VCIT vs VT
VCIT vs VT
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Total World Stock ETF
Quick Verdict
VCIT has a lower expense ratio. VT delivered stronger 1-year returns. VT offers more diversification with 8927 holdings.
Side-by-Side Comparison
| Metric | VCIT | VT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $67.3B | $77.6B | |
| Dividend Yield | 4.77% | 1.61% | |
| Holdings | 2,253 | 10,133 | |
| YTD Return | -0.43% | +14.19% | |
| 1Y Return | +2.34% | +25.25% | |
| 3Y Return (annualized) | +5.82% | +20.36% | |
| 5Y Return (annualized) | +0.84% | +11.17% | |
| Volatility (annualized) | 6.0% | 16.6% | |
| Max Drawdown | -20.7% | -50.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Jun 24, 2008 |
VCIT vs VT Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Total World Stock ETF (VT) is a ETF from Vanguard (US). Over the past year VCIT returned +2.34% while VT returned +25.25%. Year to date, VCIT is down 0.43% versus a gain of 14.19% for VT.
Over three years, VCIT compounded at +5.82% per year against +20.36% for VT; over five years the annualized figures are +0.84% and +11.17% respectively. Across the full 17-year window we track, VT has the edge at +7.37% annualized vs +1.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VT has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -50.6% for VT. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCIT charges 0.03% per year while VT 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 1.61% for VT.
Holdings Overlap
VCIT and VT share 3 holdings out of 10943 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VCIT or VT?
VCIT has an expense ratio of 0.03% while VT 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 VT?
Over the past year VCIT returned +2.34% vs +25.25% for VT, so VT leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.75% vs +7.37% for VT. Past performance does not guarantee future results.
Which is riskier, VCIT or VT?
VT has been the more volatile fund at 16.6% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VT -50.6%.
Should I hold both VCIT and VT?
VCIT and VT have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCIT and VT?
VCIT and VT share 3 common holdings with a 0.1% weight overlap. Combined, they hold 10943 unique securities.
Which pays a higher dividend, VCIT or VT?
VCIT yields 4.77% while VT yields 1.61%, so VCIT currently pays the higher dividend yield.
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