VCIT
Vanguard Intermediate-Term Corporate Bond ETF
📎 Investment Objective
The Vanguard Intermediate-Term Corporate Bond ETF (VCIT) seeks to track the performance of a market-weighted corporate bond index with an intermediate-term dollar-weighted average maturity.
Overview
ETF tracking Vanguard Intermediate-Term Corporate Bond ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Vanguard Intermediate-Term Corporate Bond ETF (VCIT) seeks to track the performance of a market-weighted corporate bond index with an intermediate-term dollar-weighted average maturity.
🎯 Investment Strategy
The fund invests in a diversified portfolio of investment-grade corporate bonds with intermediate-term maturities. It employs a passive management strategy, seeking to provide broad exposure to the intermediate-term U.S. corporate bond market.
✨ Key Features
- Invests in a broad range of investment-grade corporate bonds with intermediate-term maturities (typically 5-10 years)
- Seeks to track the performance of the Bloomberg Barclays U.S. 5-10 Year Corporate Bond Index
- Low expense ratio of 0.05% makes it a cost-effective option for exposure to the corporate bond market
- Provides a balance of income and moderate price fluctuations compared to short-term or long-term bond funds
⚠️ Primary Risks
- Interest rate risk: Bond prices may decline as interest rates rise
- Credit risk: The risk that a bond issuer will default on its obligations
- Liquidity risk: The risk that the fund may have difficulty selling certain bonds at an advantageous time and price
- Market risk: The risk that the overall bond market will decline, affecting the value of the fund's holdings
👤 Best For
The Vanguard Intermediate-Term Corporate Bond ETF may be suitable for investors seeking exposure to the investment-grade corporate bond market with a moderate risk profile. It can be a core fixed income holding for investors with a medium-term investment horizon and a moderate tolerance for price fluctuations.