VCIT vs VOO
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | VCIT | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $67.3B | $979.0B | |
| Dividend Yield | 4.77% | 1.09% | |
| Holdings | 2,253 | 509 | |
| YTD Return | -0.43% | +13.80% | |
| 1Y Return | +2.34% | +23.71% | |
| 3Y Return (annualized) | +5.82% | +21.50% | |
| 5Y Return (annualized) | +0.84% | +13.44% | |
| Volatility (annualized) | 6.0% | 14.1% | |
| Max Drawdown | -20.7% | -34.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Sep 7, 2010 |
VCIT vs VOO Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VCIT returned +2.34% while VOO returned +23.71%. Year to date, VCIT is down 0.43% versus a gain of 13.80% for VOO.
Over three years, VCIT compounded at +5.82% per year against +21.50% for VOO; over five years the annualized figures are +0.84% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs +1.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. 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 VOO charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCIT currently yields 4.77% against 1.09% for VOO.
Holdings Overlap
VCIT and VOO share 3 holdings out of 2521 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VCIT or VOO?
VCIT has an expense ratio of 0.03% while VOO charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VCIT or VOO?
Over the past year VCIT returned +2.34% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VCIT annualized +1.75% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, VCIT or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VOO -34.3%.
Should I hold both VCIT and VOO?
VCIT and VOO 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 VOO?
VCIT and VOO share 3 common holdings with a 0.2% weight overlap. Combined, they hold 2521 unique securities.
Which pays a higher dividend, VCIT or VOO?
VCIT yields 4.77% while VOO yields 1.09%, so VCIT currently pays the higher dividend yield.
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