VCIT vs VTILX
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Total International Bond II Index Fund Class Institutional
Quick Verdict
VCIT has a lower expense ratio. VCIT delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | VCIT | VTILX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.07% | |
| AUM | $67.3B | $142.6B | |
| Dividend Yield | 4.77% | 4.12% | |
| Holdings | 2,253 | 7,391 | |
| YTD Return | -0.81% | -1.15% | |
| 1Y Return | +2.13% | -3.20% | |
| 3Y Return (annualized) | +6.03% | -0.40% | |
| 5Y Return (annualized) | +0.76% | - | |
| Volatility (annualized) | 6.0% | 6.0% | |
| Max Drawdown | -20.7% | -15.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 19, 2009 | Feb 17, 2021 |
VCIT vs VTILX Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Total International Bond II Index Fund Class Institutional (VTILX) is a mutual fund from Vanguard (US). Over the past year VCIT returned +2.13% while VTILX returned -3.20%. Year to date, VCIT is down 0.81% versus a loss of 1.15% for VTILX.
Over three years, VCIT compounded at +6.03% per year against -0.40% for VTILX. Across the full 5-year window we track, VCIT has the edge at +1.72% annualized vs -2.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTILX has been the more volatile fund, with annualized monthly volatility of 6.0% 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 -15.3% for VTILX. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VCIT charges 0.03% per year while VTILX charges 0.07%. On a $10,000 position that is $3 vs $7 annually, a gap of $4 per year that compounds over a long holding period. On income, VCIT currently yields 4.77% against 4.12% for VTILX.
Holdings Overlap
VCIT and VTILX share 4 holdings out of 3474 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VCIT | Weight in VTILX | Difference |
|---|---|---|---|
| WSTP 2.15 06/03/31 | 0.07% | 0.00% | 0.07% |
| RY 5 05/02/33 GMTN | 0.03% | 0.02% | 0.01% |
| MUFG V5.406 04/19/34 | 0.03% | 0.00% | 0.03% |
| ORIX 2.25 03/09/31 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, VCIT or VTILX?
VCIT has an expense ratio of 0.03% while VTILX charges 0.07%. VCIT is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, VCIT or VTILX?
Over the past year VCIT returned +2.13% vs -3.20% for VTILX, so VCIT leads on 1-year performance. Over the longest common window we track (5 years), VCIT annualized +1.72% vs -2.86% for VTILX. Past performance does not guarantee future results.
Which is riskier, VCIT or VTILX?
VTILX has been the more volatile fund at 6.0% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VTILX -15.3%.
Should I hold both VCIT and VTILX?
VCIT and VTILX have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCIT and VTILX?
VCIT and VTILX share 4 common holdings with a 0.0% weight overlap. Combined, they hold 3474 unique securities.
Which pays a higher dividend, VCIT or VTILX?
VCIT yields 4.77% while VTILX yields 4.12%, so VCIT currently pays the higher dividend yield.
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