(VCIT) Vanguard Intermediate-Term - Ratings and Ratios

The Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares (NASDAQ:VCIT) is designed to replicate the performance of the Bloomberg U.S. 5-10 Year Corporate Bond Index. This index comprises U.S. dollar-denominated, investment-grade, fixed-rate, taxable bonds issued by U.S. and non-U.S. industrial, utility, and financial companies, with maturities ranging from 5 to 10 years. The fund typically invests at least 80% of its assets in securities included in the index, ensuring a high level of correlation with the underlying benchmark. As a passively managed ETF, it aims to minimize tracking error while maintaining low operational costs. URL: http://www.vanguard.com

From a technical perspective, VCIT has shown stability in recent trading sessions. The ETFs short-term moving averages (SMA 20 and SMA 50) are closely aligned at 80.89 and 80.82, respectively, while the SMA 200 at 80.13 indicates a slightly longer-term uptrend. The Average True Range (ATR) of 0.52 reflects moderate volatility, suggesting that price fluctuations are relatively contained. The average 20-day trading volume of 6,606,230 shares underscores the ETFs liquidity, making it a viable option for both retail and institutional investors.

Over the next three months, based on , VCIT is expected to maintain its current trading range with a slight upward bias. The convergence of SMA 20 and SMA 50 near 80.85 suggests potential resistance, while the SMA 200 at 80.13 may act as a floor. The low ATR of 0.52 indicates that price movements will likely remain subdued, with upper and lower bounds projected at 81.50 and 79.50, respectively. Volume is expected to remain stable, averaging around 6.6 million shares per day, supported by the ETFs established investor base and liquidity.

From a perspective, VCITs assets under management (AUM) of $51.45 billion highlight its position as a major player in the corporate bond ETF space. This scale contributes to its liquidity and ability to track the benchmark index effectively. The funds focus on investment-grade bonds suggests that credit risk is well-managed, aligning with the risk profile of income-focused investors seeking stable returns in the intermediate-term corporate bond market.