VCIT vs VOT

Quick Verdict

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

Lower Fees: VCITHigher Returns: VOTMore Diversified: VCIT

Side-by-Side Comparison

MetricVCITVOTWinner
Expense Ratio0.03%0.05%
AUM$67.3B$19.9B
Dividend Yield4.77%0.65%
Holdings2,253136
YTD Return-0.86%+8.89%
1Y Return+2.08%+8.14%
3Y Return (annualized)+5.97%+15.33%
5Y Return (annualized)+0.79%+5.51%
Volatility (annualized)6.0%18.5%
Max Drawdown-20.7%-60.3%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionNov 19, 2009Aug 17, 2006

VCIT vs VOT Performance

Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Mid-Cap Growth ETF (VOT) is a ETF from Vanguard (US). Over the past year VCIT returned +2.08% while VOT returned +8.14%. Year to date, VCIT is down 0.86% versus a gain of 8.89% for VOT.

Over three years, VCIT compounded at +5.97% per year against +15.33% for VOT; over five years the annualized figures are +0.79% and +5.51% respectively. Across the full 17-year window we track, VOT has the edge at +9.60% annualized vs +1.72%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOT has been the more volatile fund, with annualized monthly volatility of 18.5% 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 VOT. 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 VOT charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, VCIT currently yields 4.77% against 0.65% for VOT.

Holdings Overlap

0.0%overlap

VCIT and VOT share 0 holdings out of 2140 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 VOT?

VCIT has an expense ratio of 0.03% while VOT charges 0.05%. VCIT is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, VCIT or VOT?

Over the past year VCIT returned +2.08% vs +8.14% for VOT, so VOT leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.72% vs +9.60% for VOT. Past performance does not guarantee future results.

Which is riskier, VCIT or VOT?

VOT has been the more volatile fund at 18.5% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VOT -60.3%.

Should I hold both VCIT and VOT?

VCIT and VOT 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 VOT?

VCIT and VOT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2140 unique securities.

Which pays a higher dividend, VCIT or VOT?

VCIT yields 4.77% while VOT yields 0.65%, so VCIT currently pays the higher dividend yield.

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