VBK vs VCIT

Quick Verdict

VCIT has a lower expense ratio. VBK delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.

Lower Fees: VCITHigher Returns: VBKMore Diversified: VCIT

Side-by-Side Comparison

MetricVBKVCITWinner
Expense Ratio0.05%0.03%
AUM$24.8B$67.3B
Dividend Yield0.57%4.77%
Holdings5612,253
YTD Return+17.71%-0.43%
1Y Return+29.45%+2.34%
3Y Return (annualized)+16.91%+5.82%
5Y Return (annualized)+5.29%+0.84%
Volatility (annualized)19.6%6.0%
Max Drawdown-59.4%-20.7%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityFixed Income
InceptionJan 26, 2004Nov 19, 2009

VBK vs VCIT Performance

Vanguard Small Cap Growth ETF (VBK) is a ETF from Vanguard (US) and Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US). Over the past year VBK returned +29.45% while VCIT returned +2.34%. Year to date, VBK is up 17.71% versus a loss of 0.43% for VCIT.

Over three years, VBK compounded at +16.91% per year against +5.82% for VCIT; over five years the annualized figures are +5.29% and +0.84% respectively. Across the full 17-year window we track, VBK has the edge at +9.41% annualized vs +1.75%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VBK has been the more volatile fund, with annualized monthly volatility of 19.6% 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 -59.4% for VBK 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VBK charges 0.05% per year while VCIT charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, VBK currently yields 0.57% against 4.77% for VCIT.

Holdings Overlap

0.0%overlap

VBK and VCIT share 0 holdings out of 2561 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, VBK or VCIT?

VBK has an expense ratio of 0.05% while VCIT charges 0.03%. VCIT is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, VBK or VCIT?

Over the past year VBK returned +29.45% vs +2.34% for VCIT, so VBK leads on 1-year performance. Over the longest common window we track (17 years), VBK annualized +9.41% vs +1.75% for VCIT. Past performance does not guarantee future results.

Which is riskier, VBK or VCIT?

VBK has been the more volatile fund at 19.6% annualized versus 6.0% for VCIT. Worst drawdown: VBK -59.4% vs VCIT -20.7%.

Should I hold both VBK and VCIT?

VBK and VCIT have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VBK and VCIT?

VBK and VCIT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2561 unique securities.

Which pays a higher dividend, VBK or VCIT?

VBK yields 0.57% while VCIT yields 4.77%, so VCIT currently pays the higher dividend yield.

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