VCIT vs VIITX
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class
Quick Verdict
VIITX has a lower expense ratio. VCIT delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | VCIT | VIITX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.02% | |
| AUM | $67.3B | - | |
| Dividend Yield | 4.77% | 4.56% | |
| Holdings | 2,253 | 2,599 | |
| YTD Return | -0.81% | -2.08% | |
| 1Y Return | +2.13% | -1.49% | |
| 3Y Return (annualized) | +6.03% | +0.49% | |
| 5Y Return (annualized) | +0.76% | -2.31% | |
| Volatility (annualized) | 6.0% | 4.2% | |
| Max Drawdown | -20.7% | -15.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 19, 2009 | Dec 1, 1997 |
VCIT vs VIITX Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US). Over the past year VCIT returned +2.13% while VIITX returned -1.49%. Year to date, VCIT is down 0.81% versus a loss of 2.08% for VIITX.
Over three years, VCIT compounded at +6.03% per year against +0.49% for VIITX; over five years the annualized figures are +0.76% and -2.31% respectively. Across the full 5-year window we track, VCIT has the edge at +1.72% annualized vs -2.31%. 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 4.2% for VIITX. 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 -15.0% for VIITX. 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VCIT charges 0.03% per year while VIITX charges 0.02%. On a $10,000 position that is $3 vs $2 annually, a gap of $1 per year that compounds over a long holding period. On income, VCIT currently yields 4.77% against 4.56% for VIITX.
Holdings Overlap
VCIT and VIITX share 183 holdings out of 3021 unique holdings combined, representing a 6.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VCIT | Weight in VIITX | Difference |
|---|---|---|---|
| JPM V5.576 07/23/36 | 0.23% | 0.11% | 0.12% |
| AMGN 5.25 03/02/33 | 0.25% | 0.07% | 0.18% |
| PFE 4.75 05/19/33 | 0.28% | 0.04% | 0.24% |
| JPM V4.912 07/25/33 | Pro | Pro | Pro |
| BAC V4.571 04/27/33 | Pro | Pro | Pro |
| ABBV 5.05 03/15/34 | Pro | Pro | Pro |
| BAC V2.299 07/21/32 | Pro | Pro | Pro |
| KR 5 09/15/34 | Pro | Pro | Pro |
| BAC V2.687 04/22/32 | Pro | Pro | Pro |
| BPLN 4.812 02/13/33 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, VCIT or VIITX?
VCIT has an expense ratio of 0.03% while VIITX charges 0.02%. VIITX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VCIT or VIITX?
Over the past year VCIT returned +2.13% vs -1.49% for VIITX, so VCIT leads on 1-year performance. Over the longest common window we track (5 years), VCIT annualized +1.72% vs -2.31% for VIITX. Past performance does not guarantee future results.
Which is riskier, VCIT or VIITX?
VCIT has been the more volatile fund at 6.0% annualized versus 4.2% for VIITX. Worst drawdown: VCIT -20.7% vs VIITX -15.0%.
Should I hold both VCIT and VIITX?
VCIT and VIITX have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VCIT and VIITX?
VCIT and VIITX share 183 common holdings with a 6.5% weight overlap. Combined, they hold 3021 unique securities.
Which pays a higher dividend, VCIT or VIITX?
VCIT yields 4.77% while VIITX yields 4.56%, so VCIT currently pays the higher dividend yield.
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