VCIT vs VGHAX
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Health Care Fund Admiral Shares
Quick Verdict
VCIT has a lower expense ratio. VGHAX delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | VCIT | VGHAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.32% | |
| AUM | $67.3B | $31.8B | |
| Dividend Yield | 4.77% | 1.06% | |
| Holdings | 2,253 | 109 | |
| YTD Return | -0.70% | +2.40% | |
| 1Y Return | +2.15% | +25.63% | |
| 3Y Return (annualized) | +6.06% | -0.60% | |
| 5Y Return (annualized) | +0.78% | -2.58% | |
| Volatility (annualized) | 6.0% | 15.3% | |
| Max Drawdown | -20.7% | -33.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Nov 12, 2001 |
VCIT vs VGHAX Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US). Over the past year VCIT returned +2.15% while VGHAX returned +25.63%. Year to date, VCIT is down 0.70% versus a gain of 2.40% for VGHAX.
Over three years, VCIT compounded at +6.06% per year against -0.60% for VGHAX; over five years the annualized figures are +0.78% and -2.58% respectively. Across the full 5-year window we track, VCIT has the edge at +1.73% annualized vs -2.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGHAX has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -20.7% for VCIT and -33.6% for VGHAX. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCIT charges 0.03% per year while VGHAX charges 0.32%. On a $10,000 position that is $3 vs $32 annually, a gap of $29 per year that compounds over a long holding period. On income, VCIT currently yields 4.77% against 1.06% for VGHAX.
Holdings Overlap
VCIT and VGHAX share 0 holdings out of 2105 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, VCIT or VGHAX?
VCIT has an expense ratio of 0.03% while VGHAX charges 0.32%. VCIT is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, VCIT or VGHAX?
Over the past year VCIT returned +2.15% vs +25.63% for VGHAX, so VGHAX leads on 1-year performance. Over the longest common window we track (5 years), VCIT annualized +1.73% vs -2.58% for VGHAX. Past performance does not guarantee future results.
Which is riskier, VCIT or VGHAX?
VGHAX has been the more volatile fund at 15.3% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VGHAX -33.6%.
Should I hold both VCIT and VGHAX?
VCIT and VGHAX have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCIT and VGHAX?
VCIT and VGHAX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2105 unique securities.
Which pays a higher dividend, VCIT or VGHAX?
VCIT yields 4.77% while VGHAX yields 1.06%, so VCIT currently pays the higher dividend yield.
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