|
Investor
Shares |
Admiral
Shares |
Sales Charge
(Load) Imposed on Purchases |
|
|
Purchase
Fee |
|
|
Sales Charge
(Load) Imposed on Reinvested
Dividends |
|
|
Redemption
Fee |
|
|
Account
Service Fee Per Year
(for certain
fund account balances below $5,000,000) |
$ |
$ |
|
Investor
Shares |
Admiral
Shares |
Management
Fees |
% |
|
12b-1
Distribution Fee |
|
|
Other
Expenses |
% |
|
Total Annual
Fund Operating Expenses |
% |
|
|
1
Year |
3
Years |
5
Years |
10
Years |
Investor
Shares |
$ |
$ |
$ |
$ |
Admiral
Shares |
$ |
$ |
$ |
$ |
|
Total
Return |
Quarter |
|
% |
|
|
-
% |
|
|
1
Year |
5
Years |
10
Years |
Vanguard
High-Yield Corporate Fund Investor Shares |
|
|
|
Return Before
Taxes |
% |
% |
% |
Return After
Taxes on Distributions |
|
|
|
Return After
Taxes on Distributions and Sale of Fund Shares |
|
|
|
Vanguard
High-Yield Corporate Fund Admiral Shares |
|
|
|
Return Before
Taxes |
% |
% |
% |
High-Yield
Corporate Composite Index
(reflects no
deduction for fees, expenses, or taxes) |
% |
% |
% |
Bloomberg
U.S. Corporate High Yield Bond Index
(reflects no
deduction for fees, expenses, or taxes) |
|
|
|
Plain
Talk About Fund Expenses |
All mutual
funds have operating expenses. These expenses, which are
deducted
from a fund’s gross income, are expressed as a percentage of the
net assets
of the fund. Assuming that operating expenses remain as stated in
the Fees
and Expenses section, Vanguard High-Yield Corporate Fund’s
expense
ratios would be as follows: for Investor Shares, 0.22%, or $2.20 per
$1,000 of
average net assets; for Admiral Shares, 0.12%, or $1.20 per
$1,000 of
average net assets. The average expense ratio for high yield funds
in 2023
was 0.95%, or $9.50 per $1,000 of average net assets (derived from
data
provided by Lipper, a Thomson Reuters Company, which reports on the
mutual
fund industry). |
Plain
Talk About Costs of Investing |
Costs are
an important consideration in choosing a mutual fund. That is
because
you, as a shareholder, pay a proportionate share of the costs of
operating
a fund and any transaction costs incurred when the fund buys or
sells
securities, including costs generated by shareholders of other share
classes
offered by the fund. These costs can erode a substantial portion of
the gross
income or the capital appreciation a fund achieves. Even
seemingly
small differences in expenses can, over time, have a dramatic
effect on
a fund’s performance. |
Plain
Talk About High-Yield Bonds |
High-yield
bonds, or “junk bonds,” are issued by companies or other entities
whose
ability to pay interest and principal on the debt in a timely manner is
considered
questionable. Such bonds are rated “below investment-grade” by
independent
rating agencies and are considered speculative. Because they
have
greater credit risk than investment-grade bonds, similar maturity
high-yield
bonds typically must pay more interest to attract investors. Some
high-yield
bonds are issued by smaller, less-seasoned companies, while
others
are issued as part of a corporate restructuring, such as an acquisition,
a
merger, or a leveraged buyout. Some high-yield bonds were once rated as
investment-grade
but have been downgraded to junk bond status because of
financial
difficulties experienced by their issuers. Conversely, an issuer’s
improving
financial condition may result in an upgrading of its junk bonds to
investment-grade
status. |
Type
of Bond (Maturity) |
After
a 1%
Increase |
After
a 1%
Decrease |
After
a 2%
Increase |
After
a 2%
Decrease |
Short-Term
(2.5 years) |
$977 |
$1,024 |
$954 |
$1,049 |
Intermediate-Term
(10 years) |
922 |
1,086 |
851 |
1,180 |
Long-Term
(20 years) |
874 |
1,150 |
769 |
1,328 |
Plain
Talk About Bonds and Interest Rates |
As a rule,
when interest rates rise, bond prices fall. The opposite is also true:
bond
prices go up when interest rates fall. Why do bond prices and interest
rates move
in opposite directions? Let’s assume that you hold a bond
offering a
4% yield. A year later, interest rates are on the rise and bonds of
comparable
quality and maturity are offered with a 5% yield. With
higher-yielding
bonds available, you would have trouble selling your 4% bond
for the
price you paid—you would probably have to lower your asking price.
