Tonita sells VCLT 85.91: For investors that get free trading on the ETF, it is even better because it would be easier to handle rebalancing to take advantage of the diversification benefits that the long-term bond portfolio can bring to a portfolio.

Having so much concentration on the risk factors would be a problem if the investor only held VCLT, but very specific exposure can be a desirable factor when an investor is trying to figure out how to fit the bond ETF into their portfolio. In my estimate, VCLT is a very solid bond ETF that is at its best when it is combined with other bond ETFs to create the bond portion of a portfolio. Because the credit risk and effective maturity are both heavily focused on specific parts of the curve, there is a meaningful amount of diversifiable risk left in the holdings. However, we are seeing quite a bit of concentration here as well. The average effective maturity is 24 years.


Tennie:
The yield gives investors a reason to take on the interest rate risk.

Marquita:
For the investor with a long-term horizon, a small allocation here makes sense.

Marya:
This would be a dangerous holding for an investor with a fairly short time horizon.

Phyliss:
With that said, I have to admit that the duration is fairly long and I'd really like to see stronger yields when taking on this level of duration risk.

Vania:
Given my distaste for high expense ratios, it should be no surprise that Vanguard products would be appealing.

Mahalia:
The Vanguard Long-Term Corporate Bond Index ETF (NASDAQ: VCLT ) is a solid bond fund.

Candis:
The low expense ratio is respectable.

Kenia:
The ideal exposure for bond investors would probably include other bond funds for more diversification on credit grades and durations.

Edythe:
I believe that geo-political factors are also playing a role in the global economic slowdown besides the point that leverage driven growth is likely to remain sluggish.

Kathyrn:
In conclusion, key global economic indicators indicate that there is more pain for the global economy in the coming months.

Long-Term Corp Bond Idx ETF Vanguard (NASDAQ:VCLT)
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