BND vs VCIT
Vanguard Total Bond Market ETF vs Vanguard Intermediate Term Corporate Bond ETF
Quick Verdict
VCIT delivered stronger 1-year returns. BND offers more diversification with 17,437 holdings.
Side-by-Side Comparison
| Metric | BND | VCIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $160.9B | $69.8B | |
| Dividend Yield | 4.02% | 4.87% | |
| Holdings | 17,437 | 2,271 | |
| YTD Return | -0.04% | -0.34% | |
| 1Y Return | +1.81% | +1.89% | |
| 3Y Return (annualized) | +4.14% | +5.93% | |
| 5Y Return (annualized) | -0.32% | +0.74% | |
| Volatility (annualized) | 4.6% | 6.0% | |
| Max Drawdown | -19.6% | -20.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Apr 3, 2007 | Nov 19, 2009 |
BND vs VCIT Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US). Over the past year BND returned +1.81% while VCIT returned +1.89%. Year to date, BND is down 0.04% versus a loss of 0.34% for VCIT.
Over three years, BND compounded at +4.14% per year against +5.93% for VCIT; over five years the annualized figures are -0.32% and +0.74% respectively. Across the full 17-year window we track, VCIT has the edge at +1.75% annualized vs +0.70%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VCIT has been the more volatile fund, with annualized monthly volatility of 6.0% compared with 4.6% for BND. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -19.6% for BND and -20.7% for VCIT. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
BND charges 0.03% per year while VCIT charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BND currently yields 4.02% against 4.87% for VCIT.
Holdings Overlap
BND and VCIT share 241 holdings out of 1217 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BND | Weight in VCIT | Difference |
|---|---|---|---|
| BAC V5.015 07/22/33 | 0.01% | 0.27% | 0.26% |
| JPM V4.912 07/25/33 | 0.01% | 0.25% | 0.24% |
| JPM V2.963 01/25/33 | 0.01% | 0.19% | 0.18% |
| WFC V5.605 04/23/36 | Pro | Pro | Pro |
| AER 3.3 01/30/32 | Pro | Pro | Pro |
| JPM V5.717 09/14/33 | Pro | Pro | Pro |
| ABBV 5.05 03/15/34 | Pro | Pro | Pro |
| WFC V5.499 01/23/35 | Pro | Pro | Pro |
| MS V5.32 07/19/35 | Pro | Pro | Pro |
| META 3.85 08/15/32 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, BND or VCIT?
BND has an expense ratio of 0.03% while VCIT charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BND or VCIT?
Over the past year BND returned +1.81% vs +1.89% for VCIT, so VCIT leads on 1-year performance. Over the longest common window we track (17 years), BND annualized +0.70% vs +1.75% for VCIT. Past performance does not guarantee future results.
Which is riskier, BND or VCIT?
VCIT has been the more volatile fund at 6.0% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs VCIT -20.7%.
Should I hold both BND and VCIT?
BND and VCIT have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between BND and VCIT?
BND and VCIT share 241 common holdings with a 0.8% weight overlap. Combined, they hold 1217 unique securities.
Which pays a higher dividend, BND or VCIT?
BND yields 4.02% while VCIT yields 4.87%, so VCIT currently pays the higher dividend yield.
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