On the
other hand, if interest rates were falling and 3% bonds were being
offered,
you should be able to sell your 4% bond for more than you
paid. |
Plain
Talk About Bond Maturities |
A
bond is issued with a specific maturity date—the date when the issuer must
pay
back the bond’s principal (face value). Bond maturities range from less
than
1 year to more than 30 years. Typically, the longer a bond’s maturity, the
more
price risk you, as a bond investor, will face as interest rates rise—but
also
the higher the potential yield you could receive. Longer-term bonds are
generally
more suitable for investors willing to take a greater risk of price
fluctuations
to get higher and more stable interest income. Shorter-term bond
investors
should be willing to accept lower yields and greater income
variability
in return for less fluctuation in the value of their investment. The
stated
maturity of a bond may differ from the effective maturity of a bond,
which
takes into consideration that an action such as a call or refunding may
cause
bonds to be repaid before their stated maturity
dates. |
Plain
Talk About Callable Bonds |
Although
bonds are issued with clearly defined maturities, in some cases the
bond
issuer has a right to call in (redeem) the bond earlier than its maturity
date.
When a bond is called, the bondholder may have to replace it with
another
bond with a lower yield than the original bond. One way for bond
investors
to protect themselves against call risk is to purchase a bond early
in
its lifetime, long before its call date. Another way is to buy bonds with
lower
coupon
rates or interest rates, which make them less likely to be
called. |
Plain
Talk About Credit Quality |
A
bond’s credit quality rating is an assessment of the issuer’s ability to
pay
interest
on the bond and, ultimately, to repay the principal. The lower the
credit
quality, the greater the perceived chance that the bond issuer will
default,
or fail to meet its payment obligations. All things being equal, the
lower
a bond’s credit quality, the higher its yield should be to compensate
investors
for assuming additional risk. |
Credit
Quality |
Percentage
of Fund’s Net Assets1
|
Aaa |
7.9% |
Aa |
0.1 |
A |
0 |
Baa |
4.3 |
Ba |
38.7 |
B |
43.1 |
Caa |
4.2 |
Ca |
0 |
C |
0 |
NR |
1.7 |
Plain
Talk About Derivatives |
Derivatives
can take many forms. Some forms of derivatives—such as
exchange-traded
futures and options on securities, commodities, or
indexes—have
been trading on regulated exchanges for decades. These
types
of derivatives are standardized contracts that can easily be bought and
sold
and whose market values are determined and published daily. On the
other
hand, non-exchange-traded derivatives—such as certain swap
agreements
and foreign currency exchange forward contracts—tend to be
more
specialized or complex and may be more difficult to accurately
value.
|
Plain
Talk About Vanguard’s Unique Corporate Structure |
Vanguard
is owned jointly by the funds it oversees and thus indirectly by the
shareholders
in those funds. Most other mutual funds are operated by
management
companies that are owned by third parties—either public or
private
stockholders—and not by the funds they
serve. |
Plain
Talk About Distributions |
As
a shareholder, you are entitled to your portion of a fund’s income from
interest
and dividends as well as capital gains from the fund’s sale of
investments.
