VTC: The power of 3 in 1

November 9, 2017

 
VTC

 

Vanguard Total Corporate Bond ETF (VTC) offers low-cost, broad exposure to the investment-grade U.S. corporate bond market in one ETF.* As an ETF of ETFs, VTC gains exposure to the full range of corporate bond maturities by investing in our three existing corporate bond ETFs. VTC provides investors with the opportunity to capture the risk premium associated with corporate credit without the complexity and costs of managing multiple duration products.

 Vanguard Total Corporate Bond ETF (VTC)

Objective

Seeks to track the performance of a broad, market-weighted corporate bond index.

Investment approach
  • Broad, diversified exposure to the investment-grade U.S. corporate bond market.
  • Unique ETF of ETFs structure.
  • Intermediate-duration portfolio, with exposure to short-, intermediate-, and long-term maturities.
  • Seeks to provide current income with high credit quality.
About the benchmark

The Bloomberg Barclays U.S. Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. The index includes U.S. dollar-denominated securities that are publicly issued by industrial, utility, and financial issuers.

See for yourself

Our Compare products tool makes it easy to evaluate the costs and characteristics of VTC compared with the costs and characteristics of non-Vanguard funds.

Learn more about VTC

The resources below will give you more information about Vanguard Total Corporate Bond ETF.

News

Vanguard adds a new ETF to its "total" product lineup
This article outlines some basic information on VTC, including product design, benchmark, and expense ratio.

Advisor literature

Vanguard Total Corporate Bond ETF (VTC) pdf secure
The product overview outlines how VTC offers easy access to the total corporate market as an ETF of ETFs. You will also find details on the product's benchmark characteristics.

Advisor literature

Competitive comparison: Vanguard Total Corporate Bond ETF (VTC) pdf secure
A product comparison brochure that details how VTC and its benchmark stack up against iShares' iBoxx $ Investment Grade Corporate Bond ETF (LQD), a similar offering in the marketplace, and its benchmark.

Research paper

The case for low-cost index fund investing pdf
This paper reviews low-cost index fund investing and why Vanguard expects indexing to maintain its levels of success and popularity for the foreseeable future.

*Investment-grade fixed income securities are those rated the equivalent of Baa3 and above by Moody's or another independent rating agency.

Notes:

  • All investing is subject to risk including the possible loss of principal.
  • Diversification does not ensure a profit or protect against loss.
  • Investments in bonds are subject to interest rate, credit, and inflation risk.
  • Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.
 

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