Vanguard Intermediate-Term Corporate Bond Index Fund ETF SharesNASDAQ: VCIT

Despite the heavy volatility during the month of August, ETFs saw a record number of inflows. This includes bond-focused funds, which are offering opportunities in corporate debt.

The closing gap in credit spreads after the August 5 sell-off is bringing corporate bonds back into the spotlight. Those looking for an intermediate bond ETF with yield opportunities and a muted credit risk profile should take a closer look at the Vanguard Interim-Term Corporate Bond ETF (VCIT).

Whether it's due to a correction or potential recession, the stock market is certainly experiencing a heavy dosage of volatility. Given this, it's an ideal time to add bonds, especially if they are poised to outperform stocks over the next 10 years.

Vanguard Intermediate-Term Corporate Bond ETF invests in investment grade corporate bonds with weighted average maturity of 5 to 10 years. VCIT aims to provide moderate and sustainable current income with a low annual cost of 0.04% to unitholders. We will tell you why this fund is likely to beat equities and how you can beat this fund.

Fixed income investors looking for the dual benefit of price appreciation and high yields need not look any further than corporate bonds ETFs. Three offerings from Vanguard can suit investors as stand-alone exposure or for bond laddering purposes.

As the financial markets prepare for possible interest rate reductions by the end of the year, there is increasing investor interest in corporate bonds, prompting businesses to issue more debt across various credit ratings, from investment-grade to high yield.

According to a report from the Wall Street Journal, corporate profits are increasing following the release of first-quarter earnings reports, potentially attracting more fixed income investors to corporate bonds if the positive profit forecast continues.

The risk-on sentiment in equities could also be permeating into bonds. According to Reuters, more investors are willing to take on credit risk to attain yield, but there are other exchange-traded fund (ETF) options to consider.

The anticipation of rate cuts to come this year is making for a busy bond month to start 2024. Now, regional banks are adding to corporate bond sales, according to data from Bank of America.