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Vanguard Short-Term Corporate Bond ETF is a fixed-income ETF with $42.8 billion in AUM and a low volatility profile. The fund is overweight A and BBB corporate bonds and provides exposure to the short-term investment-grade U.S. corporate bond market. The predicted 12-month return for VCSH is 6%, with a potential drawdown of -1.6% from credit spreads widening.
The anticipation of rate cuts to come this year is making for a busy bond month to start 2024. Now, regional banks are adding to corporate bond sales, according to data from Bank of America.
With the prospect of rate cuts this year, companies are feeling emboldened to issue new debt. As such, fixed income investors have myriad opportunities to get exposure via corporate bond ETFs.
Federal Reserve rate hikes have led to higher yields on bonds and fixed-income securities. VCSH offers slightly higher income with slightly higher risk than T-bills. An overview of the fund follows.
The S&P 500 has rallied in recent days and was up close to 20% for the year. However, heading into 2024, many advisors are exploring a range of investment ideas that offer exposure beyond the stock market.
Back-to-back years of celebration for VettaFi's research! Last week, VettaFi received the Best U.S. ETF Research award from ETF Express, a dedicated ETF news outlet, at an awards reception in New York.
While the U.S. bond market continues to show signs of struggle this year, investors should still hold fixed income ETFs. For one thing, prices are down while yields are up.
For many, social security isn't enough to fund their retirement needs. Bonds can help produce another income stream.
Vanguard Short-Term Corporate Bond Index Fund ETF Shares is a good option for investors looking to park their cash temporarily in a low-risk vehicle. The fund invests in a well-diversified basket of almost 2,500 corporate bonds with an average yield of 5.5% and average duration of 2.7 years. The fund's holdings are mostly rated AA, A, or BBB, with a low risk of default, and the majority of the bonds will mature within 1 to 4 years.
Fixed income investors are undoubtedly hoping that the current consensus regarding the Federal Reserve not raising interest rates for the remainder of this year proves true. The July reading of the Consumer Price Index (CPI) appears to imply the central bank might just have that latitude.