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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.

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