Average Daily Volume
3.03M
Fund Overview
The Vanguard Long-Term Corporate Bond ETF (VCLT) seeks to track the performance of the Bloomberg U.S. 10+ Year Corporate Bond Index, which measures the investment-grade, fixed-rate, taxable corporate bond market with maturities greater than 10 years. The ETF provides exposure to long-term corporate bonds, offering investors a way to gain income through higher yields typically associated with longer-duration debt. VCLT is designed for investors seeking steady income and who are willing to accept the higher interest rate risk associated with long-term bonds. The fund is passively managed, aiming to replicate the index's performance with low expense ratios, making it a cost-effective choice for long-term corporate bond exposure.
- Asset Class
-
Bond
- Industry
-
Corporate Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 5.80 %
- Currency Hedged
-
No
- Portfolio Turnover
-
33 %
- Dividend Date
-
Why Invest in the VCLT ETF?
Potential Benefits
- Provides exposure to long-term corporate bonds, which typically offer higher yields compared to short-term bonds.
- Low expense ratio (0.04% as of 2025), making it a cost-efficient option for fixed-income investors.
- Diversification across a broad range of investment-grade corporate issuers.
- Passive management strategy aims to closely track the index, reducing active management risks.
- Liquidity is high due to Vanguard's strong ETF structure and market presence.
Potential Risks
- Interest rate risk: Long-term bonds are highly sensitive to rising interest rates, which can lead to price declines.
- Credit risk: Although the bonds are investment-grade, there is still risk of issuer default or downgrade.
- Lower liquidity compared to government bonds, which may impact pricing during market stress.
- Inflation risk: Fixed coupon payments may lose purchasing power over time if inflation rises.
- Market volatility: Corporate bonds can experience price swings due to economic conditions or issuer-specific events.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.5%
|
+1.9%
|
-2.9%
|
+0.3%
|
+1.5%
|
+0.2%
|
-3.9%
|
+0.8%
|
-4.6%
|
+0.3%
|
-
|
-
|
| 2025 |
+0.4%
|
+3.4%
|
-1.4%
|
-1.4%
|
-0.1%
|
+3.0%
|
-0.2%
|
+0.7%
|
+3.3%
|
+0.1%
|
+0.8%
|
-1.5%
|
| 2024 |
-0.8%
|
-2.7%
|
+1.9%
|
-4.9%
|
+3.0%
|
+0.3%
|
+3.2%
|
+2.2%
|
+2.8%
|
-4.4%
|
+2.6%
|
-4.5%
|
| 2023 |
+7.7%
|
-5.8%
|
+4.6%
|
+0.7%
|
-2.9%
|
+1.8%
|
-0.3%
|
-2.0%
|
-5.4%
|
-4.1%
|
+11.2%
|
+6.8%
|
| 2022 |
-5.0%
|
-3.1%
|
-3.3%
|
-10.0%
|
+1.8%
|
-4.6%
|
+5.5%
|
-5.5%
|
-8.5%
|
-2.1%
|
+9.9%
|
-2.5%
|
| 2021 |
-2.8%
|
-3.4%
|
-2.5%
|
+1.6%
|
+0.7%
|
+4.0%
|
+2.2%
|
-0.4%
|
-2.2%
|
+1.7%
|
+0.4%
|
-0.8%
|
| 2020 |
+3.8%
|
+1.4%
|
-8.4%
|
+5.6%
|
+2.0%
|
+2.5%
|
+5.7%
|
-3.8%
|
-0.3%
|
-0.9%
|
+6.1%
|
-0.2%
|
| 2019 |
+4.0%
|
-0.5%
|
+4.5%
|
+0.2%
|
+2.4%
|
+4.3%
|
+0.9%
|
+5.7%
|
-1.1%
|
+0.3%
|
+1.0%
|
+0.2%
|
| 2018 |
-1.1%
|
-3.8%
|
+0.9%
|
-2.5%
|
+0.5%
|
-1.1%
|
+2.2%
|
-0.3%
|
-0.3%
|
-3.6%
|
-0.8%
|
+2.8%
|
| 2017 |
+0.1%
|
+1.8%
|
-0.6%
|
+1.2%
|
+2.5%
|
+1.2%
|
+0.8%
|
+1.2%
|
0.0%
|
+0.7%
|
+0.2%
|
+2.2%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: VCLT vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
VCLT employs a passive management strategy, aiming to track the Bloomberg U.S. 10+ Year Corporate Bond Index. This index includes U.S. dollar-denominated, investment-grade corporate bonds with remaining maturities greater than 10 years. The fund primarily holds these bonds in proportion to their weighting in the index, which is market-cap weighted. VCLT's portfolio is rebalanced periodically to align with index changes, typically due to bond maturities, new issuances, or credit rating changes. The fund does not use derivatives or leverage, focusing instead on physical replication of the index.
Frequently Asked Questions
What is the average maturity of bonds held in VCLT?
VCLT holds bonds with maturities greater than 10 years, with an average effective maturity typically around 20-25 years.
How often does VCLT pay dividends?
VCLT pays monthly dividends, consisting of interest income from its bond holdings.
Is VCLT appropriate for conservative investors?
While VCLT holds investment-grade bonds, its long duration makes it more suitable for investors comfortable with higher interest rate risk rather than very conservative investors.
Does VCLT hold any junk bonds?
No, VCLT exclusively holds investment-grade corporate bonds (rated BBB- or higher by major rating agencies).
How has VCLT performed during periods of rising interest rates?
Like all long-duration bond funds, VCLT typically experiences price declines when interest rates rise sharply, though the higher coupon payments can partially offset this over time.
Industry Overview
The Vanguard Long-Term Corporate Bond ETF (VCLT) is part of the fixed-income ETF market, specifically targeting long-duration corporate bonds. Investing in long-term corporate bonds can be attractive for income-focused investors seeking higher yields than government bonds or shorter-term corporate debt. However, this sector is more exposed to interest rate fluctuations and credit risk. VCLT provides a diversified, low-cost way to access this segment, which is often used for portfolio income generation or duration extension strategies. The ETF is particularly relevant in environments where investors expect stable or declining interest rates.
Alternative Comparison
Compared to similar ETFs like iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), VCLT has a longer duration focus, making it more sensitive to interest rate changes but potentially offering higher yields. Unlike LQD, which includes bonds with 5+ years to maturity, VCLT specifically targets 10+ year maturities. Another peer, the iShares Intermediate-Term Corporate Bond ETF (IGIB), has shorter duration exposure than VCLT, resulting in lower interest rate risk but also lower yield potential. VCLT's expense ratio (0.04%) is competitive with these alternatives, making it an attractive option for investors specifically seeking long-term corporate bond exposure.
Issuer Overview
Vanguard is one of the world's largest investment management companies, known for its low-cost index funds and ETFs. The firm has a strong reputation for investor-focused practices, including competitive fee structures and a commitment to passive investment strategies. Vanguard's fixed-income ETFs, including VCLT, are widely used by both individual and institutional investors for their transparency, liquidity, and cost efficiency.
Conclusion
VCLT offers investors a cost-effective way to gain exposure to long-term investment-grade corporate bonds, providing higher yield potential than shorter-duration alternatives. While the fund carries inherent interest rate and credit risks, its passive management approach and low fees make it a compelling choice for fixed-income investors with appropriate risk tolerance. As with all bond investments, investors should consider their interest rate outlook and overall portfolio objectives before investing in VCLT.
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