Vanguard Intermediate-Term Corporate Bond ETF

VCIT

Market cap $57.8B

Vanguard Canada has announced the largest fee cut in its history, lowering costs on 12 products in its ETF and mutual fund lineup. The reductions apply to roughly one-quarter of its Canadian products, including all asset allocation ETFs, all mutual funds, and several fixed income ETFs.

Corporate bonds typically appeal to those seeking higher yield potential relative to safer government debt, but current market uncertainty may keep fixed income investors from making the move. However, strong fundamentals are also underpinning corporate bonds, which only add to their appeal despite ongoing risks.

Vanguard Intermediate-Term Corporate Bond ETF and iShares 5-10 Year Investment Grade Corporate Bond ETF are both rated as buys for intermediate-term corporate bond exposure. VCIT stands out with lower costs, higher liquidity, a slightly higher dividend yield, and more flexible portfolio management, giving it a modest edge over IGIB. IGIB offers greater diversification and slightly higher credit quality, making it the more conservative choice, but VCIT's agility supports stronger long-term performance.

Initiated 248,946 shares in VCIT; estimated transaction value of $20.94 million Post-trade holding: 248,946 shares valued at $20.94 million VCIT is now the fund's 2nd-largest holding, accounting for 8.11% of AUM after the quarter

As widely expected, the U.S. Federal Reserve cut the federal funds rate by 25 basis points for a second time this year. This gives fixed income investors an opportunity to reposition their portfolios with intermediate bonds or reconsider active exposure if they don't have it already.

Towerpoint Wealth sold 33,519 shares in Vanguard Intermediate-Term Corporate Bond ETF, worth about $2.57 million. The trade represented about 1% of Towerpoint's AUM.

Bought 45,077 shares, estimated at $3,749,618 for the period ended September 30, 2025 Change represents 0.4% of 13F reportable assets under management for the period Post-trade holding: 495,624 shares valued at $41.69 million Position now makes up 4.44% of fund AUM, the 4th-largest holding

In a rate-hiking environment the last few years, short-term bonds have been the default exposure option. But as the bond market expects more rate cuts to come after September's drop of 25 basis points, investors may want to consider intermediate bonds as a way to maximize income.

Elected officials' continued debate about the budget on Capitol Hill could spur additional interest rate cuts. Given these current market forces, fixed income investors may want to reposition their portfolios to attain corporate bond exposure.

Market uncertainty continues to linger in the back of fixed income investors' minds. But that can force much-needed recalibration of portfolios as tariffs and rate cuts loom.