exceeding 10 years Vanguard Long-Term Corporate Bond ETF carries a lower expense ratio and a higher trailing-12-month dividend yield than the iShares fund Both funds launched in 2009 and have experienced nearly identical maximum drawdowns of approximately 34% over the last five years

There is an old rule in lending that a name on the door is worth less than a claim on the cash. Bond investors who spent two years buying data-centre debt on the strength of the tenant rather than the structure are now relearning it.

The Vanguard Long-Term Bond ETF (NYSEARCA:BLV) is the kind of fund retirees gravitate toward: a long-duration, investment-grade bond index ETF that has paid a monthly distribution for 230 consecutive months since May 2007.