Vanguard VCF ETF (ASX:VCF)

Vanguard International Credit Securities Index (Hedged) Fund ETF

About the VCF ETF

Vanguard International Credit Securities Index (Hedged) Fund ETF VCF seeks to track the return of the Bloomberg Barclays Global Aggregate Corporate and Government-Related Scaled Index hedged into Australian dollars before taking into account fees, expenses and tax.

The ETF provides low-cost exposure to high-quality, income-generating securities issued by government-owned entities, government-guaranteed entities and investment-grade corporate issuers from around the world. The investments in the ETF are predominantly rated investment grade by Standard & Poor’s or equivalent ratings agency.

The ETF is hedged to Australian dollars so the value of the ETF is relatively unaffected by currency fluctuations.

VCF ETF Performance Review

1
Year

1.52

3
Year

4.96

5
Year

3.47

Since
Inception

4.47

Running
Yield

2.43

Yield To
Maturity

1.26

Data Current To: 31/08/2021

Our review of VCF ETF

Diversified global portfolio with good mix of government and corporate bonds

Practically all investment grade with a weighted average credit quality of A and a 38% exposure to the BBB range as at 31 August 2021.

The ETF invests in fixed rate bonds and is exposed to interest rate risk

What we like about the VCF ETF

Hedged to AUD

Diversified portfolio with over 5,500 holdings as at 31 August 2021

Things to be aware of about the VCF ETF

Long weighted average maturity of 10 years

The fund does not show the split between fixed, floating and inflation linked bonds

VCF ETF Investment Strategy

Vanguard International Credit Securities Index (Hedged) ETF seeks to track the return of the Bloomberg Global Aggregate Corporate and Government-Related Scaled Index hedged into Australian dollars before taking into account fees, expenses and tax

VCF ETF Share Price

What does the VCF ETF Invest In?

VCF is a Multi Sector ETF.

VCF ETF has more than $200 million invested in the Vanguard International Credit Securities Index Fund (hedged). The underlying fund commenced in 2001 and holds more than 6,000 investments across more than 1,800 issuers.
The fund has most of its exposure to industrial and financial businesses and most investments are rated A or BBB.

VCF ETF Credit Quality

The average credit quality of the VCF ETF is A.

A detailed breakdown of the credit quality is expressed below.

VCF Frequently Asked Questions

What index does the VCF ETF aim to replicate?

The VCF ETF aims to replicate the Bloomberg Global Aggregate Corporate and Government-Related Scaled Index.

How often does VCF ETF pay distributions?

The distribution frequency of VCF is Quarterly.

When did the VCF ETF start?

The inception date of the VCF ETF was 04/12/2015.

What are the net assets of the VCF ETF?

VCF has net assets of $207.5m (AUD) as of 31/08/2021.

What are the number of holdings in the VCF ETF?

Total number of holdings in VCF is 5656 as of 31/08/2021.

What are the management fees for the VCF ETF?

The annual management fees for the VCF ETF are 0.30% p.a. Learn more about ETF fees in this article.

How can I invest in the VCF ETF?

VCF is an Exchange Traded Fund, and units may be bought or sold on the ASX like shares. Learn how to buy and sell ETFs in this article.

Does the VCF ETF have a minimum investment amount?

No, there is no minimum to invest in the Vanguard VCF ETF. Exchange Traded Funds in general do not have a minimum investment amount required by the issuer. However, if you choose to invest through a broker, they may choose to set their own minimum investment amount.

Are there any performance fees associated with the VCF ETF?

No, VCF has no performance fee. This is one of the advantages of Exchange Traded Funds, as they are traded like shares, you’ll generally only pay a commission to buy or sell units and an ongoing management fee.

VCF ETF News

About The Issuer Of The VCF ETF: Vanguard

Vanguard Investments was founded in 1975 and manages AUD$8.7 trillion in assets globally, and is entirely client-owned.

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Luke is the Chief Technical Officer of Fixed Income News Australia and responsible for website design and development, fund finder functionality, and is the producer of the Fixated podcast. Luke is Head of Marketing at communications, content and creative agency RGC Media & Mktng, MBA News Australia and Online MBA Australia. Luke has worked for ASX-listed industry leaders and a variety of marketing agencies across Australia. He holds a Diploma of Creative Arts and is Google Accredited.