Vanguard has filed a preliminary registration statement with the Securities and Exchange Commission to launch its first bond ETF covering the entire U.S. corporate investment-grade bond market.
The Vanguard Total Corporate Bond ETF will consist of three existing Vanguard bond ETFs: the Vanguard Short-Term Corporate Bond ETF (VCSH), Vanguard Intermediate-Term Corporate Bond ETF (VCIT), and Vanguard Long-Term Corporate Bond ETF (VCLT), and it will cost investors an estimated annual fee (expense ratio) of seven basis points.
(Related: Vanguard Plans 2 New Actively Managed Funds)
The fund is expected to launch in the fourth quarter, and it will be Vanguard’s first U.S. bond ETF launch since its Tax-Exempt Bond Index ETF (VTEB) was introduced in August 2015.
The new fund will also be Vanguard’s first U.S.-based ETF comprising multiple ETFs and offered as a single share class, but not its first ETF using that structure. The fund behemoth offers such single share class products in many international markets, beginning in Australia in 2009 and now including Canada, Europe and Hong Kong as well.