VCIT vs VIITX
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class
Which is better, VCIT or VIITX?
Long Term Mid Quality against Intermediate Term Bond.
VIITX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.96.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VCIT | VIITX |
|---|---|---|
| Expense Ratio | 0.03% | 0.02%Best |
| AUM | $69.8B | - |
| Dividend Yield | 4.89% | 4.60% |
| Holdings | 2,271 | 2,599 |
| YTD Price Return | -4.56% | -3.46% |
| 1Y Price Return | -5.03% | -3.69% |
| 3Y Price Return (annualized) | +1.32% | +0.19% |
| 5Y Price Return (annualized) | -3.50% | -2.61% |
| Volatility (annualized) | 7.6% | 4.2%Best |
| Max Drawdown | -22.9% | -14.9%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | Long Term Mid Quality | Intermediate Term Bond |
| Inception | Nov 19, 2009 | Dec 1, 1997 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VCIT currently yields 4.89% and VIITX 4.60%.
Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2021 to Sep 18, 2026 (5 years).
VCIT vs VIITX Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is an 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's price moved -5.03% and VIITX's -3.69%, before the income each one paid out.
Over three years, VCIT compounded at +1.32% per year against +0.19% for VIITX; over five years the annualized figures are -3.50% and -2.61% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VCIT has been the more volatile fund, with annualized monthly volatility of 7.6% 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 -22.9% for VCIT and -14.9% for VIITX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 4.89% against 4.60% for VIITX.
Structure and taxes
VIITX is a mutual fund and VCIT is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 1,364 holdings in VCIT and 1,285 in VIITX, totalling 61.8% and 52.5% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 135 positions appear in both.
The two holdings books were reported 92 days apart, VCIT as of Jul 31, 2026 and VIITX as of Apr 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
135 positions in common, counted across the 1,364 positions we hold weights for in VCIT and 1,285 in VIITX, against full books of 2,271 and 2,599.
Top Shared Holdings
| Stock | Weight in VCIT | Weight in VIITX | Difference |
|---|---|---|---|
| JPM V5.576 07/23/36Jpmorgan Chase & Co 5.58 07/23/2036 | 0.21% | 0.11% | 0.10% |
| AMGN 5.25 03/02/33Amgen Inc 5.25 03/02/2033 | 0.24% | 0.06% | 0.18% |
| PFE 4.75 05/19/33Pfizer Investment Enterprises Pte 4.75% May 19, 2033 | 0.26% | 0.04% | 0.22% |
| BPLN 4.812 02/13/33Bp Cap Mkts Amer 4.812 02/13/2033 | 0.13% | 0.16% | 0.03% |
| BAC V4.571 04/27/33Bank of America Corp Mtn 4.57% Apr 27, 2033 | 0.22% | 0.07% | 0.15% |
| MS V6.342 10/18/33Morgan Stanley Sr Unsec 6.342% 10-18-33/32 | 0.18% | 0.10% | 0.08% |
| JPM V4.912 07/25/33Jpmorgan Chase & Co 4.91% 25Jul2033 | 0.25% | 0.02% | 0.23% |
| BAC V2.972 02/04/33 | 0.18% | 0.07% | 0.11% |
| MS V5.25 04/21/34 MTMorgan Stanley 5.25 04/21/2034 | 0.19% | 0.06% | 0.13% |
| KR 5 09/15/34Kroger Co/The 5% 15Sep2034 | 0.11% | 0.13% | 0.02% |
You are not choosing between two funds in isolation.
Whichever of VCIT and VIITX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $1 a year on a $10,000 investment.
Which is riskier, VCIT or VIITX?
VCIT has been the more volatile fund at 7.6% annualized versus 4.2% for VIITX. Worst drawdown: VCIT -22.9% vs VIITX -14.9%.
Should I hold both VCIT and VIITX?
VCIT and VIITX have a monthly-return correlation of 0.96, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, VCIT or VIITX?
VCIT yields 4.89% while VIITX yields 4.60%, so VCIT currently pays the higher dividend yield.
Is it better to hold VIITX or VCIT in a taxable account?
VCIT is an ETF and VIITX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VIITX better than VCIT?
VIITX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.96. Which one suits a particular account depends on what it is for. This is information, not a recommendation.