VCIT vs VUG
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Growth ETF
Quick Verdict
VUG delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | VCIT | VUG | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $67.3B | $223.2B | |
| Dividend Yield | 4.77% | 0.47% | |
| Holdings | 2,253 | 155 | |
| YTD Return | -0.43% | +10.57% | |
| 1Y Return | +2.34% | +18.21% | |
| 3Y Return (annualized) | +5.82% | +24.26% | |
| 5Y Return (annualized) | +0.84% | +13.05% | |
| Volatility (annualized) | 6.0% | 16.5% | |
| Max Drawdown | -20.7% | -51.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Jan 26, 2004 |
VCIT vs VUG Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year VCIT returned +2.34% while VUG returned +18.21%. Year to date, VCIT is down 0.43% versus a gain of 10.57% for VUG.
Over three years, VCIT compounded at +5.82% per year against +24.26% for VUG; over five years the annualized figures are +0.84% and +13.05% respectively. Across the full 17-year window we track, VUG has the edge at +11.30% annualized vs +1.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUG has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -51.4% for VUG. 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCIT charges 0.03% per year while VUG charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCIT currently yields 4.77% against 0.47% for VUG.
Holdings Overlap
VCIT and VUG share 1 holdings out of 2164 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VCIT | Weight in VUG | Difference |
|---|---|---|---|
| GE | 0.09% | 0.55% | 0.46% |
Frequently Asked Questions
Which is cheaper, VCIT or VUG?
VCIT has an expense ratio of 0.03% while VUG charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VCIT or VUG?
Over the past year VCIT returned +2.34% vs +18.21% for VUG, so VUG leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.75% vs +11.30% for VUG. Past performance does not guarantee future results.
Which is riskier, VCIT or VUG?
VUG has been the more volatile fund at 16.5% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VUG -51.4%.
Should I hold both VCIT and VUG?
VCIT and VUG have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCIT and VUG?
VCIT and VUG share 1 common holdings with a 0.1% weight overlap. Combined, they hold 2164 unique securities.
Which pays a higher dividend, VCIT or VUG?
VCIT yields 4.77% while VUG yields 0.47%, so VCIT currently pays the higher dividend yield.
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