Income consists of both the dividends that the fund earns from
any
stock holdings and the interest it receives from any money market and
bond
investments. Capital gains are realized whenever the fund sells
securities
for higher prices than it paid for them. These capital gains are
either
short-term or long-term, depending on whether the fund held the
securities
for one year or less or for more than one
year. |
|
|
|
|
|
|
For a
Share Outstanding
Throughout
Each Period |
Year Ended January
31, | ||||
2024 |
2023 |
2022 |
2021 |
2020 | |
Net
Asset Value, Beginning of Period |
$5.30 |
$5.77 |
$5.96 |
$5.94 |
$5.67 |
Investment
Operations |
|
|
|
|
|
Net
Investment Income1 |
.299 |
.261 |
.238 |
.259 |
.302 |
Net
Realized and Unrealized Gain (Loss) on Investments |
.092 |
(.462) |
(.185) |
.034 |
.278 |
Total from
Investment Operations |
.391 |
(.201) |
.053 |
.293 |
.580 |
Distributions |
|
|
|
|
|
Dividends
from Net Investment Income |
(.311) |
(.269) |
(.243) |
(.273) |
(.310) |
Distributions
from Realized Capital Gains |
— |
— |
— |
— |
— |
Total
Distributions |
(.311) |
(.269) |
(.243) |
(.273) |
(.310) |
Net
Asset Value, End of Period |
$5.38 |
$5.30 |
$5.77 |
$5.96 |
$5.94 |
Total
Return2 |
7.71% |
-3.37% |
0.84% |
5.22% |
10.45% |
Ratios/Supplemental
Data |
|
|
|
|
|
Net
Assets, End of Period (Millions) |
$3,068 |
$3,041 |
$3,612 |
$3,877 |
$4,102 |
Ratio of
Total Expenses to Average Net Assets |
0.22%3 |
0.23%3 |
0.23% |
0.23% |
0.23% |
Ratio of
Net Investment Income to Average Net Assets |
5.73% |
4.90% |
4.00% |
4.51% |
5.16% |
Portfolio
Turnover Rate |
36% |
36% |
31% |
38% |
28% |
|
|
1 |
Calculated
based on average shares outstanding. |
2 |
Total returns
do not include account service fees that may have applied in the periods
shown.
Fund
prospectuses provide information about any applicable account service
fees. |
3 |
The ratio of
expenses to average net assets for the period net of reduction from
custody fee
offset
arrangements was 0.22% and 0.23%,
respectively. |
|
|
|
|
|
|
For a
Share Outstanding
Throughout
Each Period |
Year Ended January
31, | ||||
2024 |
2023 |
2022 |
2021 |
2020 | |
Net
Asset Value, Beginning of Period |
$5.30 |
$5.77 |
$5.96 |
$5.94 |
$5.67 |
Investment
Operations |
|
|
|
|
|
Net
Investment Income1 |
.304 |
.266 |
.244 |
.265 |
.308 |
Net
Realized and Unrealized Gain (Loss) on Investments |
.092 |
(.462) |
(.185) |
.033 |
.278 |
Total from
Investment Operations |
.396 |
(.196) |
.059 |
.298 |
.586 |
Distributions |
|
|
|
|
|
Dividends
from Net Investment Income |
(.316) |
(.274) |
(.249) |
(.278) |
(.316) |
Distributions
from Realized Capital Gains |
— |
— |
— |
— |
— |
Total
Distributions |
(.316) |
(.274) |
(.249) |
(.278) |
(.316) |
Net
Asset Value, End of Period |
$5.38 |
$5.30 |
$5.77 |
$5.96 |
$5.94 |
Total
Return2 |
7.82% |
-3.27% |
0.94% |
5.32% |
10.55% |
Ratios/Supplemental
Data |
|
|
|
|
|
Net
Assets, End of Period (Millions) |
$20,565 |
$20,573 |
$25,011 |
$24,798 |
$22,701 |
Ratio of
Total Expenses to Average Net Assets |
0.12%3 |
0.13%3 |
0.13% |
0.13% |
0.13% |
Ratio of
Net Investment Income to Average Net Assets |
5.83% |
5.00% |
4.10% |
4.60% |
5.26% |
Portfolio
Turnover Rate |
36% |
36% |
31% |
38% |
28% |
|
|
1 |
Calculated
based on average shares outstanding. |
2 |
Total returns
do not include account service fees that may have applied in the periods
shown.
Fund
prospectuses provide information about any applicable account service
fees. |
3 |
The ratio of
expenses to average net assets for the period net of reduction from
custody fee
offset
arrangements was 0.12% and 0.13%,
respectively. |
Web |
|
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Vanguard
Fund |
Inception
Date |
Newspaper
Abbreviation |
Vanguard
Fund
Number |
CUSIP
Number |
Vanguard
High-Yield Corporate Fund | ||||
Investor
Shares |
12/27/1978 |
HYCor |
29 |
922031208 |
Admiral
Shares |
11/12/2001 |
HYCorpAdml |
529 |
922031760 |