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Why Vanguard’s New Bond ETF Works

Why Vanguard's New Bond ETF Works

(New York)

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.

  • vanguard
  • Blackrock
  • bonds
  • corporate bonds
  • etf

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Bonds