Comparison of Vanguard Bond ETFs: Yield and Risk
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 22h ago
0mins
Should l Buy META?
Source: Fool
- Yield and Risk Differences: Vanguard's VCIT ETF achieved nearly 9% returns over the past year with a 4.6% dividend yield, while VGIT offered around 7% returns and a 3.7% yield, indicating that VCIT compensates investors for taking on corporate credit risk with higher income.
- Cost and Size: Both ETFs charge an expense ratio of 0.03%, among the lowest in the bond ETF space, with VCIT managing $61.8 billion and VGIT $44.6 billion, reflecting greater market appeal and investor confidence in VCIT.
- Portfolio Composition: VCIT invests primarily in high-quality investment-grade corporate debt, including holdings in Meta and U.S. Treasuries, while VGIT focuses exclusively on U.S. government bonds, offering lower credit risk suitable for conservative investors.
- Market Volatility Response: During market volatility, VGIT typically attracts investors due to the safety of Treasuries, while VCIT may experience greater price fluctuations due to corporate credit risk, necessitating investors to choose based on their risk tolerance.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 824.71 USD with a low forecast of 655.15 USD and a high forecast of 1117 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 670.210
Low
655.15
Averages
824.71
High
1117
Current: 670.210
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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