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ETF Specialist

This Bond Fund Provides Broad Diversification at a Low Cost

Silver-rated Vanguard Total Corporate Bond ETF is a compelling option.

Mentioned:

Vanguard Total Corporate Bond ETF (VTC) is a great choice for exposure to investment-grade corporate bonds. This market-value-weighted fund is one of the cheapest and best diversified in the corporate bond Morningstar Category, which makes it a compelling option. The fund earns a Morningstar Analyst Rating of Silver.

The fund tracks the Bloomberg Barclays U.S. Corporate Bond Index, which includes U.S. investment-grade corporate bonds with at least one year to maturity. Qualifying issues must be fixed-rate and have at least $300 million in outstanding face value. The index is market-value-weighted, which pulls the fund toward the largest and most liquid issues.

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Neal Kosciulek does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.