The Vanguard USD Corporate Bond UCITS ETF (USD) Accumulating (VDPA) is an Ireland-domiciled fixed-income ETF managed by Vanguard and traded in U.S. dollars on the London Stock Exchange.

The fund seeks to track the performance of the Bloomberg Global Aggregate Corporate – United States Dollar Index, a benchmark composed of fixed-rate corporate bonds denominated in U.S. dollars.

VDPA provides exposure to the U.S. dollar-denominated corporate credit market, covering bonds issued by companies across different countries and sectors. It operates under the UCITS framework and follows an accumulating income policy.

The Bloomberg Global Aggregate Corporate – United States Dollar Index is designed to represent a broad range of fixed-rate corporate bonds denominated in U.S. dollars. Bonds included in the benchmark have maturities greater than one year and are generally investment grade.

Composition / Exposure Profile

VDPA holds corporate bonds across several areas of the economy, including:

• Financials.

• Industrials.

• Utilities.

• Communications.

• Consumer cyclicals.

• Consumer non-cyclicals.

• Energy.

Although all securities in the benchmark are denominated in U.S. dollars, issuers are not necessarily limited to the United States. The fund can therefore provide exposure to both U.S. and international companies accessing the U.S. dollar-denominated corporate bond market.

The portfolio is diversified across different issuers, sectors, and maturities. As a corporate credit strategy, its performance is influenced by factors such as U.S. interest rates, credit spreads, and changes in the perceived creditworthiness of issuers.

Structure and Costs

VDPA trades in U.S. dollars on the London Stock Exchange. The same accumulating share class trades in British pounds on the LSE under the VCPA ticker and also has other international listings. The fund's base currency is the U.S. dollar.

The ETF has an ongoing charges figure of 0.07% per year and uses physical replication through sampling. It is domiciled in Ireland, operates under the UCITS framework, and is part of Vanguard Funds PLC.

VDPA is an accumulating share class, meaning interest and other income generated by its holdings are reinvested within the fund rather than distributed periodically to shareholders.

History and Evolution of the ETF

The Vanguard USD Corporate Bond UCITS ETF (USD) Accumulating (VDPA) was launched in 2019 to provide diversified exposure to U.S. dollar-denominated corporate bonds.

Since its launch, the fund has maintained a passive strategy linked to the Bloomberg Global Aggregate Corporate – United States Dollar Index, providing exposure across different corporate issuers, sectors, and maturities.

Throughout its history, the fund's performance has reflected conditions in the U.S. dollar-denominated corporate credit market, including changes in U.S. interest rates, credit spreads, and the perceived creditworthiness of issuers.

Additional Information

Vanguard USD Corporate Bond UCITS ETF (USD) Accumulating (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $2.70 billion.

Over the past 12 months, Vanguard USD Corporate Bond UCITS ETF (USD) Accumulating recorded a return of -2.40%, with its price trading between $59.23 and $62.09 during the same period.

The ETF is traded under the ticker VDPA.