Corporate Bond ETFs Tick up Higher
Meanwhile, corporate bond ETFs like the iShares Intermediate Credit Bond ETF (NASDAQ: CIU) and Vanguard Interm-Term Corp Bd ETF (NASDAQ: VCIT) ticked up higher. CIU was up 0.17% and VCIT was up 0.02%.
CIU tracks the investment results of the Bloomberg Barclays U.S. Intermediate Credit Bond Index. CIU focuses on investment-grade corporate debt and sovereign, supranational, local authority and non-U.S. agency bonds that are U.S. dollar-denominated and have a remaining maturity of greater than one year and less than or equal to ten years.
VCIT seeks to track the performance of a market-weighted corporate bond index with an intermediate-term dollar-weighted average maturity, namely the Bloomberg Barclays U.S. 5-10 Year Corporate Bond Index. While VCIT holds debt issues with maturities between 5 and 10 years, they are all investment-grade holdings to minimize default risk.
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