Patience Needed for This Interest-Rate-Sensitive Bond Fund
Silver-rated Vanguard Long-Term Investment-Grade's significant interest-rate sensitivity means the fund can lag its peers as rates rise.
Beth Foos: Vanguard Long-Term Investment-Grade's strong record, experienced team, and low expenses earn it a Morningstar Analyst Rating of Silver.
This fund is one of the most interest-rate-sensitive options in Morningstar's corporate-bond category, but that's by design. The fund's manager, Scott St. John, keeps the portfolio's duration within one year of its long index and maintains a focus on bonds with an investment-grade ratings. His team at subadvisor Wellington Management Company combines broad market views with bottom up research to find value on the long end of the yield curve.
Elizabeth Foos does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.