Why Vanguard’s New Bond ETF Works
Advisors should be aware that Vanguard just released its first broad corporate bond ETF. The ETF has an annual expense ratio of 0.07% and is structured in a unique way-it is an ETF of ETFs, as its tracks the performance of three of Vanguard's more narrow corporate bond ETFs. The new fund, if it gets approved by the SEC, will undercut iShares' most comparable ETF by almost half (that one has a 0.15% expense ratio).
FINSUM : In a market ever more dominated by esoteric new ETF offerings, Vanguard's straightforward low-cost approach looks attractive. Just be aware of the ever-present "liquidity gap" in bond ETFs.
- corporate bonds