Still, this Vanguard mutual fund yields 3.42%, more than what investors get on the S&P 500 or 10-year Treasuries. Michael L. Hong, CFA, Senior Managing Director and Fixed Income Portfolio Manager of Wellington Management. That would mean about 6.5% of the $6.1 trillion U.S. investment-grade corporate market and nearly 14% of the $2.9 trillion BBB market. Vanguard High-Yield Corporate Fund seeks to provide ahigh level of current income. Quote Fund Analysis Performance Risk Price Portfolio People Parent All Funds by Classification ... High Yield Bond Funds ; When necessary, we may change a category assignment based on recent changes to the portfolio. The best-performing high-yield corporate bond fund, based on performance over the past year, is the Metropolitan West High Yield Bond Fund (MWHYX). Expense ratio: 0.23% per year, or $23 on a $10,000 investment. The majority of the 93 holdings in this Vanguard mutual fund are dollar-denominated, but the fund has the flexibility to hold some bonds in local currencies. We place funds in a given category based on their portfolio statistics and compositions over the past three years. After slumping last year, VHDYX is up 4.53% this year. Vanguard estimates that as much as $400 billion worth of BBB bonds could be at risk of downgrade to high-yield in the United States as a result of the pandemic, depending on the path of economic recovery. to a narrower average yield spread for corporate bonds versus Treasuries. Vanguard Corporate Bond ETFs seek to track the wide spectrum of debt securities issued by companies. That includes Vanguard’s various offerings that qualify as high-yield funds. Analyze the Fund Vanguard High-Yield Corporate Fund Investor Shares having Symbol VWEHX for type mutual-funds and perform research on other mutual funds. Here are some of the best Vanguard mutual funds for income-seeking investors. The Vanguard High-Yield Corporate Fund … The top 10 holdings in VHDYX combine for 27% of the fund’s weight, and some of those stocks have some of the longest dividend increase streaks in Corporate America. This fund is the only actively managed fund on this list, managed by Wellington Management Company, which manages many of Vanguard's actively managed mutual funds.This fund held 469 bonds at the time of writing, and had a mandate to invest at least 80% of its assets in corporate bonds that have a junk bond rating or lower (a rating below Baa by Moody's). The company currently does not offer a junk-bond ETF, so investors looking for high-yield corporate bond exposure via a Vanguard mutual fund should turn to the Vanguard High-Yield Corporate Fund — Investor Shares (MUTF:VWEHX). As seasoned bond investors know, the longer a bond’s term, the more interest rate risk incurred. Bonds can be investment grade as well as lower-quality junk or high-yield debt. The company currently does not offer a junk-bond … Vanguard High-Yield Corporate Bond Fund (VWEHX) Vanguard's High-Yield Corporate Bond Fund takes on more risk than a typical bond mutual fund by investing in debt securities that are considered below investment grade. 1 Either way, a weaker dollar could be a positive catalyst for this Vanguard mutual fund in 2019. 1125 N. Charles St, Baltimore, MD 21201. All rights reserved. Vanguard mutual funds span scores of assets classes — including several corners of the fixed income universe, domestic stocks and foreign equities — presenting investors with multiple options for boosting their portfolios’ income profiles. The Vanguard is widely known as the investment firm that launched the index fund movement. Expense ratio: 0.15% per year, or $15 on a $10,000 investment. He has worked in investment management with Wellington Management since 1997 and has managed the Portfolio since 2008. It invests at least 80% of its assets in corporate bonds that are rated below Baa by Moody's Investors Service, Inc. (Moody's); have an equivalent rating by any other independent bond-rating agency; or, if unrated, are determined to be of comparable quality by the fund's advisor. Vanguard High-Yield Corporate Fund seeks to provide ahigh level of current income. VWEHX: Vanguard High Yield Corporate Fund - Fund Performance Chart. Its Admiral share class (ticker: VWEAX; minimum investment: $50,000) has an … Those are the lowest rated junk bonds. A 12.30% allocation to energy-sector debt indicates this Vanguard mutual fund could have some sensitivity to oil prices, but that energy exposure is slightly below the category average. But