Vanguard VCF ETF (ASX:VCF)

Vanguard International Credit Securities Index (Hedged) Fund ETF

Global

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 & Poors 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

3.5

-3.31

0.63

3.51

3.93

Data Current To: 31/01/2024

Our review of VCF ETF

Diversified global portfolio with good mix of government and corporate bonds

Largely investment grade portfolio with a weighted average single A credit quality, a 35.2% exposure to the BBB range and 1.7% not rated as at 31 January 2024

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 6,800 holdings as at 31 December 2023

Globally diversified as well with the largest allocation to the US at 38.1%, followed by Canada at 8.6% and Supranational 8.3%

Things to be aware of about the VCF ETF

Long weighted average maturity of nine years as at 31 December 2023

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

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 6,800 investments across more than 1,900 issuers.

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 $152.4m (AUD) as of 31/01/2024.

What are the number of holdings in the VCF ETF?

Total number of holdings in VCF is 6950 as of 31/01/2024.

What are the management fees for the VCF ETF?

The annual management fees for the VCF ETF are 0.3% 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.