Vanguard Total Corporate Bond ETF Draws Renewed Interest as Yields Stay Elevated
Key Points
Bought 80,721 shares, an estimated $6.25 million trade based on the quarterly average price
Trade represented 0.23% of 13F AUM
Post-trade position: 1,083,517 shares, valued at $84.80 million
Stake now accounts for 3.2% of fund AUM, placing it outside the fund's top five holdings
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On October 8, 2025, Wedmont Private Capital increased its stake in Vanguard Total Corporate Bond ETF(NASDAQ:VTC) by purchasing 80,721 shares. The estimated trade value was $6.25 million, according to the SEC disclosure.
What happened
According to an filing with the Securities and Exchange Commission dated October 8, 2025, Wedmont Private Capital increased its holding in the fund by acquiring 80,721 additional shares during Q3 2025. The estimated trade value, based on the quarterly average price, was $6.25 million. This brought the fund’s total position to 1,083,517 shares, worth $84.80 million.
What else to know
This buy increased the VTC stake to 3.2% of Wedmont’s reportable portfolio.
Top holdings after this filing:
- VEA (Vanguard FTSE Developed Markets ETF): $238,887,044 (8.9% of AUM)
- VWO (Vanguard FTSE Emerging Markets ETF): $154,227,148 (5.7% of AUM)
- VTI (Vanguard Total Stock Market ETF): $130,832,882 (4.9% of AUM)
- VOO (Vanguard S&P 500): $105.17 million (3.9% of AUM) as of 2025-09-30
- IEFA (iShares Core MSCI EAFE ETF): $99.44 million (3.7% of AUM) as of 2025-09-30
As of October 7, 2025, shares were priced at $78.26, up 0.23% over the past year, underperforming the S&P 500 by 12.04 percentage points.
The fund reported an annualized dividend yield of 4.68% as of October 8, 2025, and closed 0.94% below its 52-week high.
Company overview
| Metric | Value |
|---|---|
| AUM | 5.8 B (as of Sep 30, 2025) |
| Price (as of market close October 7, 2025) | $78.26 |
| Dividend yield | 4.68% |
| 1-year price change | 0.23% |
Company snapshot
Vanguard Total Corporate Bond ETF (VTC) gives investors one-stop access to the U.S investment-grade corporate bond market.
The fund tracks the performance of the Bloomberg U.S. Corporate Bond Index using a fund-of-funds and indexing approach, combining several Vanguard bond ETFs into a single and diversified portfolio.
It holds bonds issued by major industrial, utility and financial companies providing steady income with moderate risk. Designed as a core bond holding, VTC appeals to investors looking to balance stock-heavy portfolios while collecting reliable interest income.
Foolish take
Vanguard Total Corporate Bond ETF (VTC) is gaining attention as yields stay high and investors look to add balance after a volatile year for equities. The ETF tracks investment-grade corporate bonds, while offering exposure to major U.S issuers across industrial, utility and financial sectors.
With a dividend yield of near 4.7%, VTC provides meaningful income at a time when bonds are finally paying investors to wait. The Fed's policy remains tight which created an environment where quality bonds can deliver solid returns without taking on excessive credit risk.
For investors, the combination of steady income and potential price recovery makes VTC a valuable portfolio anchor in a diversified portfolio. If rates start to decline in 2026, today's yields could look even more attractive in hindsight. In that scenario, high quality bond funds may once again play a leading role in portfolio performance.
Glossary
ETF (Exchange-Traded Fund):An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
AUM (Assets Under Management):The total market value of assets that an investment firm or fund manages on behalf of clients.
13F AUM:The portion of a firm's assets reported in quarterly SEC Form 13F filings, covering certain U.S.-listed securities.
Fund-of-funds:An investment strategy where a fund invests in other funds rather than directly in securities.
Indexing approach:A strategy aiming to replicate the performance of a specific market index by holding its components.
Passive management:An investment style that seeks to match, not beat, a market index, typically through minimal trading.
Investment-grade:Bonds rated as relatively low risk of default by credit rating agencies, usually BBB- or higher.
Dividend yield:The annual dividend income expressed as a percentage of the investment's current price.
Annualized:A calculation that projects a figure, such as yield or return, over a one-year period.
Bloomberg U.S. Corporate Bond Index:A benchmark measuring the performance of U.S. dollar-denominated, investment-grade corporate bonds.
Rules-based methodology:An investment process that follows predefined, systematic criteria rather than manager discretion.
Reportable portfolio:The portion of an investment manager's holdings that must be disclosed in regulatory filings.
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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