VCIT vs VV

Quick Verdict

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

Lower Fees: TiedHigher Returns: VVMore Diversified: VCIT

Side-by-Side Comparison

MetricVCITVVWinner
Expense Ratio0.03%0.03%
AUM$67.3B$52.5B
Dividend Yield4.77%1.25%
Holdings2,253446
YTD Return-0.43%+13.62%
1Y Return+2.34%+23.22%
3Y Return (annualized)+5.82%+21.70%
5Y Return (annualized)+0.84%+12.98%
Volatility (annualized)6.0%14.8%
Max Drawdown-20.7%-56.0%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionNov 19, 2009Jan 27, 2004

VCIT vs VV Performance

Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Large-Cap ETF (VV) is a ETF from Vanguard (US). Over the past year VCIT returned +2.34% while VV returned +23.22%. Year to date, VCIT is down 0.43% versus a gain of 13.62% for VV.

Over three years, VCIT compounded at +5.82% per year against +21.70% for VV; over five years the annualized figures are +0.84% and +12.98% respectively. Across the full 17-year window we track, VV has the edge at +9.53% annualized vs +1.75%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VV has been the more volatile fund, with annualized monthly volatility of 14.8% 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 -56.0% for VV. 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 VV charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCIT currently yields 4.77% against 1.25% for VV.

Holdings Overlap

0.2%overlap

VCIT and VV share 3 holdings out of 2447 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 VVDifference
GE0.09%0.62%0.53%
AON0.04%0.11%0.07%
CNP0.03%0.05%0.02%

Frequently Asked Questions

Which is cheaper, VCIT or VV?

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

Which performed better, VCIT or VV?

Over the past year VCIT returned +2.34% vs +23.22% for VV, so VV leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.75% vs +9.53% for VV. Past performance does not guarantee future results.

Which is riskier, VCIT or VV?

VV has been the more volatile fund at 14.8% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VV -56.0%.

Should I hold both VCIT and VV?

VCIT and VV 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 VV?

VCIT and VV share 3 common holdings with a 0.2% weight overlap. Combined, they hold 2447 unique securities.

Which pays a higher dividend, VCIT or VV?

VCIT yields 4.77% while VV yields 1.25%, so VCIT currently pays the higher dividend yield.

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