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The Vanguard Long-Term Corporate Bond ETF (VCLT) is an exchange-traded fund that seeks to track the performance of an index composed of long-term U.S. corporate bonds. The ETF is managed by Vanguard Group Inc. and trades under the ticker VCLT on the NASDAQ.
Classified as an international fixed-income ETF, VCLT aims to reflect, before fees and expenses, the performance of the securities that make up its benchmark index. To achieve this objective, the fund employs a passive management strategy, maintaining a portfolio that seeks to replicate the composition and weighting of the index.
VCLT’s benchmark index consists of investment-grade corporate bonds with long-term maturities, weighted by market value. The index undergoes periodic reviews for inclusion, exclusion, and rebalancing, reflecting conditions in the U.S. corporate credit market.
Diversification and sector exposure
VCLT provides exposure to the U.S. corporate bond market, with a focus on higher credit quality issuers. Sector diversification includes bonds issued by companies operating in areas such as:
Financials
Industrials
Information technology
Communication services
Consumer sectors
Energy
This composition allows the ETF to reflect the aggregate performance of the long-term corporate credit market, with sensitivity to economic cycles and interest rate movements.
Structure and costs
Shares of VCLT are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).
The fund features a low expense ratio, typical of Vanguard’s passively managed ETFs, and does not charge a performance fee. VCLT has a single share class and trades exclusively under the ticker VCLT.
History and evolution of the ETF
The VanguardLong-Term Corporate Bond ETF was launched in 2009, amid the expansion of fixed-income ETFs and growing demand for vehicles providing exposure to long-duration corporate credit.
Since its inception, VCLT has been used by institutional and individual investors to access the U.S. long-term corporate bond market, maintaining a consistent focus on replicating its benchmark index.
Between 2020 and 2024, the ETF reflected conditions in the U.S. corporate bond market during a period marked by monetary policy shifts, changes in long-term interest rates, and fluctuations in credit spreads.
