Vanguard High-Yield Corporate Fund (VWEHX)
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This fund is rated by Morningstar as average risk with average return with 3 stars.. There are a total of 340 corporate bonds in this fund with $11.5 billion assets that had an annual return of 39.1% last year. The average maturities of these bonds are 6.3 years. The expense ratio is presently at 0.32% with a $3,000 minimum investment required that can be increased in $100 increments.
The volatility factors of this fund over the past three years are a beta at 1.38, an R-squared at 15 and a standard deviation of 17.71.
This is a fund that is cautious and has a long term outlook. There is very little activity in this fund since the management has a buy and hold mentality, which paid off last year with its best performance since its inception date back in December of 1978.
The categories of the bonds in this fund had a bad name and were called in the past, junk bonds. This fund does not rally as fast as others in its category, but it does not lose as quickly either. This one of the Vanguard funds investors can place their savings in for a slow long term positive result.
The Vanguard High-Yield Corporate Fund (VWEHX) is a great vehicle for a worker’s with IRA contribution for long term investment for their retirement.