VCIT has some differences from rival funds in its category, but its duration risk is comparable.

“While the fund’s sector and credit-rating distribution differs from the category average, its duration-risk profile is similar to the corporate-bond category average. As of June 2018, its duration was 6.4 years, virtually the same as the category average. The fund will likely move in tandem with its category peers when rates move,” notes Morningstar.

Competitors to VCIT include the iShares Intermediate Credit Bond ETF (NASDAQ: CIU) and the X-trackers Investment Grade Bond – Interest Rate Hedged ETF (Cboe: IGIH). Morningstar has a silver rating on VCIT.

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

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