VCIT vs VTI

Quick Verdict

VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: TiedHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricVCITVTIWinner
Expense Ratio0.03%0.03%
AUM$67.3B$663.5B
Dividend Yield4.77%1.07%
Holdings2,2533,543
YTD Return-0.81%+13.87%
1Y Return+2.13%+23.31%
3Y Return (annualized)+6.03%+21.17%
5Y Return (annualized)+0.76%+12.23%
Volatility (annualized)6.0%15.3%
Max Drawdown-20.7%-56.6%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionNov 19, 2009May 24, 2001

VCIT vs VTI Performance

Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VCIT returned +2.13% while VTI returned +23.31%. Year to date, VCIT is down 0.81% versus a gain of 13.87% for VTI.

Over three years, VCIT compounded at +6.03% per year against +21.17% for VTI; over five years the annualized figures are +0.76% and +12.23% respectively. Across the full 17-year window we track, VTI has the edge at +8.13% annualized vs +1.72%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VCIT charges 0.03% per year while VTI charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCIT currently yields 4.77% against 1.07% for VTI.

Holdings Overlap

0.2%overlap

VCIT and VTI share 3 holdings out of 4799 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VCITWeight in VTIDifference
GE0.09%0.54%0.45%
AON0.04%0.09%0.05%
CNP0.03%0.04%0.01%

Frequently Asked Questions

Which is cheaper, VCIT or VTI?

VCIT has an expense ratio of 0.03% while VTI charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, VCIT or VTI?

Over the past year VCIT returned +2.13% vs +23.31% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.72% vs +8.13% for VTI. Past performance does not guarantee future results.

Which is riskier, VCIT or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VTI -56.6%.

Should I hold both VCIT and VTI?

VCIT and VTI have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VCIT and VTI?

VCIT and VTI share 3 common holdings with a 0.2% weight overlap. Combined, they hold 4799 unique securities.

Which pays a higher dividend, VCIT or VTI?

VCIT yields 4.77% while VTI yields 1.07%, so VCIT currently pays the higher dividend yield.

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