Tue, 30 Aug 2016
Silver-rated Vanguard Intermediate-Term Investment Grade features a longtime manager, conservative strategy, and rock-bottom fees.
Brian Moriarty: Vanguard Intermediate-Term Investment Grade is a compelling choice for investors looking to round out their bond fund portfolio. This corporate bond fund, which has a Morningstar Analyst Rating of Silver, is distinguished by its longtime manager, conservative strategy, and rock-bottom fees.
Manager Greg Nassour has been involved in the operation of this fund for nearly 20 years and was named the lead manager in 2008. He also leads Vanguard's corporate bond team and is involved in the management of a number of other funds.
The fund's portfolio offers high quality, defensive bonds. It has less than 1% invested in junk bonds and also has a chunk of assets in U.S. Treasuries, which help to provide liquidity and keep the credit quality of the fund higher than the average peer.
In typical Vanguard fashion, the fund offers rock-bottom fees. The Admiral share class charges 10 basis points, while the Investor share class only charges 20 basis points. Both fees are below the category average and are even competitive with ETF options.
Taken together, the fund offers a compelling and conservative choice for a bond fund investor's portfolio.