VCIT vs VXF
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Extended Market ETF
Quick Verdict
VCIT has a lower expense ratio. VXF delivered stronger 1-year returns. VXF offers more diversification with 2462 holdings.
Side-by-Side Comparison
| Metric | VCIT | VXF | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $67.3B | $31.6B | |
| Dividend Yield | 4.77% | 1.21% | |
| Holdings | 2,253 | 3,376 | |
| YTD Return | -0.81% | +17.47% | |
| 1Y Return | +2.13% | +27.53% | |
| 3Y Return (annualized) | +6.03% | +19.37% | |
| 5Y Return (annualized) | +0.76% | +6.93% | |
| Volatility (annualized) | 6.0% | 18.7% | |
| Max Drawdown | -20.7% | -59.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Dec 27, 2001 |
VCIT vs VXF Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Extended Market ETF (VXF) is a ETF from Vanguard (US). Over the past year VCIT returned +2.13% while VXF returned +27.53%. Year to date, VCIT is down 0.81% versus a gain of 17.47% for VXF.
Over three years, VCIT compounded at +6.03% per year against +19.37% for VXF; over five years the annualized figures are +0.76% and +6.93% respectively. Across the full 17-year window we track, VXF has the edge at +9.08% annualized vs +1.72%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXF has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -59.4% for VXF. 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCIT charges 0.03% per year while VXF charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, VCIT currently yields 4.77% against 1.21% for VXF.
Holdings Overlap
VCIT and VXF share 0 holdings out of 4481 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 VXF?
VCIT has an expense ratio of 0.03% while VXF charges 0.05%. VCIT is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VCIT or VXF?
Over the past year VCIT returned +2.13% vs +27.53% for VXF, so VXF leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.72% vs +9.08% for VXF. Past performance does not guarantee future results.
Which is riskier, VCIT or VXF?
VXF has been the more volatile fund at 18.7% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VXF -59.4%.
Should I hold both VCIT and VXF?
VCIT and VXF have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCIT and VXF?
VCIT and VXF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4481 unique securities.
Which pays a higher dividend, VCIT or VXF?
VCIT yields 4.77% while VXF yields 1.21%, so VCIT currently pays the higher dividend yield.
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