VCIT vs VIPIX
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Inflation Protected Securities Fund Insti Shs
Quick Verdict
VCIT has a lower expense ratio. VCIT delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | VCIT | VIPIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.07% | |
| AUM | $67.3B | $12.5B | |
| Dividend Yield | 4.77% | 3.54% | |
| Holdings | 2,253 | 63 | |
| YTD Return | -0.81% | -1.07% | |
| 1Y Return | +2.13% | -3.24% | |
| 3Y Return (annualized) | +6.03% | -0.50% | |
| 5Y Return (annualized) | +0.76% | -4.77% | |
| Volatility (annualized) | 6.0% | 6.7% | |
| Max Drawdown | -20.7% | -24.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 19, 2009 | Dec 12, 2003 |
VCIT vs VIPIX Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Inflation Protected Securities Fund Insti Shs (VIPIX) is a mutual fund from Vanguard (US). Over the past year VCIT returned +2.13% while VIPIX returned -3.24%. Year to date, VCIT is down 0.81% versus a loss of 1.07% for VIPIX.
Over three years, VCIT compounded at +6.03% per year against -0.50% for VIPIX; over five years the annualized figures are +0.76% and -4.77% respectively. Across the full 5-year window we track, VCIT has the edge at +1.72% annualized vs -4.77%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VIPIX has been the more volatile fund, with annualized monthly volatility of 6.7% 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 -24.5% for VIPIX. 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VCIT charges 0.03% per year while VIPIX charges 0.07%. On a $10,000 position that is $3 vs $7 annually, a gap of $4 per year that compounds over a long holding period. On income, VCIT currently yields 4.77% against 3.54% for VIPIX.
Holdings Overlap
VCIT and VIPIX share 0 holdings out of 2074 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 VIPIX?
VCIT has an expense ratio of 0.03% while VIPIX charges 0.07%. VCIT is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, VCIT or VIPIX?
Over the past year VCIT returned +2.13% vs -3.24% for VIPIX, so VCIT leads on 1-year performance. Over the longest common window we track (5 years), VCIT annualized +1.72% vs -4.77% for VIPIX. Past performance does not guarantee future results.
Which is riskier, VCIT or VIPIX?
VIPIX has been the more volatile fund at 6.7% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VIPIX -24.5%.
Should I hold both VCIT and VIPIX?
VCIT and VIPIX have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCIT and VIPIX?
VCIT and VIPIX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2074 unique securities.
Which pays a higher dividend, VCIT or VIPIX?
VCIT yields 4.77% while VIPIX yields 3.54%, so VCIT currently pays the higher dividend yield.
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