(VCPA) Vanguard USD Corporate Bond - Ratings and Ratios

The Vanguard USD Corporate Bond UCITS ETF USD Accumulation CHF is an exchange-traded fund (ETF) that tracks the Morningstar US Corp Bd TR USD index, providing investors with exposure to a diversified portfolio of USD-denominated corporate bonds. As a USD Corporate Bond ETF, it aims to capture the returns of the US corporate bond market.

With Assets Under Management (AUM) of approximately $2.73 billion CHF, the fund has a substantial presence in the market. The ETFs tracking of the Morningstar US Corp Bd TR USD index implies that it holds a broad range of investment-grade corporate bonds, potentially offering a relatively stable source of returns in the form of coupon payments and return of principal.

From a performance perspective, key metrics such as yield, duration, and credit quality are essential in evaluating the ETFs potential. While the exact yield is not provided, a USD corporate bond ETF typically offers a yield that reflects the overall credit quality and duration of the underlying bonds. The duration, a measure of interest rate sensitivity, is crucial in understanding the ETFs potential volatility in response to changes in interest rates.

To further assess the ETFs attractiveness, one could examine its expense ratio, trading volume, and bid-ask spread. A lower expense ratio is generally more favorable as it results in lower costs for investors. High trading volume and a tight bid-ask spread indicate liquidity, making it easier for investors to buy or sell shares without significantly affecting the price.

Given the ETFs characteristics, investors may use it as a core holding in a fixed income portfolio, potentially as a way to manage interest rate risk, credit risk, or as a source of regular income. The ETFs diversification across various corporate bonds can help mitigate issuer-specific risk, making it a potentially attractive option for those seeking broad exposure to the US corporate bond market.