Vanguard Long-Term Corporate Bond ETF

VCLT

Market cap $7.66B

Ocean Park Asset Management sold 342,600 shares of VCLT in the fourth quarter. The shares had previously been worth about $26.60 million.

Vanguard is a favorite for many investors, thanks to its wide portfolio of index funds with very low expenses.

VCLT offers broad exposure to long-term investment-grade corporate bonds with a 0.03% expense ratio and a 5.5% yield to maturity. VCLT's performance closely tracks its benchmark, making outperformance unlikely due to its diversified 2,400-bond portfolio and minimal fees. Selective bond picking, such as GL.PR.D from Globe Life can deliver higher yields - 6.7% YTM for BBB+ credit - than VCLT's average.

Dow Chemical increased its VCLT holding by 51,571 shares in the third quarter. The overall value of the VCLT position increased by $4.47 million from the previous period.

VCLT charges a lower expense ratio and offers a higher dividend yield than LQD VCLT's long-duration bond focus means greater risk and deeper drawdowns compared to LQD LQD holds a much broader set of bonds, while VCLT tilts toward financial and healthcare sectors These 10 Stocks Could Mint the Next Wave of Millionaires ›

VCLT charges a lower expense ratio and offers a higher yield than LQD LQD has outperformed VCLT over the past year and experienced a smaller five-year drawdown VCLT holds far fewer bonds, with sector tilts and an ESG screen, while LQD is much broader These 10 Stocks Could Mint the Next Wave of Millionaires ›

More rate cuts are forecasted for 2026, which could bring further tightening in credit spreads for fixed income investors pondering whether they should opt for corporate bond options for added yield in lieu of or alongside Treasuries exposure.

VCLT charges a much lower expense ratio and offers a higher yield than TLT. VCLT has experienced smaller drawdowns and lower volatility, but its holdings are concentrated in corporate rather than Treasury bonds.

ETFs can provide diversification because they provide exposure to a basket of stocks. But with a high-yield ETF, it's essential to understand what it owns and its level of risk.

Corporate bonds typically appeal to those seeking higher yield potential relative to safer government debt, but current market uncertainty may keep fixed income investors from making the move. However, strong fundamentals are also underpinning corporate bonds, which only add to their appeal despite ongoing risks.