VCIT vs VTIP
VCIT vs VTIP
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | VCIT | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $67.3B | $19.3B | |
| Dividend Yield | 4.77% | 3.60% | |
| Holdings | 2,253 | 27 | |
| YTD Return | -0.43% | +1.87% | |
| 1Y Return | +2.34% | +3.01% | |
| 3Y Return (annualized) | +5.82% | +5.37% | |
| 5Y Return (annualized) | +0.84% | +3.39% | |
| Volatility (annualized) | 6.0% | 2.4% | |
| Max Drawdown | -20.7% | -7.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 19, 2009 | Oct 12, 2012 |
VCIT vs VTIP Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year VCIT returned +2.34% while VTIP returned +3.01%. Year to date, VCIT is down 0.43% versus a gain of 1.87% for VTIP.
Over three years, VCIT compounded at +5.82% per year against +5.37% for VTIP; over five years the annualized figures are +0.84% and +3.39% respectively. Across the full 14-year window we track, VCIT has the edge at +1.75% annualized vs +1.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VCIT has been the more volatile fund, with annualized monthly volatility of 6.0% compared with 2.4% for VTIP. 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 -7.1% for VTIP. 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCIT charges 0.03% per year while VTIP charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCIT currently yields 4.77% against 3.60% for VTIP.
Holdings Overlap
VCIT and VTIP share 0 holdings out of 2042 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 VTIP?
VCIT has an expense ratio of 0.03% while VTIP charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VCIT or VTIP?
Over the past year VCIT returned +2.34% vs +3.01% for VTIP, so VTIP leads on 1-year performance. Over the longest common window we track (14 years), VCIT annualized +1.75% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, VCIT or VTIP?
VCIT has been the more volatile fund at 6.0% annualized versus 2.4% for VTIP. Worst drawdown: VCIT -20.7% vs VTIP -7.1%.
Should I hold both VCIT and VTIP?
VCIT and VTIP have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCIT and VTIP?
VCIT and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2042 unique securities.
Which pays a higher dividend, VCIT or VTIP?
VCIT yields 4.77% while VTIP yields 3.60%, so VCIT currently pays the higher dividend yield.
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