A Broad, Cost-Effective Corporate Bond ETF

VCIT has an average duration of 6.4 years and an average effective maturity of 7.5 years. The fund’s yield-to-maturity is 4.1%. This Vanguard ETF holds nearly 1,730 bonds and has $18.6 billion in assets under management.

“The strategy’s three- and five-year annualized returns of 2.2% and 2.8% were behind the category average. This underperformance was driven principally by the portfolio’s relatively conservative construction that excludes below-investment-grade bonds. Its risk-adjusted returns, measured by Sharpe ratio, were in line with the category average over the same periods thanks to its significant cost advantage,” according to Morningstar.

VCIT has a 30-day SEC yield of 3.45% and is down 4.06% year-to-date.

For more information on corporate debt, visit our corporate bonds category.