The recently passed tax reform legislation could be a boost for investment-grade corporate bonds.

“Because investment-grade companies have been paying effective rates that are higher than the new corporate rate of 21%, and many high-yield companies pay little or no tax, we expect the former to fare better under the new law,” Stuart Hosansky, senior analyst for taxable securities in the Fixed Income Group at Vanguard, according to a report in Investopedia.

VTC has a 30-day SEC yield 3.28% and an average effective duration of 7.44 years.

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