VCIT vs VYM
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VCIT has a lower expense ratio. VYM delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | VCIT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $67.3B | $79.0B | |
| Dividend Yield | 4.77% | 2.86% | |
| Holdings | 2,253 | 568 | |
| YTD Return | -0.43% | +15.80% | |
| 1Y Return | +2.34% | +26.12% | |
| 3Y Return (annualized) | +5.82% | +18.25% | |
| 5Y Return (annualized) | +0.84% | +12.51% | |
| Volatility (annualized) | 6.0% | 14.6% | |
| Max Drawdown | -20.7% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Nov 10, 2006 |
VCIT vs VYM Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VCIT returned +2.34% while VYM returned +26.12%. Year to date, VCIT is down 0.43% versus a gain of 15.80% for VYM.
Over three years, VCIT compounded at +5.82% per year against +18.25% for VYM; over five years the annualized figures are +0.84% and +12.51% respectively. Across the full 17-year window we track, VYM has the edge at +7.07% annualized vs +1.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCIT charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VCIT currently yields 4.77% against 2.86% for VYM.
Holdings Overlap
VCIT and VYM share 1 holdings out of 2576 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VCIT | Weight in VYM | Difference |
|---|---|---|---|
| CNP | 0.03% | 0.12% | 0.09% |
Frequently Asked Questions
Which is cheaper, VCIT or VYM?
VCIT has an expense ratio of 0.03% while VYM charges 0.04%. VCIT is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VCIT or VYM?
Over the past year VCIT returned +2.34% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.75% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, VCIT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VYM -58.8%.
Should I hold both VCIT and VYM?
VCIT and VYM have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCIT and VYM?
VCIT and VYM share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2576 unique securities.
Which pays a higher dividend, VCIT or VYM?
VCIT yields 4.77% while VYM yields 2.86%, so VCIT currently pays the higher dividend yield.
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