N
The Daily Insight

Is VCIT a good investment?

Author

Mia Lopez

Updated on February 07, 2026

Is VCIT a good investment?

VCIT’s average yield to maturity of 2.3% is higher than the 0.67% yield of the 10-year U.S. Treasuries. Given the fact that the rate will remain low in the near term, the downside risk is limited. Therefore, VCIT is a good investment vehicle for investors seeking higher interest income than U.S. Treasuries.

What Vanguard bonds should I buy?

Best Vanguard Bond Funds Right Now

  1. Extended Duration Treasury ETF (NYSEARCA: EDV) The Vanguard Ext Duration Treasury ETF has been on the market since 2007.
  2. Long-Term Treasury ETF (NASDAQ: VGLT)
  3. Long-Term Bond ETF (NYSEARCA: BLV)
  4. Long-Term Corporate Bond ETF (NASDAQ: VCLT)
  5. Mega Cap Growth ETF (NYSEARCA: MGK)

What is the oldest Bond ETF?

First there were four. Now there are 325. That’s the number of fixed-income ETFs that have come to market in the 15 years since the very first bond ETFs launched July 26, 2002….related ETFs.

TickerNameYTD%
BNDVanguard Total Bond Market ETF-0.84%
IEFiShares 7-10 Year Treasury Bond ETF-1.60%

Which is better BND or Vbtlx?

BND is an ETF, whereas VBTLX is a mutual fund. BND has a higher 5-year return than VBTLX (3.07% vs 3.05%). BND has a lower expense ratio than VBTLX (0.04% vs 0.05%)….BND vs VBTLX.

BNDVBTLX
YTD Return-0.93%-0.89%
1-Year Return-0.23%2.25%
3-Year Return5.55%5.51%
5-Year Return3.07%3.05%

Does Bond ETF pay dividend?

Bond ETFs pay out interest through a monthly dividend, while any capital gains are paid out through an annual dividend. For tax purposes, these dividends are treated as either income or capital gains. In addition, bond ETFs are available on a global basis.

What is the ETF version of Vbtlx?

Total Bond Market ETFs

SymbolETF NameExpense Ratio
BNDVanguard Total Bond Market ETF0.04%
AGGiShares Core U.S. Aggregate Bond ETF0.04%
GVIiShares Intermediate Government/Credit Bond ETF0.20%
GBFiShares Government/Credit Bond ETF0.20%

How often does BND pay dividends?

Vanguard Total Bond Market Index Fund ETF Shares (NASDAQ:BND) pays monthly dividends to shareholders.

Is there a vanguard intermediate-term corporate bond ETF?

Under normal circumstances, at least 80% of the fund’s assets will be invested in bonds included in the index. No recent news for Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares. GIGB Goldman Sachs Access Investment Grade Co…

What kind of bonds does VCIT invest in?

The fund employs an indexing investment approach designed to track the performance of the Bloomberg Barclays U.S. 5-10 Year Corporate Bond Index. This index includes U.S. dollar-denominated, investment-grade, fixed-rate, taxable securities issued by industrial, utility, and financial companies, with maturities between 5 and 10 years.

How big does Vanguard interm term fund have to be?

Qualifying issues must be fixed rate and have at least $300 million in outstanding face value. The index is market-value weighted, which pulls the fund toward the largest and most liquid issues.

What kind of credit rating does VCIT have?

As of June 2020, more than 90% of its assets were rated BBB or A. While this does leave it susceptible to losses when credit spreads widen, it is an accurate reflection of the composition of the investment-grade corporate market.

Under normal circumstances, at least 80% of the fund’s assets will be invested in bonds included in the index. No recent news for Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares. GIGB Goldman Sachs Access Investment Grade Co…

The fund employs an indexing investment approach designed to track the performance of the Bloomberg Barclays U.S. 5-10 Year Corporate Bond Index. This index includes U.S. dollar-denominated, investment-grade, fixed-rate, taxable securities issued by industrial, utility, and financial companies, with maturities between 5 and 10 years.

How does an ETF make the bond market safer?

ETFs make the bond market safer, bank analysts say. No kidding, say ETF analysts. The Fund seeks to track the performance of a market-weighted corporate bond index with an intermediate-term dollar-weighted average maturity.

How does Barclays 5 year corporate bond index work?

The investment seeks to track the performance of a market-weighted corporate bond index with an intermediate-term dollar-weighted average maturity. The fund employs an indexing investment approach designed to track the performance of the Bloomberg Barclays U.S. 5-10 Year Corporate Bond Index.