About VGCAX
Vanguard Global Credit Bond Fund Admiral Shares is a mutual fund focusing on global credit markets within the fixed income asset class. Its primary purpose is to provide a moderate and sustainable level of current income by investing at least 80% of its assets in a diverse array of debt securities, including both corporate and select non-corporate bonds, while generally excluding government-guaranteed instruments.
The fund stands out for its higher-than-average credit quality, with a portfolio average rating of 'A', notably better than the typical peer rating of 'BBB'. Only a small portion, around 3%, is allocated to non-investment grade holdings, reflecting a conservative credit risk profile and moderate interest rate sensitivity. Geographically, the holdings span global issuers in sectors such as financials, industrials, and supranationals.
The fund’s competitive advantage lies in its low net expense ratio of 0.25%, among the lowest in its category, which can help enhance long-term net returns. With an effective duration around 5.8 years and a trailing twelve-month yield of approximately 4.45%, the fund serves a role in portfolio diversification and income generation for institutional and qualifying individual investors seeking global exposure to credit markets.
Fund Family Vanguard
Category Corporate Bond
Performance Rating Above Average
Risk Rating Below Average
Stock Exchange Nasdaq
Ticker Symbol VGCAX
Share Class Admiral Shares
Index Bloomberg Global Aggregate Credit TR USDH
VGCAX had a total return of -0.29% in the past year, including dividends. Since the fund's
inception, the average annual return has been 3.54%.
