ARLP - VCIT: A Good Way To Beat Equities But You Can Beat This One Yourself
2024-06-26 02:08:18 ET
Summary
- Vanguard Intermediate-Term Corporate Bond ETF invests in investment grade corporate bonds with weighted average maturity of 5 to 10 years.
- VCIT aims to provide moderate and sustainable current income with a low annual cost of 0.04% to unitholders.
- We will tell you why this fund is likely to beat equities and how you can beat this fund.
The Fund
Vanguard Intermediate-Term Corporate Bond ETF ( VCIT ) invests in investment grade corporate bonds , which at the portfolio level have a weighted average maturity between 5 and 10 years. Since the issuances are backed by a good credit rating, i.e. investment grade, the earning potential is limited. This makes sense since there is less credit risk involved in holding the securities. Taking this into account, VCIT aims to "provide a moderate and sustainable level of current income" as stated on its website . Annually, the fund costs a low 0.04% to its unitholders....
VCIT: A Good Way To Beat Equities, But You Can Beat This One Yourself