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Treasury Bonds vs. Corporate Bonds: Breaking Down VGIT and VCIT

Vanguard Intermediate-Term Treasury ETF (NASDAQ: VGIT) offers lower volatility and government backing, while Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ: VCIT) provides higher income potential through exposure to investment-grade corporate debt. Both funds target the middle of the yield curve, focusing on bond maturities between three and 10 years. Investors often use these intermediate-term instruments to balance the lower yields of short-term debt against the higher price sensitivity found at the long end.

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