After looking around, this fund looks like the best place for cash right now. I also have some money in the Vanguard TIP fund VIPSX, but it isn't paying very high interest rates.

Vanguard High yield corporate bond fund VWEHX is attractive, but vulnerable if the bear market returns, since corporate bond prices tend to follow stocks. To get a comparable yield in Vanguard's muni bond fund VWITX or the investment grade intermediate term VFICX means going with bonds that have a much longer average duration and maturity, and therefore much more interest rate risk. There are good reasons why the share price on this fund has done so well compared to other bond funds.

Worst case scenario is that the economy recovers enough to allow inflation to kick in and interest rates to rise, in which case it might be wise to sell some VFIIX and buy a stock fund.

The other risk is if mortgage rates stay low enough to motivate people to refinance, which could result in a slightly lower yield on the fund, but this doesn't seem like a major risk; and it's easy to trade out if so.

But with unemployment so high and likely to get higher, businesses simply can't afford to rise prices now and for some time, at least a year or so. So for the money that I don't want to risk in stocks, I think this fund is the best place to be.