ETF Evaluator: Vanguard U.S. High-Yield Corp Bd Idx ETF () Follow This ETF

Vanguard U.S. High-Yield Corp Bd Idx ETF Overview

Vanguard U.S. High-Yield Corp Bd Idx ETF (VCHY) is a passively managed Taxable Bond High Yield Bond exchange-traded fund (ETF). Vanguard launched the ETF in 2026.

The investment seeks to track the performance of a U.S. dollar-denominated, below investment-grade corporate bond index. The fund employs an indexing investment approach designed to track the performance of the Bloomberg U.S. High Yield 250MM 2% Issuer Capped Index, which measures the performance of U.S. dollar-denominated, high-yield, fixed-rate corporate bonds, including international U.S. dollar-denominated bonds, that have an amount outstanding, or par value, of at least $250 million; are rated high-yield (Ba1/BB+/BB+ or below) using the middle rating of Moody’s, S&P, and Fitch; and have remaining maturities of at least one year.

About Vanguard U.S. High-Yield Corp Bd Idx ETF (VCHY)

There are 2 members of the management team with an average tenure of 0.16 years: Joshua Barrickman (2026) and Manuel Hayes (2026). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: Bloomberg US HY 250MM 2% Isr Cap TR USD index with a weighting of 100%. Vanguard U.S. High-Yield Corp Bd Idx ETF has 1785 securities in its portfolio. The top 10 holdings constitute 3.2% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Vanguard U.S. High-Yield Corp Bd Idx ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. Vanguard U.S. High-Yield Corp Bd Idx ETF has 12.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 98.9% (86.1% domestic bond, 12.8% foreign bond and 0.0% convertible bond). Vanguard U.S. High-Yield Corp Bd Idx ETF has 1.1% of the portfolio in cash.

Assets Under Management

The fund has $52 million in total assets, which is below the $1 billion average for the High Yield Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

VCHY Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard U.S. High-Yield Corp Bd Idx ETF expense ratio is low compared to funds in the High Yield Bond category. Vanguard U.S. High-Yield Corp Bd Idx ETF has an expense ratio of 0.05%, which is 87% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard U.S. High-Yield Corp Bd Idx ETF has a portfolio turnover rate of 0%, which indicates that it holds its assets around /years. By way of comparison, the average portfolio turnover is 69% for the High Yield Bond category.

Recently, in the month of July 2026, Vanguard U.S. High-Yield Corp Bd Idx ETF returned -0.2%, which earned it a grade of C, as the High Yield Bond category had an average return of -0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Vanguard U.S. High-Yield Corp Bd Idx ETF has a trailing yield of 0.00%, which is below the 6.77% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

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