VCIT vs VWIUX
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Intermediate Term Tax-Exempt Fund admiral class
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 | VWIUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $67.3B | $86.3B | |
| Dividend Yield | 4.77% | 3.05% | |
| Holdings | 2,253 | 15,066 | |
| YTD Return | -0.37% | -1.23% | |
| 1Y Return | +2.11% | +1.26% | |
| 3Y Return (annualized) | +6.17% | +0.57% | |
| 5Y Return (annualized) | +0.77% | -1.72% | |
| Volatility (annualized) | 6.0% | 5.4% | |
| Max Drawdown | -20.7% | -16.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Tax Preferred | |
| Inception | Nov 19, 2009 | Feb 12, 2001 |
VCIT vs VWIUX Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Intermediate Term Tax-Exempt Fund admiral class (VWIUX) is a mutual fund from Vanguard (US). Over the past year VCIT returned +2.11% while VWIUX returned +1.26%. Year to date, VCIT is down 0.37% versus a loss of 1.23% for VWIUX.
Over three years, VCIT compounded at +6.17% per year against +0.57% for VWIUX; over five years the annualized figures are +0.77% and -1.72% respectively. Across the full 5-year window we track, VCIT has the edge at +1.75% annualized vs -1.72%. 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 5.4% for VWIUX. 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 -16.1% for VWIUX. 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VCIT charges 0.03% per year while VWIUX charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, VCIT currently yields 4.77% against 3.05% for VWIUX.
Holdings Overlap
VCIT and VWIUX share 0 holdings out of 3782 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 VWIUX?
VCIT has an expense ratio of 0.03% while VWIUX charges 0.09%. VCIT is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VCIT or VWIUX?
Over the past year VCIT returned +2.11% vs +1.26% for VWIUX, so VCIT leads on 1-year performance. Over the longest common window we track (5 years), VCIT annualized +1.75% vs -1.72% for VWIUX. Past performance does not guarantee future results.
Which is riskier, VCIT or VWIUX?
VCIT has been the more volatile fund at 6.0% annualized versus 5.4% for VWIUX. Worst drawdown: VCIT -20.7% vs VWIUX -16.1%.
Should I hold both VCIT and VWIUX?
VCIT and VWIUX have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VCIT and VWIUX?
VCIT and VWIUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3782 unique securities.
Which pays a higher dividend, VCIT or VWIUX?
VCIT yields 4.77% while VWIUX yields 3.05%, so VCIT currently pays the higher dividend yield.
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