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VCIT

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Analysis and statistics

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About

VCIT.US represents the Vanguard Intermediate-Term Corporate Bond ETF. This exchange-traded fund seeks to track the performance of a market-weighted corporate bond index with an intermediate-term maturity. Specifically, it invests in U.S. dollar-denominated, investment-grade, fixed-rate, taxable corporate bonds. VCIT provides investors with diversified exposure to the corporate bond market, offering potential income and capital appreciation while carrying risks associated with interest rate changes and credit quality of the underlying bonds.
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Factors

Interest Rate Changes: Rising interest rates generally decrease VCIT's price, as the value of existing bonds with lower yields declines, while falling rates tend to increase its price.

Credit Spreads: Widening credit spreads, reflecting increased risk aversion, lower VCIT's price as investors demand higher yields for corporate bonds. Conversely, narrowing spreads increase its price.

Market Sentiment: Overall investor sentiment towards corporate bonds impacts VCIT. Positive sentiment can drive prices up, while negative sentiment can push them down.

Economic Conditions: Economic growth typically supports corporate bond prices and VCIT, while recessions can negatively affect them due to increased default risk.

Supply and Demand: Increased demand for VCIT can push its price higher, while greater selling pressure can lower it. This is affected by ETF flows.

Inflation Expectations: Higher inflation expectations can lead to higher interest rates, negatively impacting VCIT's price, as investors demand higher yields to compensate for inflation.

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