VCIT vs VIG
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Dividend Appreciation ETF
Quick Verdict
VCIT has a lower expense ratio. VIG delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | VCIT | VIG | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $67.3B | $110.2B | |
| Dividend Yield | 4.77% | 1.79% | |
| Holdings | 2,253 | 335 | |
| YTD Return | -0.43% | +12.07% | |
| 1Y Return | +2.34% | +20.98% | |
| 3Y Return (annualized) | +5.82% | +16.55% | |
| 5Y Return (annualized) | +0.84% | +10.94% | |
| Volatility (annualized) | 6.0% | 13.3% | |
| Max Drawdown | -20.7% | -48.2% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Apr 21, 2006 |
VCIT vs VIG Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Dividend Appreciation ETF (VIG) is a ETF from Vanguard (US). Over the past year VCIT returned +2.34% while VIG returned +20.98%. Year to date, VCIT is down 0.43% versus a gain of 12.07% for VIG.
Over three years, VCIT compounded at +5.82% per year against +16.55% for VIG; over five years the annualized figures are +0.84% and +10.94% respectively. Across the full 17-year window we track, VIG has the edge at +8.69% annualized vs +1.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VIG has been the more volatile fund, with annualized monthly volatility of 13.3% 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 -48.2% for VIG. 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCIT charges 0.03% per year while VIG charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VCIT currently yields 4.77% against 1.79% for VIG.
Holdings Overlap
VCIT and VIG share 1 holdings out of 2349 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VCIT | Weight in VIG | Difference |
|---|---|---|---|
| AON | 0.04% | 0.31% | 0.27% |
Frequently Asked Questions
Which is cheaper, VCIT or VIG?
VCIT has an expense ratio of 0.03% while VIG charges 0.04%. VCIT is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VCIT or VIG?
Over the past year VCIT returned +2.34% vs +20.98% for VIG, so VIG leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.75% vs +8.69% for VIG. Past performance does not guarantee future results.
Which is riskier, VCIT or VIG?
VIG has been the more volatile fund at 13.3% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VIG -48.2%.
Should I hold both VCIT and VIG?
VCIT and VIG have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCIT and VIG?
VCIT and VIG share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2349 unique securities.
Which pays a higher dividend, VCIT or VIG?
VCIT yields 4.77% while VIG yields 1.79%, so VCIT currently pays the higher dividend yield.
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