investors are compensated for that risk with a yield of around 4.50%. Financial services and healthcare stocks combine for a third of the fund’s weight. While the investment objective stated in a fund's prospectus may or may not reflect how the fund actually invests, the Morningstar category is assigned based on the underlying securities in each portfolio. All rights reserved. It invests at least 80% of its assets in corporate bonds that are rated below Baa by Moody's Investors Service, Inc. (Moody's); have an equivalent rating by any other independent bond-rating agency; or, if unrated, are determined to be of comparable quality by the fund's advisor. Among junk bond funds, VWEHX has a lengthy track record — it debuted 41 years ago. Fund facts: Vanguard High-Yield Corporate Fund invests in a diversified portfolio of medium- and lower-quality corporate bonds, often referred to as “junk bonds.” Created in 1978, this fund seeks to purchase what the advisor considers higher-rated junk bonds. © 2020 Verizon Media. Over 85% of VWESX’s holdings have maturities of either 10 to 20 years or 20 to 30 years. But Vanguard offers several avenues for tapping into investment-grade corporate debt. The SEC Yield for VWAHX is 2.87 percent and the expense ratio is just 0.19 percent, or $19 for every … Learn more about mutual funds at fidelity.com. Currency in USD. Vanguard High-Yield Tax-Exempt (): If you're looking for high yields and you want to minimize taxable income with a low-cost, no-load mutual fund, VWAHX may be the best fit for your needs.The portfolio consists of more than 2,000 municipal bonds, which are tax-free at the federal level. Vanguard High-Yield Corporate Fund Investor Shares (VWEHX) Nasdaq - Nasdaq Delayed Price. Get the lastest Fund Performance for Vanguard High Yield Corporate Fund from Zacks Investment Research Morningstar categories help investors and investment professionals make meaningful comparisons between funds. The bulk of VEMBX’s holdings carry investment-grade ratings, but many of those bonds are rated at the lower ends of the investment-grade spectrum. investment, market cap and category. investment, market cap and category. Vanguard High-Yield Corporate Fund Admiral Shares Return BeforeTaxes 15.91% 5.79% 7.20% Comparative Indexes (reflect no deduction for fees, expenses, or taxes) Bloomberg Barclays U.S. Corporate HighYield Bond Index 14.32% 6.13% 7.57% High-Yield Corporate … Benchmark High-Yield Corporate Composite Idx Growth of a $10,000 investment: January 31, 2010— December 31, 2019 $19,883 Fund as of 12/31/19 $19,703 Benchmark as of 12/31/19 Annual returns There is another perk with this Vanguard mutual fund: relatively low exposure to BBB-rated corporate bonds. The Vanguard High-Yield Corporate Fund falls within Morningstar’s high-yield bond category. “The fund’s emphasis on slower-growing, higher-yielding companies can also mean that its total return may not be as strong in a significant bull market.”. For yield-minded investors with long-term time horizons, the Vanguard Long-Term Investment-Grade Fund — Investor Shares (MUTF:VWESX) is a Vanguard mutual fund to consider. Dec. 18, 2020, China’s Consumer Data Is Signaling a Sell for Nio Stock, 3 Hydrogen Stocks to Buy for the $11 Trillion Breakout, 7 Growth Stocks You Don’t Want to Sleep On, 5 Cheap Stocks With Great-Performing Companies. Tip: Try a valid symbol or a specific company name for relevant results, Nasdaq - Nasdaq Delayed Price. But that risk is rewarded with higher yields. It invests at least 80% of its assets in corporate bonds that are rated below Baa by Moody's Investors Service, Inc. (Moody's); have an equivalent rating by any other independent bond-rating agency; or, if unrated, are determined to be of comparable quality by the fund's advisor. Given its expansive lineup of ETFs, index funds and mutual funds, Vanguard has something for every investor and most of those funds come with low fees. Copyright © 2020 InvestorPlace Media, LLC. Like the other Vanguard mutual funds highlighted here, the Vanguard Equity Income Fund — Investor Shares (MUTF:VEIPX) requires a minimum investment of $3,000. quotes delayed at least 15 minutes, all others at least 20 minutes. VWEHX | A complete Vanguard High-Yield Corporate Fund;Investor mutual fund overview by MarketWatch. The Fund seeks to track the performance of a broad, market-weighted corporate bond index. The Pennsylvania-based fund giant is also the second-largest U.S. issuer of ETFs and widely viewed as one of the fund industry’s low-cost leaders. 