The Vanguard Long-Term Corporate Bond ETF (VCLT) is a passively managed fund with $8.70 billion in assets under management. VCLT seeks to provide a high level of current income by investing primarily in investment-grade corporate bonds with a dollar-weighted average maturity between 10 and 25 years. With an expense ratio of just 0.03%, VCLT offers an exceptionally low-cost way to access a portfolio of long-term corporate bonds, distinguishing itself through its focus on high-quality debt and extended maturity profile.
The Vanguard Long-Term Corporate Bond ETF (VCLT) is a passively managed fund with $8.70 billion in assets under management. VCLT seeks to provide a high level of current income by investing primarily in investment-grade corporate bonds with a dollar-weighted average maturity between 10 and 25 years. With an expense ratio of just 0.03%, VCLT offers an exceptionally low-cost way to access a portfolio of long-term corporate bonds, distinguishing itself through its focus on high-quality debt and extended maturity profile.
ETF Overview
Seeks to provide a high and sustainable level of current income. Invests primarily in high-quality (investment-grade) corporate bonds. Maintains a dollar-weighted average maturity of 10 to 25 years.
VCLT aims to deliver current income by investing in a diversified portfolio of investment-grade corporate bonds. The ETF maintains a dollar-weighted average maturity between 10 and 25 years, making it sensitive to interest rate movements. VCLT's portfolio consists of 257 holdings, primarily U.S. based, with 91.1% exposure. Canada represents 2.2%, United Kingdom 1.9%, Singapore 0.7% and Japan 0.5%. The fund's sector allocation is heavily weighted towards Cash & Others, representing 100.0% of the portfolio. This focus on long-term, investment-grade corporate bonds makes VCLT suitable for investors seeking a steady stream of income and willing to accept interest rate risk. VCLT differentiates itself from broader bond ETFs by focusing specifically on the corporate bond sector and maintaining a longer average maturity, potentially leading to higher yields but also greater volatility.
Risk Metrics
VCLT carries interest rate risk due to its focus on long-term bonds; rising interest rates could negatively impact its NAV. With a 3-year beta of 1.96, VCLT exhibits higher volatility compared to the overall market. While the fund invests in investment-grade bonds, credit risk remains a factor, as issuers could potentially default on their debt obligations. The ETF's expense ratio of 0.03% helps to minimize expense drag, but investors should still consider the impact of inflation on real returns. The sector allocation shows 100% in Cash & Others, which could indicate a temporary defensive position or a unique classification within the fund's holdings, but it's important to acknowledge this concentration. Past performance does not guarantee future results.
VCLT, or the Vanguard Long-Term Corporate Bond ETF, is an exchange-traded fund that seeks to provide a high and sustainable level of current income. It achieves this by investing primarily in high-quality, investment-grade corporate bonds. The fund maintains a dollar-weighted average maturity of 10 to 25 years, making it sensitive to changes in interest rates. VCLT's portfolio consists of 257 holdings, providing diversification within the corporate bond market. As of 2026-03-15, VCLT has $8.70 billion in assets under management and a dividend yield of 5.41%.
What is the expense ratio for VCLT?
The expense ratio for VCLT is 0.03%. This means that for every $10,000 invested in the fund, investors will pay $3 in annual fees. This is significantly lower than the average expense ratio for similar core investment grade bond ETFs, which is around 0.44%. VCLT's low expense ratio makes it a cost-effective option for investors seeking exposure to long-term corporate bonds.
What are the top holdings in VCLT?
While specific holdings data fluctuates, VCLT's portfolio consists of 257 corporate bonds. The fund's investment strategy focuses on maintaining a diversified portfolio of investment-grade corporate bonds. As the fund invests in a variety of corporate bonds, the specific top holdings will vary based on market conditions and the fund's investment decisions. Investors can find the most up-to-date list of holdings on the Vanguard website or other financial data providers.
Is VCLT a good long-term investment?
VCLT can be a suitable long-term investment for investors seeking income from corporate bonds and willing to accept interest rate risk. The fund's focus on investment-grade bonds provides a degree of stability, while its long-term maturity profile can lead to higher yields. However, investors should be aware that VCLT's NAV can be sensitive to changes in interest rates. With a 3-year beta of 1.96, VCLT exhibits higher volatility compared to the overall market. Past performance does not guarantee future results.
How does VCLT compare to similar ETFs?
VCLT distinguishes itself through its focus on long-term investment-grade corporate bonds and its exceptionally low expense ratio of 0.03%. Compared to other corporate bond ETFs, VCLT's longer average maturity may result in higher yields but also greater interest rate sensitivity. Some competing ETFs may focus on shorter-term bonds or have a broader mandate that includes government bonds. VCLT's AUM of $8.70 billion indicates its popularity among investors seeking exposure to this specific segment of the bond market.
Does VCLT pay dividends?
Yes, VCLT pays dividends. As of 2026-03-15, VCLT has a dividend yield of 5.41%. The dividend yield represents the annual dividend payment as a percentage of the fund's current NAV. VCLT's focus on investment-grade corporate bonds aims to generate a steady stream of income for its investors, which is then distributed as dividends. The actual dividend amount may vary over time depending on market conditions and the performance of the underlying bonds.