Vanguard High-Yield Corporate Delivers the Cash

It favors the highest-quality junk bonds, which fared much better over the past year than lower-quality debt.

Person putting 100 dollar bills in their wallet
(Image credit: Getty Images)

The bond market was “utter chaos” during the sell-off early this year, says Michael Hong, manager of Vanguard High-Yield Corporate (VWEHX) fund, a member of the Kiplinger 25 or our list of favorite low-fee mutual funds. Prices cratered over eight trading days, and liquidity—the ability to buy or sell securities at efficient prices—dried up. “This was as challenging a market as I’ve ever lived through,” says Hong, who joined Wellington Management, the fund’s sub­adviser, in 1997.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Nellie S. Huang
Senior Associate Editor, Kiplinger's Personal Finance

Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.