VCIT vs VMLUX
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Limited Term Tax-Exempt Fund admiral class
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 | VMLUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $67.3B | $34.1B | |
| Dividend Yield | 4.77% | 2.89% | |
| Holdings | 2,253 | 7,110 | |
| YTD Return | -0.43% | -0.64% | |
| 1Y Return | +2.34% | -0.36% | |
| 3Y Return (annualized) | +5.82% | +0.81% | |
| 5Y Return (annualized) | +0.84% | -0.58% | |
| Volatility (annualized) | 6.0% | 2.8% | |
| Max Drawdown | -20.7% | -8.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Tax Preferred | |
| Inception | Nov 19, 2009 | Feb 12, 2001 |
VCIT vs VMLUX Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US). Over the past year VCIT returned +2.34% while VMLUX returned -0.36%. Year to date, VCIT is down 0.43% versus a loss of 0.64% for VMLUX.
Over three years, VCIT compounded at +5.82% per year against +0.81% for VMLUX; over five years the annualized figures are +0.84% and -0.58% respectively. Across the full 5-year window we track, VCIT has the edge at +1.75% annualized vs -0.58%. 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 2.8% for VMLUX. 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 -8.5% for VMLUX. 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 0.91. 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 VMLUX charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, VCIT currently yields 4.77% against 2.89% for VMLUX.
Holdings Overlap
VCIT and VMLUX share 0 holdings out of 2934 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 VMLUX?
VCIT has an expense ratio of 0.03% while VMLUX charges 0.09%. VCIT is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VCIT or VMLUX?
Over the past year VCIT returned +2.34% vs -0.36% for VMLUX, so VCIT leads on 1-year performance. Over the longest common window we track (5 years), VCIT annualized +1.75% vs -0.58% for VMLUX. Past performance does not guarantee future results.
Which is riskier, VCIT or VMLUX?
VCIT has been the more volatile fund at 6.0% annualized versus 2.8% for VMLUX. Worst drawdown: VCIT -20.7% vs VMLUX -8.5%.
Should I hold both VCIT and VMLUX?
VCIT and VMLUX have a monthly-return correlation of 0.91, 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 VMLUX?
VCIT and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2934 unique securities.
Which pays a higher dividend, VCIT or VMLUX?
VCIT yields 4.77% while VMLUX yields 2.89%, so VCIT currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.