August Ratings Activity Features a Pair of Vanguard Funds
There were a handful of upgrades and downgrades, and five newly rated Morningstar Medalists.
Morningstar Manager Research analysts upgraded the Morningstar Analyst Ratings of three funds in August and downgraded two. We initiated coverage on five funds, all now Morningstar Medalists. Some notable changes are highlighted here; a complete list can be found in the table below.
Vanguard High-Yield Corporate (VWEHX) is one of the lowest-cost ways--including exchange-traded funds--to invest in high-yield bonds. It is actively managed by an experienced team led by Michael Hong and backed by the considerable analytic resources of Wellington Management Company. This is a relatively conservative fund that focuses on the higher-quality end of the junk-bond spectrum. That makes it more sensitive to Treasury yields than most in its group, which hurt when yields spiked in 2013 but gave the fund a big boost in 2014. The fund is competitive over the longer term, and an increase to Positive for the Performance Pillar in addition to its other strengths have moved it to a Silver Analyst Rating from Bronze.
Laura Lallos does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.