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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.

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