Summary
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4 Corporate Bond Options as Credit Spreads Tighten
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Strong Fundamentals Are Underpinning Corporate Bonds
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Vanguard Intermediate-Term Corporate Bond Fund (VCIT) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has Vanguard Intermediate-Term Corporate Bond Fund ever had a stock split?
Vanguard Intermediate-Term Corporate Bond Fund Profile
| NASDAQ (NMS) Exchange | US Country |
Overview
The fund described operates within the financial sector, specifically focusing on investment services. It utilizes an indexing approach to mirror the performance of the Bloomberg U.S. 5-10 Year Corporate Bond Index. This strategy primarily involves investing in a mix of U.S. dollar-denominated, investment-grade, fixed-rate, taxable securities. These securities are issued by a diverse group of entities, including industrial, utility, and financial companies based in both the U.S. and abroad, with maturity periods ranging from 5 to 10 years. A key policy of the fund is to invest at least 80% of its assets in bonds that are constituents of the targeted index, adhering strictly to its investment-grade mandate under normal market conditions.
Products and Services
- Indexing Investment Approach:
- U.S. and Non-U.S. Corporate Bonds:
- Investment-Grade Focus:
The fund's primary product is an investment service based on an indexing strategy aimed at replicating the performance of the Bloomberg U.S. 5-10 Year Corporate Bond Index. This approach offers investors exposure to a diversified portfolio of investment-grade, fixed-rate, taxable bonds with maturities of 5 to 10 years, providing a balance between yield and duration risk.
As part of its product offering, the fund invests in a wide range of U.S. dollar-denominated securities. These include bonds issued by both U.S. and international companies across various sectors such as industrial, utility, and financial. This offers investors diversification not only geographically but also across different industries and company types, which can help in spreading risk and tapping into different growth opportunities.
The fund's emphasis on investment-grade bonds ensures that investors are exposed to lower credit risk compared to high-yield bond investments. This criterion aligns with the fund's strategy to provide a more stable and less volatile investment option that seeks to offer consistent returns over the medium term. It's especially attractive to conservative investors or those seeking to balance out more aggressive investments in their portfolio.