7 Christmas Stocks to Buy for Happy Holidays, Louis Navellier and the InvestorPlace Research Staff, Matt McCall and the InvestorPlace Research Staff, What Did the Stock Market Do? Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. View & analyze the VWEAX fund chart by total assets, risk rating, Min. Find real-time VWEHX - Vanguard High-Yield Corporate Fund Investor Shares stock quotes, company profile, news and forecasts from CNN Business. Find the latest Vanguard High Yield Corporate F (VWEHX) stock quote, history, news and other vital information to help you with your stock trading and investing. This Vanguard mutual fund holds 466 junk bonds and has an average duration of 4.4 years, which is lower than the durations found on some high-yield corporate ETFs. VEIPX is home to 187 domestic large caps with a median market value of $103.3 billion. The Vanguard High Dividend Yield Index Fund — Investor Shares (MUTF:VHDYX) is a Vanguard mutual fund for investors looking to focus on dividend-paying stocks with penchants for sporting above-average yields. All figures are as of April 14, 2020. If the fund is new and has no portfolio history, we estimate where it will fall before giving it a more permanent category assignment. View mutual fund news, mutual fund market and mutual fund interest rates. Todd Shriber does not own any of the aforementioned securities. While VHDYX aims to be a high-dividend play, its exposure to the higher-yielding consumer staples, real estate and utilities sectors is just 21.40% and the fund actually features no real estate exposure. VWEHX tends to be more conservatively managed than other high-yield bond funds, as he notes that the credit quality leans a … The Morningstar Category is shown next to the Morningstar Style Box which identifies a fund's investment focus, based on the underlying securities in the fund. Article printed from InvestorPlace Media, https://investorplace.com/2019/01/5-high-yield-vanguard-mutual-funds/. Only one open-end, or mutual, fund makes the list of low-cost products: Vanguard High-Yield Corporate. The categories make it easier to build well-diversified portfolios, assess potential risk, and identify top-performing funds. • Returns of the funds in this report ranged from 5.79% for Investor Shares of Vanguard Short-Term Investment-Grade Fund to 23.43% for Admiral Shares of Vanguard Long-Term Investment-Grade Fund. If you're already a Vanguard client: Call 800-888-3751. Vanguard High-Yield Corporate Inv VWEHX ... 2020. The funds’ results compared with those of their benchmarks were mixed. Currency in USD ... Category High Yield Bond. Expense ratio: 0.60% per year, or $60 on a $10,000 investment. While this Vanguard mutual fund is a dividend play, its combined weight of 22.10% to the higher-yielding consumer staples, real estate and utilities sectors is not excessive relative to other high dividend strategies. ... by the government or one of its agencies have the best "creditworthiness" and a lower chance of default than most corporate bonds. Fund Family Vanguard… Nasdaq Yahoo partners with Morningstar a leading market research and investment data group to help investors rate and compare funds on Yahoo Finance. 2020 InvestorPlace Media, LLC. * The fund, which is the industry's third largest high-yield corporate bond fund and holds $16.9 billion in net assets, has experienced cash flow totalling $2 … View & analyze the VWEHX fund chart by total assets, risk rating, Min. Investors are piling into bond funds as 2020 winds down. VWEHX’s weight to highly speculative CCC-rated debt is 8%. After slumping last year, emerging markets bonds are rallying to start 2019 as fixed income market observers expect the Federal Reserve’s pace of interest rate hikes to slow and the dollar to weaken. Expense ratio: 0.26% per year, or $26 on a $10,000 investment. Vanguard Total Bond Market Index Fund holds more than 5,000 domestic investment-grade bonds. Vanguard is known for its passively managed funds, but VWEHX is an actively managed mutual fund, Rosenbluth says. Copyright © However, the fund attempts to … All rights reserved. Benchmark High-Yield Corporate Composite Idx Growth of a $10,000 investment: January 31, 2010— December 31, 2019 $19,685 Fund as of 12/31/19 $19,703 Benchmark as of 12/31/19 Annual returns market, as measured by the Bloomberg Barclays U.S. Corporate High-Yield Index (+4.60%), outperformed the Treasury and taxable bond markets. 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