VCIT vs VONG

Quick Verdict

VCIT has a lower expense ratio. VONG delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.

Lower Fees: VCITHigher Returns: VONGMore Diversified: VCIT

Side-by-Side Comparison

MetricVCITVONGWinner
Expense Ratio0.03%0.06%
AUM$67.3B$44.9B
Dividend Yield4.77%0.54%
Holdings2,253390
YTD Return-0.81%+5.03%
1Y Return+2.13%+11.57%
3Y Return (annualized)+6.03%+22.20%
5Y Return (annualized)+0.76%+12.72%
Volatility (annualized)6.0%15.9%
Max Drawdown-20.7%-32.7%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionNov 19, 2009Sep 20, 2010

VCIT vs VONG Performance

Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Russell 1000 Growth ETF (VONG) is a ETF from Vanguard (US). Over the past year VCIT returned +2.13% while VONG returned +11.57%. Year to date, VCIT is down 0.81% versus a gain of 5.03% for VONG.

Over three years, VCIT compounded at +6.03% per year against +22.20% for VONG; over five years the annualized figures are +0.76% and +12.72% respectively. Across the full 16-year window we track, VONG has the edge at +15.73% annualized vs +1.72%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VONG has been the more volatile fund, with annualized monthly volatility of 15.9% 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 -32.7% for VONG. 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VCIT charges 0.03% per year while VONG charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, VCIT currently yields 4.77% against 0.54% for VONG.

Holdings Overlap

0.1%overlap

VCIT and VONG share 2 holdings out of 2403 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VCITWeight in VONGDifference
GE0.09%0.97%0.88%
AON0.04%0.19%0.15%

Frequently Asked Questions

Which is cheaper, VCIT or VONG?

VCIT has an expense ratio of 0.03% while VONG charges 0.06%. VCIT is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, VCIT or VONG?

Over the past year VCIT returned +2.13% vs +11.57% for VONG, so VONG leads on 1-year performance. Over the longest common window we track (16 years), VCIT annualized +1.72% vs +15.73% for VONG. Past performance does not guarantee future results.

Which is riskier, VCIT or VONG?

VONG has been the more volatile fund at 15.9% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VONG -32.7%.

Should I hold both VCIT and VONG?

VCIT and VONG have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VCIT and VONG?

VCIT and VONG share 2 common holdings with a 0.1% weight overlap. Combined, they hold 2403 unique securities.

Which pays a higher dividend, VCIT or VONG?

VCIT yields 4.77% while VONG yields 0.54%, so VCIT currently pays the higher dividend yield.

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