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Kip 25

Vanguard High-Yield Corporate

Symbol: VWEHX
Expense Ratio: 0.23%

Vanguard High-Yield Corp is a bond fund generating income from corporate debt rated double-B or lower.

Manager Michael Hong, who works for Wellington Management, tilts toward higher-quality junk and likes to buy and hold. Hong favors firms with stable free cash flow and strong balance sheets. “It’s all about avoiding losers,” he says. The fund yields 4.7%.

See Kiplinger 25 at a Glance for the complete list of our favorite no-load mutual funds.

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And for the full collection of our Kiplinger 25 content, see KIPLINGER 25: A Guide to Our Favorite No-Load Funds.