Vanguard Corp High Yield 8.31%

dex · 09-17-2008, 06:58 PM

As of today's close the Vanguard Corp High Yield fund is yielding 8.31% while Wellesly is yielding 5.02%
Close 5.34
Annualized Int .0.444 8.31% I still have some cash remaining that I will be putting into the High Yield.

FIRE'd@51 · 09-17-2008, 07:05 PM

Where are you getting that yield number? The Vanguard web site says the yield is 9.00%.

dex · 09-17-2008, 07:07 PM

Quote:

Originally Posted by FIRE'd@51

Where are you getting that yield number? The Vanguard web site says the yield is 9.00%.

I took the last dividend * 12 and divided it by the current price.
Vanguard might include some capital gains.

FIRE'd@51 · 09-17-2008, 07:21 PM

You are correct. According to footnote A, the 9.00% is the 30-day yield-to-maturity. I get the same thing you do when I calculate the yield the way you did.

socca · 09-17-2008, 07:23 PM

This fund has little or no exposure to the financial services industry, which is great. I still classify it as among my riskiest investments. With its extremely high yield, it could perform awesomely if fund managers can find a way to halt the steady decline in NAV. As it is, I feel like I'm getting my own capital back as yield, with a few percentage points added on to make holding the fund just barely worthwhile. I hope VG's bond buyers are scrutinizing these risky bonds very carefully!

cute fuzzy bunny · 09-17-2008, 10:29 PM

Yep, if you look at it long term, you're basically losing 1-2% a year on the NAV, while collecting 8.xx%. Not too bad. At least you're getting 5% over treasuries.

09-17-2008, 06:58 PM	#1
dex Thinks s/he gets paid by the post Join Date: Oct 2003 Posts: 3,178	Vanguard Corp High Yield 8.31% As of today's close the Vanguard Corp High Yield fund is yielding 8.31% while Wellesly is yielding 5.02% Close 5.34 Annualized Int .0.444 8.31% I still have some cash remaining that I will be putting into the High Yield. __________________ Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral

09-17-2008, 10:29 PM	#6
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Losing my whump Posts: 22,527	Yep, if you look at it long term, you're basically losing 1-2% a year on the NAV, while collecting 8.xx%. Not too bad. At least you're getting 5% over treasuries. __________________ Many an optimist has become rich by buying out a pessimist

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09-17-2008, 07:05 PM	#2
FIRE'd@51 Thinks s/he gets paid by the post Join Date: Aug 2006 Posts: 1,137	Where are you getting that yield number? The Vanguard web site says the yield is 9.00%.

09-17-2008, 07:21 PM	#4
FIRE'd@51 Thinks s/he gets paid by the post Join Date: Aug 2006 Posts: 1,137	You are correct. According to footnote A, the 9.00% is the 30-day yield-to-maturity. I get the same thing you do when I calculate the yield the way you did.

09-17-2008, 07:23 PM	#5
socca Recycles dryer sheets Join Date: Nov 2005 Location: Sarasota, FL Posts: 375	This fund has little or no exposure to the financial services industry, which is great. I still classify it as among my riskiest investments. With its extremely high yield, it could perform awesomely if fund managers can find a way to halt the steady decline in NAV. As it is, I feel like I'm getting my own capital back as yield, with a few percentage points added on to make holding the fund just barely worthwhile. I hope VG's bond buyers are scrutinizing these risky bonds very carefully!

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