Vanguard Total Corporate Bond Fund (NASDAQ:VTC) Sets New 12-Month Low - What's Next?

The Vanguard Total Corporate Bond Fund (NASDAQ:VTC) has recently hit a new 52-week low, raising questions among investors about the future of this investment. On Thursday, the fund's price fell to $73.14, matching its lowest point in a year. This was a significant drop from its previous closing price of $77.51, and the trading volume reached only 265 shares at this new low.

Vanguard Total Corporate Bond Fund Stock Trend

Analyzing the fund's performance, it currently shows a 50-day simple moving average of $77.41 and a two-hundred day simple moving average of $77.36. These indicators suggest that the current decline may not be just a temporary dip, and investors might need to assess their strategies moving forward.

Recent Dividend Increase

On a positive note, Vanguard Total Corporate Bond Fund recently announced an increase in its monthly dividend, which was paid out on November 5th. The dividend was set at $0.30 per share, up from the previous $0.28. This results in an annualized dividend of $3.60, giving investors a yield of 4.66%. It's important to note that the ex-dividend date for this increase was November 1st.

Hedge Fund Activity

Investor interest, particularly from hedge funds, has seen fluctuations as well. Various hedge funds have adjusted their positions in VTC recently. For instance, International Assets Investment Management LLC acquired a new stake worth approximately $31,000 in the second quarter, while Ridgewood Investments LLC invested about $38,000. Breakwater Investment Management's new position was valued around $187,000. Meanwhile, Commonwealth Equity Services LLC expanded its stake by 21.9%, ending up with a total of 3,215 shares valued at $243,000 after adding 577 shares in the last quarter. Investment Advisory Group LLC also increased its position by 13%, with holdings now totaling 4,339 shares worth $328,000 after acquiring 500 additional shares.

About Vanguard Total Corporate Bond Fund

The Vanguard Total Corporate Bond ETF (VTC) is an exchange-traded fund that tracks the Bloomberg U.S. Corporate Bond index. This fund aims to provide investors with exposure to a wide array of investment-grade U.S. corporate bonds across various maturities. Launched on November 7, 2017, the fund is managed by Vanguard.

Investment Consideration

While the Vanguard Total Corporate Bond Fund currently holds a 'Hold' rating among analysts, it is essential for potential investors to do their own research before making investment decisions. MarketBeat has highlighted several other stocks that top analysts are suggesting as potentially better investment opportunities at the moment, indicating that VTC may not be the best choice right now. Understanding market dynamics and consulting with financial advisors can be helpful for anyone considering an investment in this bond fund.

Vanguard, Bonds, Investment