Vanguard Long-Term Corporate Bond ETF

The article discusses the Vanguard Long-Term Corporate Bond ETF (VCLT) as a potential passive income investment option, highlighting its high dividend yield of 5.62% and focus on investment-grade corporate bonds with low management fees.

The article discusses the Vanguard Intermediate-Term Corporate Bond ETF (VCIT) as a potential middle ground for income investors, balancing risk and reward. It compares VCIT's performance and yield to other bond ETFs, highlighting its advantages as a core holding for income portfolios.

Investing $30,000 in Vanguard's Emerging Markets Government Bond ETF, Long-Term Corporate Bond ETF, and Intermediate-Term Corporate Bond ETF could generate over $1,700 in passive income annually. However, the Emerging Markets ETF carries higher risk due to volatility in emerging markets.

Vanguard bond ETFs declined before Trump's inauguration due to concerns about his proposed tariffs, but rebounded after he didn't impose new tariffs in his first few days. However, the author believes investors should be cautious as Trump still seems determined to implement tariffs, which could negatively impact long-term bond prices.

A record amount of money has flooded into the U.S. corporate bond markets this year, as investors rush to lock in the highest yields years ahead of the Fed rate cuts.