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Vanguard's VCIT ETF offers targeted, affordable exposure to intermediate-term investment-grade corporate bonds.

Market News
24 May 2026
24/7 Wall Street
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Vanguard's Intermediate-Term Corporate Bond ETF (VCIT) provides investors with access to over 2,200 investment-grade corporate bonds, primarily BBB and A rated, with an average duration of 6.1 years. It offers a low expense ratio of 0.03% and a 5.13% 30-day SEC yield, making it an attractive option for those seeking higher yield than broad bond ETFs like BND. However, VCIT is tax-inefficient, with a significant portion of returns lost to taxes on monthly distributions, so it is best held in tax-advantaged accounts like Roth IRAs. This ETF suits investors wanting more specific bond exposure while keeping costs low.

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