Vanguard Total Corporate Bond ETF

VTC

Market cap $1.26B

On October 8, 2025, Wedmont Private Capital increased its stake in Vanguard Total Corporate Bond ETF (VTC 0.25%) by purchasing 80,721 shares. The estimated trade value was $6.25 million, according to the SEC disclosure.

Muni and corporate bonds trading activity has been reaching record levels through the first half of 2025 at the Intercontinental Exchange (ICE). This certainly speaks to the attractiveness of both, which offer yield and strong fundamentals in the current market landscape.

The iShares Core U.S. Aggregate Bond ETF (AGG -0.30%) is a suitable option for investors seeking bond exposure in their portfolios. That said, the Vanguard Total Corporate Bond ETF (VTC -0.13%) is a better option for long-term investors on a risk/reward basis.

VTC offers broad, investment-grade corporate bond exposure with a low expense ratio, but is overweight BBB credits and has a 6.7-year duration. Current credit spreads and rates are not attractive for entry; spreads are near historic lows and rates may move structurally higher due to inflation and deficits. We expect VTC to become attractive only after a significant widening in credit spreads, ideally above 150-200 bps, or during a recession scenario.

With volatility spiking and stock market indexes like the S&P 500 (^GSPC 0.55%) and Nasdaq Composite (^IXIC 0.70%) down on the year, investors may be looking for ways to diversify their portfolios and collect some passive income.

Suppose you want to diversify stock-specific risk by buying exchange-traded funds (ETFs), which hold multiple positions in assets, and generate income. In that case, these three ETFs might be an excellent fit for your portfolio.

With the S&P 500 (^GSPC -1.46%) yield at just 1.2%, it has become more challenging to find companies or exchange-traded funds (ETFs) that can provide a steady and sizable stream of passive income. But that doesn't mean there aren't viable options if you know where to look.

The Vanguard Total Corporate Bond ETF offers balanced income and stability by investing in other Vanguard ETFs covering various parts of the corporate bond market. VTC's low expense ratio of 0.04% and its "ETF of ETFs" structure provide cost-effective, diversified exposure to investment-grade corporate bonds. The fund's portfolio includes short-, mid-, and long-term bonds, reducing interest rate risk and enhancing yield potential across the corporate bond yield curve.

With a steepening yield curve and rate cut expectations looming, the environment for the bond market can be a tricky one to navigate. That said, here are three bond funds from Vanguard to consider.

These three ETFs will perform differently across various market conditions, but they will do what it takes to maintain their monthly distributions.