VCIT vs. GVI

Last updated Jun 4, 2026

VCIT (Vanguard Intermediate-Term Corporate Bond ETF) and GVI (iShares Intermediate Government/Credit Bond ETF) are both exchange-traded funds - VCIT is a Corporate Bonds fund tracking the Barclays U.S. 5-10 Year Corp Index, while GVI is a Short-Term Bond fund tracking the Bloomberg U.S. Intermediate Government/Credit Bond. Both are passively managed. Over the past 10 years, VCIT returned 2.93%/yr vs 1.80%/yr for GVI. Their correlation of 0.82 suggests significant overlap in exposure. VCIT charges 0.04%/yr vs 0.20%/yr for GVI.

Performance

VCIT vs. GVI - Performance Comparison

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

Returns By Period

Over the past 10 years, VCIT has outperformed GVI with an annualized return of 2.93%, while GVI has yielded a comparatively lower 1.80% annualized return.

VCIT

• 1D: -0.22%
• 1M: 0.28%
• YTD: 0.18%
• 6M: 0.07%
• 1Y: 6.13%
• 3Y*: 6.00%
• 5Y*: 1.22%
• 10Y*: 2.93%

GVI

• 1D: -0.13%
• 1M: -0.00%
• YTD: -0.00%
• 6M: 0.05%
• 1Y: 3.89%
• 3Y*: 4.18%
• 5Y*: 0.98%
• 10Y*: 1.80%

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

VCIT vs. GVI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VCIT Vanguard Intermediate-Term Corporate Bond ETF	0.18%	9.34%	3.20%	8.98%	-13.98%	-1.77%	9.46%	14.10%	-1.74%	5.31%
GVI iShares Intermediate Government/Credit Bond ETF	-0.00%	6.66%	2.92%	5.15%	-8.28%	-1.90%	6.38%	6.54%	0.77%	1.83%

Correlation

The correlation between VCIT and GVI is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009	0.82

The correlation between VCIT and GVI shifts across timeframes, from 0.82 (all time) to 0.93 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

VCIT vs. GVI — Risk / Return Rank

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

VCIT

VCIT Risk / Return Rank: 42
VCIT Sharpe Ratio Rank: 42
VCIT Sortino Ratio Rank: 43
VCIT Omega Ratio Rank: 40
VCIT Calmar Ratio Rank: 41
VCIT Martin Ratio Rank: 42

GVI

GVI Risk / Return Rank: 44
GVI Sharpe Ratio Rank: 44
GVI Sortino Ratio Rank: 49
GVI Omega Ratio Rank: 44
GVI Calmar Ratio Rank: 44
GVI Martin Ratio Rank: 41

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.

VCIT vs. GVI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and iShares Intermediate Government/Credit Bond ETF (GVI). 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.

	VCIT	GVI	Difference
Sharpe ratio Return per unit of total volatility	1.50	1.56	-0.06
Sortino ratio Return per unit of downside risk	2.22	2.39	-0.17
Omega ratio Gain probability vs. loss probability	1.27	1.28	-0.02
Calmar ratio Return relative to maximum drawdown	2.08	2.17	-0.09
Martin ratio Return relative to average drawdown	6.95	6.60	+0.35
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VCIT vs. GVI - Sharpe Ratio Comparison

The current VCIT Sharpe Ratio is 1.50, which is comparable to the GVI Sharpe Ratio of 1.56. The chart below compares the historical Sharpe Ratios of VCIT and GVI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VCIT	GVI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.50	1.56	-0.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.19	0.25	-0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.51	-0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.75	0.76	-0.01

Drawdowns

VCIT vs. GVI - Drawdown Comparison

The maximum VCIT drawdown since its inception was -20.56%, which is greater than GVI's maximum drawdown of -12.93%. Use the drawdown chart below to compare losses from any high point for VCIT and GVI.

Drawdown Indicators

	VCIT	GVI	Difference
Max Drawdown Largest peak-to-trough decline	-20.56%	-12.93%	-7.63%
Max Drawdown (1Y) Largest decline over 1 year	-2.96%	-1.79%	-1.17%
Max Drawdown (3Y) Largest decline over 3 years	-6.11%	-2.65%	-3.46%
Max Drawdown (5Y) Largest decline over 5 years	-20.56%	-12.93%	-7.63%
Max Drawdown (10Y) Largest decline over 10 years	-20.56%	-12.93%	-7.63%
Current Drawdown Current decline from peak	-1.36%	-1.17%	-0.19%
Average Drawdown Average peak-to-trough decline	-3.16%	-1.86%	-1.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	0.59%	+0.29%

Volatility

VCIT vs. GVI - Volatility Comparison

Vanguard Intermediate-Term Corporate Bond ETF (VCIT) has a higher volatility of 1.38% compared to iShares Intermediate Government/Credit Bond ETF (GVI) at 0.77%. This indicates that VCIT's price experiences larger fluctuations and is considered to be riskier than GVI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCIT	GVI	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.38%	0.77%	+0.61%
Volatility (6M) Calculated over the trailing 6-month period	3.06%	1.78%	+1.28%
Volatility (1Y) Calculated over the trailing 1-year period	4.10%	2.50%	+1.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.61%	3.97%	+2.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.28%	3.53%	+2.75%

VCIT vs. GVI - Expense Ratio Comparison

VCIT has a 0.04% expense ratio, which is lower than GVI's 0.20% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VCIT vs. GVI - Dividend Comparison

VCIT's dividend yield for the trailing twelve months is around 4.80%, more than GVI's 3.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GVI iShares Intermediate Government/Credit Bond ETF	3.62%	3.48%	3.40%	2.75%	1.86%	1.46%	1.84%	2.29%	2.16%	1.91%	1.77%	1.75%
VCIT Vanguard Intermediate-Term Corporate Bond ETF	4.80%	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 VCIT and GVI in my portfolio?

With a correlation of 0.93, VCIT and GVI 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 is riskier, VCIT or GVI?

VCIT has higher volatility (1.38%) compared to GVI (0.77%). In terms of maximum drawdown, VCIT dropped -20.56% vs GVI's -12.93%.

Which ETF is better, VCIT or GVI?

On 10-year performance, VCIT leads with 2.93% vs 1.80% for GVI. On fees, VCIT is cheaper at 0.04% per year. On volatility, GVI has been the lower-risk option at 0.77%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VCIT or GVI?

Over the 10-year period, VCIT has performed better with a 2.93% return vs 1.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VCIT or GVI?

VCIT is cheaper with a 0.04% expense ratio, compared with 0.20% for GVI.

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

VCIT has the higher dividend yield at 4.80%, compared with 3.62% for GVI.

What is the main difference between VCIT and GVI?

VCIT is categorized as Corporate Bonds, while GVI is Short-Term Bond. VCIT tracks Barclays U.S. 5-10 Year Corp Index, while GVI tracks Bloomberg U.S. Intermediate Government/Credit Bond. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VCIT and 0.20% for GVI.

Which has better risk-adjusted returns?

GVI currently has the higher Sharpe Ratio (1.56 vs 1.50), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.