VCIT vs VO
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Mid-Cap ETF
Quick Verdict
VO delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | VCIT | VO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $67.3B | $105.9B | |
| Dividend Yield | 4.77% | 1.53% | |
| Holdings | 2,253 | 293 | |
| YTD Return | -0.43% | +13.82% | |
| 1Y Return | +2.34% | +18.00% | |
| 3Y Return (annualized) | +5.82% | +15.98% | |
| 5Y Return (annualized) | +0.84% | +8.06% | |
| Volatility (annualized) | 6.0% | 16.9% | |
| Max Drawdown | -20.7% | -60.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Jan 26, 2004 |
VCIT vs VO Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Mid-Cap ETF (VO) is a ETF from Vanguard (US). Over the past year VCIT returned +2.34% while VO returned +18.00%. Year to date, VCIT is down 0.43% versus a gain of 13.82% for VO.
Over three years, VCIT compounded at +5.82% per year against +15.98% for VO; over five years the annualized figures are +0.84% and +8.06% respectively. Across the full 17-year window we track, VO has the edge at +9.21% annualized vs +1.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VO has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -60.3% for VO. 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCIT charges 0.03% per year while VO charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCIT currently yields 4.77% against 1.53% for VO.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, VCIT or VO?
VCIT has an expense ratio of 0.03% while VO charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VCIT or VO?
Over the past year VCIT returned +2.34% vs +18.00% for VO, so VO leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.75% vs +9.21% for VO. Past performance does not guarantee future results.
Which is riskier, VCIT or VO?
VO has been the more volatile fund at 16.9% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VO -60.3%.
Should I hold both VCIT and VO?
VCIT and VO have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCIT and VO?
VCIT and VO share 2 common holdings with a 0.1% weight overlap. Combined, they hold 2296 unique securities.
Which pays a higher dividend, VCIT or VO?
VCIT yields 4.77% while VO yields 1.53%, so VCIT currently pays the higher dividend yield.
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