Vanguard Long-Term Bond ETF

The Vanguard Long-Term Bond ETF is a type of exchange-traded fund that focuses on long-term bonds, primarily aiming to provide investors with monthly income through investments in high-quality corporate and U.S. government bonds. The primary function of this ETF is to track the performance of a specific bond index to deliver returns through interest payments and capital appreciation over time. Notable for its exposure to long-term fixed-income securities, this ETF primarily impacts sectors such as institutional investing, individual retirement accounts, and conservative income portfolios. The ETF plays a significant role in the financial markets by offering a diversified approach to bond investments, enabling investors to participate in broad market trends across the fixed-income spectrum. With a focus on longer duration bonds, this ETF is subject to greater interest rate risk, meaning its value can be more volatile in response to interest rate changes, a characteristic essential for those seeking stable, long-duration income sources in various market environments.