VCIT tracks the Bloomberg US 5-10 Year Corporate Bond Index and holds US dollar investment-grade corporate bonds with remaining maturities between five and ten years. The yield is above that of Treasuries of similar maturity to compensate for credit risk. Returns depend on interest rates, with duration of about six years, and on credit spreads, which tend to widen when recession risk rises. VCIT is the intermediate-term counterpart of VCSH.
