Vanguard Short-Term Corporate Bond ETF

VCSH tracks a market-weighted index of investment-grade, fixed-rate corporate bonds with maturities between 1 and 5 years.

The fund tracks a market value-weighted index of US investment grade, fixed-rate corporate bonds with maturities between 1 and 5 years.

Vanguard Intermediate-Term Corporate Bond ETF

Vanguard Long-Term Corporate Bond ETF

With the expectation that the Federal Reserve will continue to cut interest rates, corporations proceeded to issue more bonds in Q3. Given this, fixed income investors have options, including three from Vanguard.

Get Corporate Bond Exposure 3 Ways After Q3 Issuance

Vanguard Short-Term Bond ETF

Vanguard Short-Term Treasury ETF

With capital markets expecting a rate-cutting cycle to begin, the yield curve has been steepening. But if economic data continues to reflect a hot economy, it may require keeping short-term bonds in play.

Hot Economy Could Keep Short-Term Bond Funds In Play

Rate cut expectations pushed more investors into investment-grade corporate bonds the past quarter, giving the asset class their best performance in nearly a year. “US high-grade corporate bonds logged their first quarterly gain this year in the past three months, returning 5.

High-Quality Corporate Bonds Notch Best Quarter of the Year

Rate cuts can produce a macroeconomic environment conducive to corporate bonds, allowing companies to borrow more money at lower rates. This could see more investors move into corporate bonds for greater yield opportunities.

Rate Cuts Could See More Investors in Corporate Bonds

Despite the heavy volatility during the month of August, ETFs saw a record number of inflows. This includes bond-focused funds, which are offering opportunities in corporate debt.

Higher ETF Inflows Could Benefit Corporate Bond Funds

The closing gap in credit spreads after the August 5 sell-off is bringing corporate bonds back into the spotlight. Those looking for an intermediate bond ETF with yield opportunities and a muted credit risk profile should take a closer look at the Vanguard Interim-Term Corporate Bond ETF (VCIT).

An Intermediate Bond ETF With Yield and Muted Credit Risk

The August 5 sell-off may have spooked investors from riskier assets, but tightening credit spreads between high-quality and high-risk bonds shows that investors may be returning to corporate bonds again. A weak July jobs report sparked recession fears, spurring a flight to safe haven assets like Treasuries.

Tightening Credit Spreads Bring Corporate Bonds Back

Whether it's due to a correction or potential recession, the stock market is certainly experiencing a heavy dosage of volatility. Given this, it's an ideal time to add bonds, especially if they are poised to outperform stocks over the next 10 years.

Bonds Could Be Poised to Outperform Stocks in Next Decade

It's easy to draw in fixed income investors to long-term bonds with their yield. If they don't want a potentially bumpy rate-risk ride, they could consider options on the yield curve's front end.

3 Funds to Consider for the Front End of the Yield Curve

Yield may be the prime motivator for adding exposure to bonds. But fixed income investors should also look to mitigate default and rate risk.

Mitigate Default and Rate Risk With These 2 ETFs

When looking to pair yield and credit quality, corporate bonds are an ideal option, especially when it comes to investment-grade. Additionally, investors also laud the diversification benefits they offer to a fixed income portfolio.

Higher Yields, Diversification Driving Demand for Corporate Bonds

Vanguard Ultra Short-Term Bond ETF

Tech stocks, especially those focusing on AI, may be at the top of investors' mind when it comes to equities. But bonds have also been in the limelight as of late.

4 Bond ETFs to Consider as Investor Demand Increases

Morningstar highlighted a list short-term bond funds that include a pair of Vanguard ETFs specifically for fixed income investors looking to park cash in the interim. With rate cuts expected to occur at some point, taking advantage of the high yields now is a prime reason to consider bond funds.

2 Bond ETFs to Consider for Short-Term Fixed Income Investors

Fidelity Total Bond ETF

iShares Trust iShares 1-5 Year Investment Grade Corporate Bond ETF

JPMorgan Equity Premium Income ETF

JPMorgan Nasdaq Equity Premium Income ETF

JPMorgan Ultra-Short Income ETF

American Century U.S. Quality Growth ETF

Invesco S&P 500 Quality ETF

SPDR S&P 500 ETF Trust

SPDR Portfolio S&P 500 Growth ETF

Neos S&P 500 High Income ETF

VettaFi hosted and moderated 79 webcasts and livecasts in the first half of 2024. Approximately 18,000 advisors joined us to learn from ETF and mutual fund industry experts on a range of equity, fixed income, commodities, and alternatives topics.

What Advisors Told VettaFi in First Half

Corporate bonds continue to garner interest as investors may be locking in current yields now before eventual rate cuts take place. In the meantime, it's an ideal time to consider corporate bond funds, especially given the attractive yields.

3 ETFs That Meet Rising Demand for Corporate Bonds

Vanguard Total Corporate Bond ETF

Fixed income investors looking for the dual benefit of price appreciation and high yields need not look any further than corporate bonds ETFs. Three offerings from Vanguard can suit investors as stand-alone exposure or for bond laddering purposes.

Yield, Potential Price Rally Draw Investors to Corporate Bonds

Extracting yield in the current market environment is a prime option for getting bond exposure. However, the risk associated with depreciating prices shouldn't put off prospective fixed income investors.

Bonds Are Still an Attractive Option in Current Environment

As the capital markets brace for potential rate cuts before the end of the new year, investor demand is building for corporate bonds, leading businesses to issue more debt from investment-grade to high yield.

Investor Demand Spurs Businesses to Issue More Bonds

As a Wall Street Journal report noted, corporate profits are on the rise after a majority of companies have reported their first-quarter earnings. In turn, this could bring more fixed income investors to corporate bonds if the profit outlook remains rosy.

Rosy Corporate Earnings Outlook Could Fuel These ETFs

The higher-for-longer interest rate narrative continues to play out as the U.S. Federal Reserve opted to once again keep rates unchanged. Rather than wait for interest rate cuts, some companies are opting to simply offload debt, which could be a boon for corporate bonds.

As Companies Offload Debt, Consider Corporate Bonds

Vanguard Short-Term Corporate Bond Index Fund ETF Shares is a low-risk investment option for conservative investors seeking income and stability. The VCSH ETF primarily invests in high-quality investment-grade corporate bonds with short-term maturity of 1 to 5 years. The fund offers a low expense ratio, a diversified portfolio, and minimal credit risk, making it an attractive option in the bond market.

VCSH: A Good Bond Fund For Conservative Investors

Vanguard Tax-Exempt Bond Index ETF

Even if higher-for-longer interest rates are applying downward pressure on bond prices — and conversely, upward pressure on yields — bonds still look enticing. Vanguard has a few bond-focused exchange-traded funds (ETFs) that are worth considering.

Bonds Look Enticing Even If Rate Cuts Come Later Than Expected

The demand for corporate bonds is extending beyond the need for yield. As credit quality conditions improve for corporate bonds, they also offer credit risk mitigation in tandem with higher yield versus safe haven government debt.

Higher Credit Quality Increases Demand for Corporate Bonds

In the parlance of capital markets, the higher-for-longer phrase has yet to dissipate. The economy continues to run hot and yields rise.

2 Bonds ETF Options to Ponder as Rate-Cut Expectations Fade

Short-term bonds can offer the investor an ideal way to mitigate credit risk via an investment-grade focus while also reducing the rate risk that longer-term bond offerings can carry. That said, Vanguard has three options worthy of considering to get short-term bond exposure.

News for Vanguard Short-Term Corporate Bond ETF ETF (VCSH)