Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:VCIT) and Vanguard Total Bond Market ETF (NASDAQ:BND) share the same rock-bottom expense ratio, but VCIT offers a higher yield and greater recent returns, while BND stands out for its size, breadth, and lower volatility profile.
Both VCIT and BND target income-focused investors, but they take different approaches: VCIT focuses on investment-grade corporate bonds in the intermediate-maturity range, while BND casts a much wider net across the entire U.S. taxable bond market. This comparison highlights how those differences play out in cost, performance, risk, and portfolio makeup.
Snapshot (cost & size)
| Metric | VCIT | BND |
|---|---|---|
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of 2026-01-30) | 3.7% | 2.5% |
| Dividend yield | 4.6% | 3.9% |
| AUM | $61.8 billion | $384.8 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
Both funds are equally affordable, with expense ratios of just 0.03%, but VCIT delivers a higher payout, offering a 4.6% yield compared to BND’s 3.9%—a notable difference for income-seekers.
Performance & risk comparison
| Metric | VCIT | BND |
|---|---|---|
| Max drawdown (5 y) | (20.56%) | (17.93%) |
| Growth of $1,000 over 5 years | $872 | $850 |
What's inside
Vanguard Total Bond Market ETF provides exposure to the full spectrum of U.S. investment-grade bonds, with a portfolio of some 11,444 bonds as of Feb. 2026 and nearly two decades of history. Its top positions include Vanguard Market Liquidity Fund (Mktliq) 12/31/2049, United States Treasury Note/Bond 4.00% 02/15/2034, and United States Treasury Note/Bond 4.25% 11/15/2034, each representing less than 1.2% of assets. The fund’s broad diversification means it holds a mix of Treasuries, agencies, and corporates, aiming to mirror the entire taxable bond market.
In contrast, Vanguard Intermediate-Term Corporate Bond ETF focuses exclusively on investment-grade corporate debt, holding 2,249 fixed-income investments. Its largest allocations are to Meta Platforms Inc. (META 1.04%) 4.88% 11/15/2035, United States Treasury Note/Bond 4.00% 11/15/2035, and Bank of America Corp. (BAC +1.59%) 5.01% 07/22/2033, all with small weights. While both funds are classified under “Cash & Others” in sector terms, VCIT’s pure corporate focus leads to higher yield and volatility, while BND’s diversified approach smooths out risk across sectors and issuers.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
While both are most concentrated in intermediate-term bonds, these two Vanguard ETFs play different roles in a portfolio. The Vanguard Total Bond Market will offer greater stability, with roughly 70% of the holdings U.S. government bonds.
As of Feb. 3, it had a one-year return of 6.7% and a three-year annualized return of 3.6%. Longer-term, the returns are lower, -0.2% over the past five years and 1.9% across the past 10, on an annualized basis.
The Vanguard Intermediate-Term Corporate Bond ETF has more volatile returns because it invests almost exclusively in corporate bonds. Some 94% of the portfolio is in A or BBB bonds, with 49% in BBB-rated bonds and 45% in A-rated bonds. This is the lower end of the investment-grade spectrum, particularly the BBB bonds, where you get higher returns but more volatility.
But over time, the returns have been considerably better for the Vanguard Intermediate-Term Corporate Bond ETF. It has returned 8.9% over the past year, and for the three- and five-year periods it has returned 5.8% and 1.0% on an annualized basis. Further, its 10-year annualized return is 3.5%.
Plus, both have the same low expense ratio. So, it really depends on what you’re looking for, but over time, the Vanguard Intermediate-Term Corporate Bond ETF has certainly been the better performer.
