VCSH - VCIT: Still Worth Buying
2024-01-29 10:19:42 ET
Summary
- VCIT has returned 5.16% since June 2023 but has seen a significant rally of over 9.5% since late October.
- The market seems overly optimistic about Fed rate cuts, but VCIT is still expected to have capital appreciation when rates are cut in 2024.
- VCIT is still a buy due to the potential for positive returns and a high yield of 5.09%.
Back in June 2023, I covered Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares (VCIT). I gave it a Buy rating because I expected both falling market interest rates and 2024 cuts to the Fed funds rate. I expected this because of a recession, but clearly, that hasn't happened. Regardless, my underlying thesis of falling rates still materialized to an extent. Since my rating, VCIT has returned 5.16%....
VCIT: Still Worth Buying