Vanguard Total Corporate Bond ETF (VTC)

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spdoublebass
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Vanguard Total Corporate Bond ETF (VTC)

Post by spdoublebass » Fri Nov 10, 2017 6:26 pm

I read the other two (three?) threads on this ETF.

I have often heard (read) Mr. Bogle say something along the lines that a little bit of extra corporate bonds to TBM or a IT Bond fund (such as BIV) isn't a bad idea.

Would this be a vehicle to get those extra corporate bonds? I'm just curious. I am happy with TBM for myself for now. I just have not read any discussions of this on the other threads. The only other corporate bonds I read that some people use here is the ST ones (VCSH).
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coincollector
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Re: Vanguard Total Corporate Bond ETF (VTC)

Post by coincollector » Fri Nov 10, 2017 7:21 pm

I took the concept to be the same as BND but with just corporate bonds. If your looking to own more corporate bonds but don't want to choose a specific time length, just like you wouldn't have too with BND, then should be perfect

dbr
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Re: Vanguard Total Corporate Bond ETF (VTC)

Post by dbr » Fri Nov 10, 2017 7:23 pm

Yes, this would be a vehicle to get more corporate bonds and at a duration similar to TBM, which one would assume you would want. Buying very short bonds is a different issue entirely more related to finding a bond fund that is almost cash like.

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Artsdoctor
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Re: Vanguard Total Corporate Bond ETF (VTC)

Post by Artsdoctor » Fri Nov 10, 2017 7:30 pm

Interesting. It's so new that it hasn't even had its first distribution yet. The website information is pretty spartan. I don't see the duration listed. It's supposed to be a combination of three ETFs: the short-tern, intermediate-term, and long-term corporate bond ETFs. Maybe I'm missing the stats, but you might want to wait until more data are available on Vanguard's web page.

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spdoublebass
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Re: Vanguard Total Corporate Bond ETF (VTC)

Post by spdoublebass » Mon Nov 13, 2017 10:13 pm

Yeah, I'll hold off until more information is out.

I was trying to separate a small portion of my bonds (which are all in TBM) from TBM based on duration, just to have a little more control over what to rebalance with. The more I think about it though, it might be better to separate a small portion of the corporates and treasury bond funds from TBM instead.

I have no qualms with TBM, tinkering a bit with the bonds makes things a bit more entertaining and allows me to not mess with the equity side of things :beer
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Re: Vanguard Total Corporate Bond ETF (VTC)

Post by duckcalldan » Tue Nov 14, 2017 7:41 am

With the exception of enough VFSUX (ST investment grade fund) to live on for about 18 months in case of a stock selloff, all of my bond allocation is in my rollover IRA. It’s comprised of 2/3 VGIT (V* intermediate govt bond) and 1/3 VCIT (same but corporate). This arrangement allows me to tailor the govt/corp ratio to my liking, and also eliminates LT bonds as found in BND and other ETFs.

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Re: Vanguard Total Corporate Bond ETF (VTC)

Post by spdoublebass » Fri Nov 17, 2017 5:58 pm

duckcalldan wrote:
Tue Nov 14, 2017 7:41 am
With the exception of enough VFSUX (ST investment grade fund) to live on for about 18 months in case of a stock selloff, all of my bond allocation is in my rollover IRA. It’s comprised of 2/3 VGIT (V* intermediate govt bond) and 1/3 VCIT (same but corporate). This arrangement allows me to tailor the govt/corp ratio to my liking, and also eliminates LT bonds as found in BND and other ETFs.
Did you eliminate LT bonds in case interest rates increase?


I guess I'll get more to the point. I split my equities 50/50 between domestic market weight and Global market weight. I do this by holding only TSM and VT (Total World). I like that even though there is overlap between these two funds, they adjust with market weight. So right now I'm at around 26% International overall.

I know I could only hold TBM and call it a day, but I kept the 50/50 split between the two portfolios even on the bond side. So I hold half of my fixed income at Global weight, which I accomplish by using TBM, TIBM, and EM Bonds.

For the other half of my FI I have been using TBM, but I was always wishing to break it down a little. I didn't know if I should break it down by duration (ST/IT/LT) or by types of bonds (Corporate/Treasury). To be honest, this sounds great in my head, but when you think about how to implement it, I have to stop and ask myself does this serve a purpose?

I think it could for rebalancing purposes, but then again at the end of the day how much different would it be from just holding TBM?
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