Long-Term Corporate Bond Index Fund Admiral Shares (VLTCX)

Also available in 

more share classes

, including an 

ETF

.

Indexed to Barclays US 10+ Year Corp Index

  Fact sheet (12/31/2013)

Summary of this fund

Vanguard Long-Term Corporate Bond Index Fund seeks to track the performance of a market-weighted corporate bond index with a long-term dollar-weighted average maturity.

Investment approach

  • Seeks to track the performance of the Barclays U.S. 10+ Year Corporate Index.
  • Diversified exposure to the long-term investment-grade U.S. corporate bond market.
  • Follows a passively managed, index-sampling approach.
  • Provides current income with high credit quality.

About the benchmark

  • The Barclays U.S. 10+ Year Corporate Bond Index measures the investment return of U.S. dollar denominated, investment-grade, fixed rate, taxable securities issued by industrial, utility, and financial companies with maturities greater than 10 year.

PRICE AND DISTRIBUTIONS

Price and distributions

as of 04/15/2014

NAV

The market value of a mutual fund's total assets, minus liabilities, divided by the number of shares outstanding. The value of a single share is called its share value or share price.

Change $/%
$23.70
$0.09 positive change   0.38%
SEC yield

A non-money market fund's SEC yield is based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund's hypothetical annualized income, as a percentage of its assets. A security's income, for the purposes of this calculation, is based on the current market yield to maturity (in the case of bonds) or projected dividend yield (for stocks) of the fund's holdings over a trailing 30 day period. This hypothetical income will differ (at times, significantly) from the fund's actual experience; as a result, income distributions from the fund may be higher or lower than implied by the SEC yield.



The SEC yield for a money market fund is calculated by annualizing its daily income distributions for the previous seven days.

4.67% A

BASED ON HOLDINGS' YIELD TO MATURITY FOR PRIOR 30 DAYS;DISTRIBUTION MAY DIFFER

Distribution yield

The fund's current monthly income dividend per share, annualized (by dividing by the number of days in the month and multiplying by 365) as a percentage of the fund's average NAV during the month.

 as of —

KEY FUND FACTS

Key fund facts

Expense ratio
0.12% as of 12/20/2013
Lipper peer average
expense ratio
0.93% as of 12/31/2013
Designation
Long-Term Bond
Inception on
01/19/2010
Earliest share class
inception on
11/19/2009
Total net assets

This represents the total net assets for all share classes of Vanguard's U.S. funds that share the same investment strategy, management and holdings, but does not include any collective trusts sharing the same investment mandate.

$938.9 million as of 03/31/2014
Net assets for
VLTCX
 
$25.8 million as of 03/31/2014
Holdings 
1,265 as of 03/31/2014
Management style
Index
Benchmark
Barclays US 10+ Year Corp Index
Turnover rate 
 57.30%(Fiscal year-end  08/31/2013)

Fees and minimums

Fees and minimums

Purchase fee:

A fee charged by some mutual funds when an investor buys shares. This fee is not a sales charge or load because it is paid directly to the fund to offset the costs of trading certain securities.

1.00%

The fund assesses a 1.00% fee ($10.00 per $1,000) on purchases. The fee is paid directly to the fund and therefore is not considered a load.

Redemption fee:

A fee charged by some mutual funds when an investor sells shares. A redemption fee differs from a back-end load because the money is paid back into the fund. Many funds charge redemption fees only when shares are bought and then sold within a specific period of time, generally in an effort to discourage market-timing and short-term trading. Some brokers also charge their clients redemption fees for the sale of securities.

None
Minimum investment:
N/A

ETF Knowledge Center™   

STYLEBOX

Stylebox

Bond
Portfolio of high-quality, long-term corporate bonds.



Expected range
Central tendency

About our styleboxes  

Objective

Vanguard Long-Term Corporate Bond Index Fund seeks to track the performance of a market-weighted corporate bond index with a long-term dollar-weighted average maturity.

Investment approach

  • Seeks to track the performance of the Barclays U.S. 10+ Year Corporate Index.
  • Diversified exposure to the long-term investment-grade U.S. corporate bond market.
  • Follows a passively managed, index-sampling approach.
  • Provides current income with high credit quality.

About the benchmark

  • The Barclays U.S. 10+ Year Corporate Bond Index measures the investment return of U.S. dollar denominated, investment-grade, fixed rate, taxable securities issued by industrial, utility, and financial companies with maturities greater than 10 year.

Total returns

as of 03/31/2014

View as:

as of 03/31/2014

View as:
10%
8
6
4
2
0%
 
 
 
  YTD 1 year 5 year 10 year Since inception

01/19/2010

NAV 
6.68% 0.72% 8.63%
Benchmark

Barclays U.S. 10+ Year Corporate Index

*
6.17% 2.01%

Note: Fee adjusted for mutual funds where applicable.

* Includes U.S. dollar-denominated, investment-grade securities issued by industrial, utility, and financial companies, with maturities greater than 10 years.

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited.


Distribution by credit quality(% of fund) as of 03/31/2014

(% of fund) as of 03/31/2014
  Credit rating  VLTCX
U.S. Government 0.0%
Aaa 1.3%
Aa 6.8%
A 44.4%
Baa 47.5%
< Baa 0.0%
0%
50%
Total 100.0%
* Credit-quality ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). “NR” is used to classify securities for which a rating is not available. U.S. Treasury, U.S. Agency, and U.S. Agency mortgage-backed securities appear under “U.S. Government.” Credit-quality ratings for each issue are obtained from Barclays using ratings derived from Moody’s Investors Service, Fitch Ratings, and Standard & Poor’s. When ratings from all three agencies are available, the median rating is used. When ratings are available from two of the agencies, the lower rating is used. When one rating is available, that rating is used.

Fundamentals

Bondas of 03/31/2014 VLTCX Benchmark

Barclays U.S. 10+ Year Corporate Index

Number of bonds 1,265 1,426
Yield to maturity 4.83% 4.83%
Short-term reserves 1.37% N/A
Average duration 13.5 (years) 13.5 (years)
Average maturity 23.9 (years) 24.0 (years)
Average coupon 5.88% 5.88%

Risk and volatility as of 03/31/2014

as of 03/31/2014
  VLTCX Benchmark

Barclays U.S. 10+ Year Corporate Index

R-squared N/A 0.99
Beta N/A 1.02
Alpha 0.00 N/A
Standard deviation 9.03% 8.78%
Sharpe ratio 1.03 1.04

Risk and volatility are based on the share class with the earliest inception date.

Risk measures are calculated from trailing 36-month fund returns relative to the associated benchmarks.

An investment in the fund could lose money over short or even long periods. You should expect the fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall bond market. The fund’s performance could be hurt by:

  • Interest rate risk: The chance that bond prices overall will decline because of rising interest rates. Interest rate risk should be high for the fund because it invests primarily in long-term bonds, whose prices are much more sensitive to interest rate changes than are the prices of short-term bonds.
  • Credit risk: The chance that a bond issuer will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline.
  • Income risk: The chance that the fund’s income will decline because of falling interest rates.
  • Index sampling risk: The chance that the securities selected for the fund, in the aggregate, will not provide investment performance matching that of the index. Index sampling risk for the fund should be low.



© 1995–2014 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, distributor. Your use of this site signifies that you accept our terms & conditions of use.