VCIT vs. USMV
VCIT (Vanguard Intermediate-Term Corporate Bond ETF) and USMV (iShares MSCI USA Min Vol Factor ETF) are both exchange-traded funds - VCIT is a Corporate Bonds fund tracking the Bloomberg U.S. 5-10 Year Corporate Bond Index, while USMV is a Large Cap Blend Equities fund tracking the MSCI USA Minimum Volatility Index. Both are passively managed. Over the past 10 years, VCIT returned 2.85%/yr vs 9.75%/yr for USMV. At a 0.16 correlation, their price movements are largely independent. VCIT charges 0.03%/yr vs 0.15%/yr for USMV.
Performance
VCIT vs. USMV - Performance Comparison
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Returns By Period
In the year-to-date period, VCIT achieves a -0.26% return, which is significantly lower than USMV's 1.55% return. Over the past 10 years, VCIT has underperformed USMV with an annualized return of 2.85%, while USMV has yielded a comparatively higher 9.75% annualized return.
VCIT
- 1D
- -0.01%
- 1M
- -0.79%
- YTD
- -0.26%
- 6M
- 0.06%
- 1Y
- 5.98%
- 3Y*
- 6.04%
- 5Y*
- 1.04%
- 10Y*
- 2.85%
USMV
- 1D
- -0.43%
- 1M
- 1.28%
- YTD
- 1.55%
- 6M
- 2.27%
- 1Y
- 3.18%
- 3Y*
- 11.35%
- 5Y*
- 7.21%
- 10Y*
- 9.75%
VCIT vs. USMV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCIT Vanguard Intermediate-Term Corporate Bond ETF | -0.26% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
USMV iShares MSCI USA Min Vol Factor ETF | 1.55% | 7.65% | 15.74% | 10.33% | -9.43% | 20.85% | 5.64% | 27.69% | 1.33% | 18.91% |
Correlation
The correlation between VCIT and USMV is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.34 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.33 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.33 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.26 |
Correlation (All Time) Calculated using the full available price history since Oct 21, 2011 | 0.16 |
The correlation between VCIT and USMV shifts across timeframes, from 0.16 (all time) to 0.34 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VCIT vs. USMV — Risk / Return Rank
VCIT
USMV
VCIT vs. USMV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and iShares MSCI USA Min Vol Factor ETF (USMV). 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 | USMV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.11 | ||
| Sortino ratioReturn per unit of downside risk | +1.59 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.07 | +0.20 |
| Calmar ratioReturn relative to maximum drawdown | 2.03 | 0.49 | +1.54 |
| Martin ratioReturn relative to average drawdown | 6.67 | 1.64 | +5.03 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VCIT | USMV | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.48 | 0.37 | +1.11 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.16 | 0.59 | -0.43 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.46 | 0.67 | -0.22 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.75 | 0.86 | -0.11 |
Drawdowns
VCIT vs. USMV - Drawdown Comparison
The maximum VCIT drawdown since its inception was -20.56%, smaller than the maximum USMV drawdown of -33.10%. Use the drawdown chart below to compare losses from any high point for VCIT and USMV.
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Drawdown Indicators
| VCIT | USMV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.56% | -33.10% | +12.54% |
Max Drawdown (1Y)Largest decline over 1 year | -2.96% | -6.46% | +3.50% |
Max Drawdown (3Y)Largest decline over 3 years | -6.11% | -9.36% | +3.25% |
Max Drawdown (5Y)Largest decline over 5 years | -20.56% | -17.93% | -2.63% |
Max Drawdown (10Y)Largest decline over 10 years | -20.56% | -33.10% | +12.54% |
Current DrawdownCurrent decline from peak | -1.79% | -2.24% | +0.45% |
Average DrawdownAverage peak-to-trough decline | -3.16% | -2.88% | -0.28% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.90% | 1.94% | -1.04% |
Volatility
VCIT vs. USMV - Volatility Comparison
The current volatility for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) is 1.39%, while iShares MSCI USA Min Vol Factor ETF (USMV) has a volatility of 2.65%. This indicates that VCIT experiences smaller price fluctuations and is considered to be less risky than USMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCIT | USMV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.39% | 2.65% | -1.26% |
Volatility (6M)Calculated over the trailing 6-month period | 3.10% | 6.02% | -2.92% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.07% | 8.57% | -4.50% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.61% | 12.36% | -5.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.28% | 14.51% | -8.23% |
VCIT vs. USMV - Expense Ratio Comparison
VCIT has a 0.03% expense ratio, which is lower than USMV's 0.15% 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. USMV - Dividend Comparison
VCIT's dividend yield for the trailing twelve months is around 4.82%, more than USMV's 1.54% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
USMV iShares MSCI USA Min Vol Factor ETF | 1.54% | 1.49% | 1.67% | 1.82% | 1.62% | 1.26% | 1.81% | 1.88% | 2.12% | 1.77% | 2.22% | 2.02% |
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
VCIT and USMV have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
USMV has higher volatility (2.65%) compared to VCIT (1.39%). In terms of maximum drawdown, VCIT dropped -20.56% vs USMV's -33.10%.
On 10-year performance, USMV leads with 9.75% vs 2.85% for VCIT. On fees, VCIT is cheaper at 0.03% per year. On volatility, VCIT has been the lower-risk option at 1.39%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, USMV has performed better with a 9.75% return vs 2.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCIT is cheaper with a 0.03% expense ratio, compared with 0.15% for USMV.
VCIT has the higher dividend yield at 4.82%, compared with 1.54% for USMV.
VCIT is categorized as Corporate Bonds, while USMV is Large Cap Blend Equities. VCIT tracks Bloomberg U.S. 5-10 Year Corporate Bond Index, while USMV tracks MSCI USA Minimum Volatility Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VCIT and 0.15% for USMV.
VCIT currently has the higher Sharpe Ratio (1.48 vs 0.37), 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.
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