From The Motley Fool · Jake Lerch · · 50s
Corporate Yield vs. Government Safety
VCLT offers 5.9% yield vs VGLT's 4.9% but with higher risk.
In brief
VCLT offers 5.9% yield vs VGLT's 4.9% but with higher risk. Vanguard Long-Term Corporate Bond ETF provides higher dividend yield than Treasury ETF but carries more credit risk. Originally reported by The Motley Fool.
Yield Comparison
VCLT offers 5.9% dividend yield versus VGLT's 4.9% yield.
Expense Ratios
Both funds share identical 0.03% expense ratios.
Risk Profile
VGLT has deeper max drawdown of 41.0% versus VCLT's 34.0% over five years.
Investment Strategy
VCLT holds 2,569 corporate bonds; VGLT holds 104 U.S. government obligations.
Performance History
VCLT delivered -17% total return over five years versus VGLT's -31%.
Yield Calculation
VCLT paid $4.16 per share over 12 months on $70.26 share price.
What to remember
Vanguard Long-Term Corporate Bond ETF provides higher dividend yield than Treasury ETF but carries more credit risk.
