VCIT vs TTTXX? Am I thinking about this right?

Investing Questions

Hi all

Fairly new to investing for myself but I get the basics at a high level. What I’m not so sure about is specifics. Right now I’m slowly moving my savings from a minuscule interest savings account to a more strategic investment mix via Merrill edge (in consultation with a fee-based advisor).

  • I am keeping my emergency fund in my savings account for immediate access

  • I have a portion in TTTXX for… I don’t know what. Caution? The yields are decent and I’ve sort of been waiting to see what kind of dividend/interest I get each month on it and it hasn’t been bad! That said it’s not really part of my strategy I’m just pacing myself.

  • I have 40% of my “strategized” investments in VCIT. It’s only been just over a month but already I can see that with the dividends alone, VCIT return is far superior to TTTXX. Which I guess makes sense.

But before I go all in and move TTXXX into VCIT, what are the pros and cons? What am I not considering?

Some questions:

  • does the short term nature of the TTTXX investment matter if I sell to buy VCIT?
  • is liquidity majorly different?
  • I know TTTXX is a pretty safe investment and that the bond market can decline, but if VCIT declines but it’s dividends outweigh the interest from TTTXX, then does it potentially even out?
  • with talk of bond market disruptions due to trump bs, should I be bullish or bearing on bonds like VCIT right now? How worried should I be about declines in VCIT?
  • what else am I not considering?

I don’t need this money right now and since I can’t afford to buy a house I’m not really sure what to do with it other than keep it relatively safe and hope it keeps growing at a decent pace.

Thanks!

Posted Jun 1, 2025, 4:45 PM UTC

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