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Vanguard Corp High Yield 8.31%
Old 09-17-2008, 06:58 PM   #1
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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.
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Old 09-17-2008, 07:05 PM   #2
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Where are you getting that yield number? The Vanguard web site says the yield is 9.00%.
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Old 09-17-2008, 07:07 PM   #3
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Originally Posted by FIRE'd@51 View Post
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.
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Old 09-17-2008, 07:21 PM   #4
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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.
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Old 09-17-2008, 07:23 PM   #5
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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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Old 09-17-2008, 10:29 PM   #6
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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.
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