VBCJ vs. VCIT

Last updated Jun 6, 2026

VBCJ (Vanguard Target Maturity 2036 Corporate Bond ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both Corporate Bonds funds from Vanguard - VBCJ tracks the ICE 2036 Maturity US Corporate Constrained Index while VCIT tracks the Bloomberg U.S. 5-10 Year Corporate Bond Index. Both are passively managed. With a 0.98 correlation, they move nearly in lockstep. VBCJ charges 0.08%/yr vs 0.03%/yr for VCIT.

Performance

VBCJ vs. VCIT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Maturity 2036 Corporate Bond ETF (VBCJ) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VBCJ

• 1D: -0.66%
• 1M: -0.91%
• 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)

VBCJ vs. VCIT - Yearly Performance Comparison

	2026 (YTD)
VBCJ Vanguard Target Maturity 2036 Corporate Bond ETF	1.19%
VCIT Vanguard Intermediate-Term Corporate Bond ETF	1.11%

Correlation

The correlation between VBCJ and VCIT is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (All Time) Calculated using the full available price history since Mar 27, 2026	0.98

Return for Risk

VBCJ 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.

VBCJ vs. VCIT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Maturity 2036 Corporate Bond ETF (VBCJ) 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

	VBCJ	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	1.08	0.75	+0.33

Drawdowns

VBCJ vs. VCIT - Drawdown Comparison

The maximum VBCJ drawdown since its inception was -2.50%, smaller than the maximum VCIT drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for VBCJ and VCIT.

Drawdown Indicators

	VBCJ	VCIT	Difference
Max Drawdown Largest peak-to-trough decline	-2.50%	-20.56%	+18.06%
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	-1.29%	-1.78%	+0.49%
Average Drawdown Average peak-to-trough decline	-0.67%	-3.16%	+2.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.89%	—

Volatility

Volatility by Period

	VBCJ	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	5.87%	4.11%	+1.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.87%	6.61%	-0.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.87%	6.28%	-0.41%

VBCJ vs. VCIT - Expense Ratio Comparison

VBCJ 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

VBCJ vs. VCIT - Dividend Comparison

VBCJ's dividend yield for the trailing twelve months is around 0.91%, less than VCIT's 4.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBCJ Vanguard Target Maturity 2036 Corporate Bond ETF	0.91%	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 VBCJ and VCIT in my portfolio?

With a correlation of 0.98, VBCJ 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, VBCJ 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, VBCJ or VCIT?

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

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

VCIT has the higher dividend yield at 4.82%, compared with 0.91% for VBCJ.

What is the main difference between VBCJ and VCIT?

VBCJ tracks ICE 2036 Maturity US Corporate Constrained Index, while VCIT tracks Bloomberg U.S. 5-10 Year Corporate Bond Index. Their fees differ too: 0.08% for VBCJ and 0.03% for VCIT.