VCSH Stock Recent News

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.

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.

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

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.

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.

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.

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.

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.

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.

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.