Vanguard Target Maturity 2029 Corporate Bond ETF

Vanguard Target Maturity 2029 Corporate Bond ETF is a passive exchange-traded fund that tracks the ICE 2029 Maturity US Corporate Constrained Index, providing exposure to a market-weighted portfolio of U.S. dollar-denominated corporate bonds scheduled to mature in 2029. Unlike traditional bond funds, this ETF has a defined endpoint where bonds mature and the portfolio winds down, returning investors' principal in theory. The fund gradually shifts its allocation from intermediate-term bonds to cash as the maturity date approaches, making it particularly useful for investors engaged in bond laddering and liability matching strategies. Managed by Vanguard's bond index experts, the ETF employs direct physical replication, meaning shareholders own the underlying securities in the fund's portfolio. As a passive index fund with an expense ratio of 0.08%, it offers competitive pricing compared to similar target-maturity offerings. The fund distributes dividend income to shareholders and provides a straightforward approach for investors seeking fixed-income exposure with a predetermined maturity timeline.