VCEB
Vanguard ESG U.S. Corporate Bond ETF
📎 Investment Objective
The Vanguard ESG U.S. Corporate Bond ETF seeks to track the performance of a benchmark index that measures the investment-grade, U.S. dollar-denominated, taxable corporate bond market, while excluding bonds from companies involved in certain activities deemed inconsistent with ESG (environmental, social, and governance) principles.
Overview
ETF tracking Vanguard ESG U.S. Corporate Bond ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Vanguard ESG U.S. Corporate Bond ETF seeks to track the performance of a benchmark index that measures the investment-grade, U.S. dollar-denominated, taxable corporate bond market, while excluding bonds from companies involved in certain activities deemed inconsistent with ESG (environmental, social, and governance) principles.
🎯 Investment Strategy
The ETF employs a passively managed, full-replication approach, seeking to track the performance of the Bloomberg MSCI US Corporate SRI Select Index. The index includes U.S. corporate bonds that meet certain ESG criteria, as determined by MSCI's ESG research. The fund does not lend securities and has a low portfolio turnover rate.
✨ Key Features
- Provides exposure to investment-grade U.S. corporate bonds with a focus on ESG factors
- Tracks a benchmark index that screens out companies involved in certain activities deemed inconsistent with ESG principles
- Employs a passive, full-replication investment strategy to closely match the index performance
- Relatively low expense ratio compared to actively managed ESG bond funds
⚠️ Primary Risks
- Interest rate risk: The value of the fund's holdings may decline due to rising interest rates
- Credit risk: The possibility that a bond issuer will fail to make timely payments of interest and principal
- ESG screening risk: The fund's ESG screening criteria may exclude certain securities, which could underperform the broader bond market
- Liquidity risk: The potential difficulty in buying or selling certain bonds, especially during times of market stress
👤 Best For
The Vanguard ESG U.S. Corporate Bond ETF may be suitable for investors seeking exposure to investment-grade U.S. corporate bonds with a focus on ESG factors, as part of a diversified fixed-income portfolio. It may be particularly appealing to investors who prioritize sustainable and responsible investing principles.
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