VCIT vs. BND
Compare and contrast key facts about Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and Vanguard Total Bond Market ETF (BND).
VCIT and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VCIT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 5-10 Year Corp Index. It was launched on Nov 19, 2009. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. Both VCIT and BND are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VCIT or BND.
Performance
VCIT vs. BND - Performance Comparison
Returns By Period
In the year-to-date period, VCIT achieves a 3.31% return, which is significantly higher than BND's 1.66% return. Over the past 10 years, VCIT has outperformed BND with an annualized return of 2.77%, while BND has yielded a comparatively lower 1.39% annualized return.
VCIT
3.31%
-0.79%
4.25%
8.55%
0.94%
2.77%
BND
1.66%
-0.79%
3.22%
6.06%
-0.33%
1.39%
Key characteristics
| VCIT | BND | |
|---|---|---|
| Sharpe Ratio | 1.56 | 1.09 |
| Sortino Ratio | 2.32 | 1.59 |
| Omega Ratio | 1.27 | 1.19 |
| Calmar Ratio | 0.68 | 0.42 |
| Martin Ratio | 6.07 | 3.51 |
| Ulcer Index | 1.45% | 1.75% |
| Daily Std Dev | 5.63% | 5.65% |
| Max Drawdown | -20.56% | -18.84% |
| Current Drawdown | -5.08% | -9.11% |
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VCIT vs. BND - Expense Ratio Comparison
VCIT has a 0.04% expense ratio, which is higher than BND'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%.
Correlation
The correlation between VCIT and BND is 0.87, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
VCIT vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and Vanguard Total Bond Market ETF (BND). 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.
Dividends
VCIT vs. BND - Dividend Comparison
VCIT's dividend yield for the trailing twelve months is around 4.30%, more than BND's 3.57% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.30% | 3.72% | 3.04% | 2.88% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% | 3.34% | 4.00% |
BND Vanguard Total Bond Market ETF | 3.57% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
VCIT vs. BND - Drawdown Comparison
The maximum VCIT drawdown since its inception was -20.56%, which is greater than BND's maximum drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for VCIT and BND. For additional features, visit the drawdowns tool.
Volatility
VCIT vs. BND - Volatility Comparison
Vanguard Intermediate-Term Corporate Bond ETF (VCIT) has a higher volatility of 1.63% compared to Vanguard Total Bond Market ETF (BND) at 1.52%. This indicates that VCIT's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.