Vanguard rolled out a one-stop corporate bond ETF for investors to access corporate debt from the short to the long end of the yield curve.
Vanguard launched the Vanguard Total Corporate Bond ETF (NasdaqGM: VTC), which comes with a cheap 0.07% expense ratio.
The Total Corporate Bond ETF acts like a fund-of-funds and will try to reflect the performance of the Bloomberg Barclays U.S. Corporate Bond Index, which includes investment-grade, fixed-rate, taxable corporate bonds issued by industrial, utility and financial issuers.
The fund-of-funds holds three other Vanguard ETFs that track three different maturity ranges, including the Vanguard Short-Term Corporate Bond ETF (NYSEArca: VCSH), Vanguard Intermediate-Term Corporate Bond ETF (NYSEArca: VCIT) and Vanguard Long-Term Corporate Bond ETF (NYSEArca: VCLT).
“The Total Corporate Bond ETF provides investors with a core portfolio building block and is a welcome addition to Vanguard’s diversified lineup of low-cost bond ETFs,” John Hollyer, global head of Vanguard Fixed Income Group, said in a note.