Vanguard Establishes Total Corporate Bond ETF
Vanguard has filed a preliminary registration statement with the Securities and Exchange Commission (SEC) for a new index portfolio. The Vanguard Total Corporate Bond Exchange Traded Fund (ETF) is expected to launch in the fourth quarter of 2017 and will offer investors access to the entire U.S. investment-grade corporate bond market through a single fund.
“The new offering complements our existing lineup of total market funds and will provide investors with low-cost, broadly diversified exposure to the U.S. investment-grade corporate bond market,” says John Hollyer, global head of Vanguard Fixed Income Group.
Vanguard further describes the new ETF: “The fund will be structured as an ETF of ETFs, investing directly in three existing, low-cost ETFs: Vanguard Short-Term Corporate Bond ETF (VCSH), Vanguard Intermediate-Term Corporate Bond ETF (VCIT), and Vanguard Long-Term Corporate Bond ETF (VCLT). This approach enables the Total Corporate Bond ETF to achieve immediate scale by using existing exposure from the underlying ETFs, and it is expected to result in tighter bid/ask spreads and lower operating expenses than investing directly in the benchmark’s constituents.”
Vanguard estimates an expense ratio of 0.07% upon the ETF’s launch. Through its fixed income group, Vanguard will serve as the investment adviser to the ETF.
NEXT: Capstone Financial Launches New Crossmark Global Investments Brand
Capstone Financial Launches New Crossmark Global Investments Brand
Independent asset management firm Capstone Financial Services has adopted Crossmark Global Investments (Crossmark) as its new brand name.
"We are excited to launch the Crossmark brand, which embodies our long-standing commitment to responsible investing and differentiates our philosophy in the investment marketplace," says the firm's President and CEO Michael Kern. "At Crossmark, we believe strongly that investment portfolios can align with clients' personal values without sacrificing performance."
The investment team specializes in delivering screened solutions for a variety of responsible investing themes.