VBCC vs. VCIT

Last updated Jun 6, 2026

VBCC (Vanguard Target Maturity 2029 Corporate Bond ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both Corporate Bonds funds from Vanguard - VBCC tracks the ICE 2029 Maturity US Corporate Constrained Index while VCIT tracks the Bloomberg U.S. 5-10 Year Corporate Bond Index. Both are passively managed. Their correlation of 0.92 suggests significant overlap in exposure. VBCC charges 0.08%/yr vs 0.03%/yr for VCIT.

Performance

VBCC vs. VCIT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Maturity 2029 Corporate Bond ETF (VBCC) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VBCC

• 1D: -0.32%
• 1M: -0.37%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VCIT

• 1D: -0.56%
• 1M: -0.75%
• YTD: -0.25%
• 6M: -0.07%
• 1Y: 5.51%
• 3Y*: 5.87%
• 5Y*: 1.13%
• 10Y*: 2.89%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VBCC vs. VCIT - Yearly Performance Comparison

	2026 (YTD)
VBCC Vanguard Target Maturity 2029 Corporate Bond ETF	0.85%
VCIT Vanguard Intermediate-Term Corporate Bond ETF	1.11%

Correlation

The correlation between VBCC and VCIT is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Mar 27, 2026	0.92

Return for Risk

VBCC vs. VCIT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VCIT

VCIT Risk / Return Rank: 39
VCIT Sharpe Ratio Rank: 39
VCIT Sortino Ratio Rank: 39
VCIT Omega Ratio Rank: 37
VCIT Calmar Ratio Rank: 39
VCIT Martin Ratio Rank: 40

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VBCC vs. VCIT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Maturity 2029 Corporate Bond ETF (VBCC) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	VBCC	VCIT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.35	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.17	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.46	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.05	0.75	+1.30

Drawdowns

VBCC vs. VCIT - Drawdown Comparison

The maximum VBCC drawdown since its inception was -0.79%, smaller than the maximum VCIT drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for VBCC and VCIT.

Drawdown Indicators

	VBCC	VCIT	Difference
Max Drawdown Largest peak-to-trough decline	-0.79%	-20.56%	+19.77%
Max Drawdown (1Y) Largest decline over 1 year	—	-2.96%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-6.11%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-20.56%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-20.56%	—
Current Drawdown Current decline from peak	-0.51%	-1.78%	+1.27%
Average Drawdown Average peak-to-trough decline	-0.24%	-3.16%	+2.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.89%	—

Volatility

Volatility by Period

	VBCC	VCIT	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.42%	—
Volatility (6M) Calculated over the trailing 6-month period	—	3.10%	—
Volatility (1Y) Calculated over the trailing 1-year period	2.21%	4.11%	-1.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.21%	6.61%	-4.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.21%	6.28%	-4.07%

VBCC vs. VCIT - Expense Ratio Comparison

VBCC has a 0.08% expense ratio, which is higher than VCIT's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VBCC vs. VCIT - Dividend Comparison

VBCC's dividend yield for the trailing twelve months is around 0.45%, less than VCIT's 4.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBCC Vanguard Target Maturity 2029 Corporate Bond ETF	0.45%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VCIT Vanguard Intermediate-Term Corporate Bond ETF	4.82%	4.62%	4.43%	3.72%	3.03%	2.87%	2.78%	3.37%	3.61%	3.21%	3.29%	3.34%

Frequently Asked Questions

Can I hold both VBCC and VCIT in my portfolio?

With a correlation of 0.92, VBCC and VCIT move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which ETF is better, VBCC or VCIT?

On fees, VCIT is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VBCC or VCIT?

VCIT is cheaper with a 0.03% expense ratio, compared with 0.08% for VBCC.

Which ETF pays a higher dividend yield, VBCC or VCIT?

VCIT has the higher dividend yield at 4.82%, compared with 0.45% for VBCC.

What is the main difference between VBCC and VCIT?

VBCC tracks ICE 2029 Maturity US Corporate Constrained Index, while VCIT tracks Bloomberg U.S. 5-10 Year Corporate Bond Index. Their fees differ too: 0.08% for VBCC and 0.03% for VCIT.