Vanguard Launches Low-Cost U.S. High-Yield Corporate Bond ETF

Vanguard has launched the Vanguard U.S. High-Yield Corporate Bond Index ETF (VCHY), providing broad exposure to U.S. dollar-denominated below-investment-grade corporate bonds. The ETF tracks the Bloomberg U.S. Corporate High Yield 250MM 2% Issuer Capped Index and seeks to offer diversified high-yield bond exposure while limiting issuer concentration. With a 0.05% expense ratio, Vanguard says VCHY matches the lowest-cost offering in its category, expanding the firm's fixed income ETF lineup with a low-cost income-focused solution.