VB vs VCIT
VB vs VCIT
Vanguard Small Cap ETF vs Vanguard Intermediate Term Corporate Bond ETF
Quick Verdict
VB delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | VB | VCIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $81.5B | $67.3B | |
| Dividend Yield | 1.48% | 4.77% | |
| Holdings | 1,324 | 2,253 | |
| YTD Return | +17.82% | -0.43% | |
| 1Y Return | +29.09% | +2.34% | |
| 3Y Return (annualized) | +16.24% | +5.82% | |
| 5Y Return (annualized) | +8.18% | +0.84% | |
| Volatility (annualized) | 18.9% | 6.0% | |
| Max Drawdown | -61.0% | -20.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 26, 2004 | Nov 19, 2009 |
VB vs VCIT Performance
Vanguard Small Cap ETF (VB) is a ETF from Vanguard (US) and Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US). Over the past year VB returned +29.09% while VCIT returned +2.34%. Year to date, VB is up 17.82% versus a loss of 0.43% for VCIT.
Over three years, VB compounded at +16.24% per year against +5.82% for VCIT; over five years the annualized figures are +8.18% and +0.84% respectively. Across the full 17-year window we track, VB has the edge at +8.86% annualized vs +1.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VB has been the more volatile fund, with annualized monthly volatility of 18.9% compared with 6.0% for VCIT. 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 -61.0% for VB 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VB charges 0.03% per year while VCIT charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VB currently yields 1.48% against 4.77% for VCIT.
Holdings Overlap
VB and VCIT share 0 holdings out of 3131 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VB or VCIT?
VB 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, VB or VCIT?
Over the past year VB returned +29.09% vs +2.34% for VCIT, so VB leads on 1-year performance. Over the longest common window we track (17 years), VB annualized +8.86% vs +1.75% for VCIT. Past performance does not guarantee future results.
Which is riskier, VB or VCIT?
VB has been the more volatile fund at 18.9% annualized versus 6.0% for VCIT. Worst drawdown: VB -61.0% vs VCIT -20.7%.
Should I hold both VB and VCIT?
VB and VCIT have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VB and VCIT?
VB and VCIT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3131 unique securities.
Which pays a higher dividend, VB or VCIT?
VB yields 1.48% while VCIT yields 4.77%, so VCIT currently pays the higher dividend yield.
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