VCIT vs VTV

Quick Verdict

VTV delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.

Lower Fees: TiedHigher Returns: VTVMore Diversified: VCIT

Side-by-Side Comparison

MetricVCITVTVWinner
Expense Ratio0.03%0.03%
AUM$67.3B$186.1B
Dividend Yield4.77%2.29%
Holdings2,253311
YTD Return-0.70%+18.60%
1Y Return+2.15%+28.75%
3Y Return (annualized)+6.06%+18.63%
5Y Return (annualized)+0.78%+12.39%
Volatility (annualized)6.0%14.5%
Max Drawdown-20.7%-61.3%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionNov 19, 2009Jan 26, 2004

VCIT vs VTV Performance

Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Value ETF (VTV) is a ETF from Vanguard (US). Over the past year VCIT returned +2.15% while VTV returned +28.75%. Year to date, VCIT is down 0.70% versus a gain of 18.60% for VTV.

Over three years, VCIT compounded at +6.06% per year against +18.63% for VTV; over five years the annualized figures are +0.78% and +12.39% respectively. Across the full 17-year window we track, VTV has the edge at +7.62% annualized vs +1.73%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTV has been the more volatile fund, with annualized monthly volatility of 14.5% 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 -61.3% for VTV. 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VCIT charges 0.03% per year while VTV charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCIT currently yields 4.77% against 2.29% for VTV.

Holdings Overlap

0.2%overlap

VCIT and VTV share 3 holdings out of 2324 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 VTVDifference
GE0.09%0.73%0.64%
AON0.04%0.25%0.21%
CNP0.03%0.11%0.08%

Frequently Asked Questions

Which is cheaper, VCIT or VTV?

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

Which performed better, VCIT or VTV?

Over the past year VCIT returned +2.15% vs +28.75% for VTV, so VTV leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.73% vs +7.62% for VTV. Past performance does not guarantee future results.

Which is riskier, VCIT or VTV?

VTV has been the more volatile fund at 14.5% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VTV -61.3%.

Should I hold both VCIT and VTV?

VCIT and VTV have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VCIT and VTV?

VCIT and VTV share 3 common holdings with a 0.2% weight overlap. Combined, they hold 2324 unique securities.

Which pays a higher dividend, VCIT or VTV?

VCIT yields 4.77% while VTV yields 2.29%, so VCIT currently pays the higher dividend yield.

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