BND vs VCIT
Vanguard Total Bond Market ETF vs Vanguard Intermediate Term Corporate Bond ETF
Which is better, BND or VCIT?
Intermediate Term Bond against Long Term Mid Quality.
BND led over 1Y, VCIT over 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BND | VCIT |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $160.9B | $69.8B |
| Dividend Yield | 4.04% | 4.89% |
| Holdings | 17,437 | 2,271 |
| YTD Return | -1.23%Best | -1.72% |
| 1Y Return | -0.42%Best | -0.83% |
| 3Y Return (annualized) | +4.09% | +5.86%Best |
| 5Y Return (annualized) | -0.57% | +0.46%Best |
| Volatility (annualized) | 4.5%Best | 5.9% |
| Max Drawdown | -19.6%Best | -20.7% |
| $10,000 over 5 years | $9,718 | $10,232Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | Intermediate Term Bond | Long Term Mid Quality |
| Inception | Apr 3, 2007 | Nov 19, 2009 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Sep 18, 2026 (16.8 years).
BND vs VCIT growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 16.8 years both funds cover.
BND vs VCIT Performance
Vanguard Total Bond Market ETF (BND) is an ETF from Vanguard (US) and Vanguard Intermediate Term Corporate Bond ETF (VCIT) is an ETF from Vanguard (US). Over the past year BND returned -0.42% while VCIT returned -0.83%. Year to date, BND is down 1.23% versus a loss of 1.72% for VCIT.
Over three years, BND compounded at +4.09% per year against +5.86% for VCIT; over five years the annualized figures are -0.57% and +0.46% respectively. Across the full 17-year window we track, VCIT has the edge at +1.66% annualized vs +0.38%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VCIT has been the more volatile fund, with annualized monthly volatility of 5.9% compared with 4.5% 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 what each fund did in the worst stretch of the window measured above.
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 4.04% against 4.89% for VCIT.
Holdings Overlap
We hold position weights for 16 holdings in BND and 1,364 in VCIT, totalling 1.5% and 61.8% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 1 positions appear in both.
1 positions in common, counted across the 16 positions we hold weights for in BND and 1,364 in VCIT, against full books of 17,437 and 2,271.
Top Shared Holdings
| Stock | Weight in BND | Weight in VCIT | Difference |
|---|---|---|---|
| D 4.65 08/15/43 DVirginia Elec & Power Co 4.65 08/15/2043 | 0.00% | 0.00% | 0.00% |
You are not choosing between two funds in isolation.
Whichever of BND and VCIT you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BND or VCIT?
BND has an expense ratio of 0.03% while VCIT charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, BND or VCIT?
Over the past year BND returned -0.42% vs -0.83% for VCIT, so BND leads on 1-year performance. Over the longest common window we track (17 years), BND annualized +0.38% vs +1.66% for VCIT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BND or VCIT?
VCIT has been the more volatile fund at 5.9% annualized versus 4.5% 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. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, BND or VCIT?
BND yields 4.04% while VCIT yields 4.89%, so VCIT currently pays the higher dividend yield.
Is VCIT better than BND?
BND led over 1Y, VCIT over 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. Which one suits a particular account depends on what it is for. This is information, not a recommendation.