VCIT vs VGIT
VCIT vs VGIT
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Intermediate Term Treasury ETF
Quick Verdict
VCIT delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | VCIT | VGIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $67.3B | $42.1B | |
| Dividend Yield | 4.77% | 3.84% | |
| Holdings | 2,253 | 106 | |
| YTD Return | -0.43% | -0.62% | |
| 1Y Return | +2.34% | +1.32% | |
| 3Y Return (annualized) | +5.82% | +3.60% | |
| 5Y Return (annualized) | +0.84% | -0.12% | |
| Volatility (annualized) | 6.0% | 4.3% | |
| Max Drawdown | -20.7% | -17.2% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 19, 2009 | Nov 19, 2009 |
VCIT vs VGIT Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US). Over the past year VCIT returned +2.34% while VGIT returned +1.32%. Year to date, VCIT is down 0.43% versus a loss of 0.62% for VGIT.
Over three years, VCIT compounded at +5.82% per year against +3.60% for VGIT; over five years the annualized figures are +0.84% and -0.12% respectively. Across the full 17-year window we track, VCIT has the edge at +1.75% annualized vs +0.75%. 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 4.3% for VGIT. 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 -17.2% for VGIT. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VCIT charges 0.03% per year while VGIT charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCIT currently yields 4.77% against 3.84% for VGIT.
Holdings Overlap
VCIT and VGIT share 0 holdings out of 2103 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 VGIT?
VCIT has an expense ratio of 0.03% while VGIT charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VCIT or VGIT?
Over the past year VCIT returned +2.34% vs +1.32% for VGIT, so VCIT leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.75% vs +0.75% for VGIT. Past performance does not guarantee future results.
Which is riskier, VCIT or VGIT?
VCIT has been the more volatile fund at 6.0% annualized versus 4.3% for VGIT. Worst drawdown: VCIT -20.7% vs VGIT -17.2%.
Should I hold both VCIT and VGIT?
VCIT and VGIT have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCIT and VGIT?
VCIT and VGIT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2103 unique securities.
Which pays a higher dividend, VCIT or VGIT?
VCIT yields 4.77% while VGIT yields 3.84%, so VCIT currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.