Vanguard U.S. High-Yield Corporate Bond Index ETF (VCHY)

Vanguard U.S. High-Yield Corporate Bond Index ETF (VCHY) is an exchange-traded fund that seeks to track an index of U.S. dollar-denominated corporate bonds rated below investment grade. These high-yield bonds are issued by companies with weaker credit profiles and pay higher interest to compensate for greater default risk.

The fund follows a passive, rules-based approach, aiming to mirror the characteristics of its benchmark across industries and issuers rather than relying on active security selection. Its returns are driven by interest income and by changes in credit spreads and the credit health of the issuers it holds.

The fund is managed by The Vanguard Group, which also offers an actively managed high-yield bond ETF.