VCIT vs. VYM

Last updated Jun 4, 2026

VCIT (Vanguard Intermediate-Term Corporate Bond ETF) and VYM (Vanguard High Dividend Yield ETF) are both exchange-traded funds - VCIT is a Corporate Bonds fund tracking the Barclays U.S. 5-10 Year Corp Index, while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. Both are passively managed. Over the past 10 years, VCIT returned 2.93%/yr vs 11.90%/yr for VYM. At a 0.01 correlation, their price movements are largely independent. Both charge a 0.04% expense ratio.

Performance

VCIT vs. VYM - Performance Comparison

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

Returns By Period

In the year-to-date period, VCIT achieves a 0.18% return, which is significantly lower than VYM's 12.47% return. Over the past 10 years, VCIT has underperformed VYM with an annualized return of 2.93%, while VYM has yielded a comparatively higher 11.90% 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%

VYM

• 1D: -0.43%
• 1M: 3.38%
• YTD: 12.47%
• 6M: 12.01%
• 1Y: 26.16%
• 3Y*: 18.88%
• 5Y*: 11.48%
• 10Y*: 11.90%

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

VCIT vs. VYM - 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%
VYM Vanguard High Dividend Yield ETF	12.47%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%

Correlation

The correlation between VCIT and VYM is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.25
Correlation (10Y) Calculated over the trailing 10-year period	0.13
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009	0.01

Over the past year, VCIT and VYM have become more correlated (0.39) than their long-term average of 0.01, meaning their price movements have been converging.

Return for Risk

VCIT vs. VYM — 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

VYM

VYM Risk / Return Rank: 77
VYM Sharpe Ratio Rank: 77
VYM Sortino Ratio Rank: 80
VYM Omega Ratio Rank: 76
VYM Calmar Ratio Rank: 76
VYM Martin Ratio Rank: 75

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. VYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and Vanguard High Dividend Yield ETF (VYM). 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	VYM	Difference
Sharpe ratio Return per unit of total volatility	1.50	2.56	-1.06
Sortino ratio Return per unit of downside risk	2.22	3.65	-1.43
Omega ratio Gain probability vs. loss probability	1.27	1.46	-0.20
Calmar ratio Return relative to maximum drawdown	2.08	3.93	-1.84
Martin ratio Return relative to average drawdown	6.95	14.76	-7.81
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. VYM - Sharpe Ratio Comparison

The current VCIT Sharpe Ratio is 1.50, which is lower than the VYM Sharpe Ratio of 2.56. The chart below compares the historical Sharpe Ratios of VCIT and VYM, 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	VYM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.50	2.56	-1.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.19	0.83	-0.64
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.73	-0.26
Sharpe Ratio (All Time) Calculated using the full available price history	0.75	0.51	+0.24

Drawdowns

VCIT vs. VYM - Drawdown Comparison

The maximum VCIT drawdown since its inception was -20.56%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for VCIT and VYM.

Drawdown Indicators

	VCIT	VYM	Difference
Max Drawdown Largest peak-to-trough decline	-20.56%	-56.98%	+36.42%
Max Drawdown (1Y) Largest decline over 1 year	-2.96%	-6.69%	+3.73%
Max Drawdown (3Y) Largest decline over 3 years	-6.11%	-14.46%	+8.35%
Max Drawdown (5Y) Largest decline over 5 years	-20.56%	-15.84%	-4.72%
Max Drawdown (10Y) Largest decline over 10 years	-20.56%	-35.21%	+14.65%
Current Drawdown Current decline from peak	-1.36%	-0.43%	-0.93%
Average Drawdown Average peak-to-trough decline	-3.16%	-7.19%	+4.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	1.78%	-0.90%

Volatility

VCIT vs. VYM - Volatility Comparison

The current volatility for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) is 1.38%, while Vanguard High Dividend Yield ETF (VYM) has a volatility of 2.77%. This indicates that VCIT experiences smaller price fluctuations and is considered to be less risky than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCIT	VYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.38%	2.77%	-1.39%
Volatility (6M) Calculated over the trailing 6-month period	3.06%	7.67%	-4.61%
Volatility (1Y) Calculated over the trailing 1-year period	4.10%	10.28%	-6.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.61%	13.96%	-7.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.28%	16.34%	-10.06%

VCIT vs. VYM - Expense Ratio Comparison

Both VCIT and VYM have an expense ratio of 0.04%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VCIT vs. VYM - Dividend Comparison

VCIT's dividend yield for the trailing twelve months is around 4.80%, more than VYM's 2.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VYM Vanguard High Dividend Yield ETF	2.19%	2.44%	2.74%	3.12%	3.01%	2.76%	3.18%	3.03%	3.40%	2.80%	2.91%	3.22%

Frequently Asked Questions

Can I hold both VCIT and VYM in my portfolio?

VCIT and VYM have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VCIT or VYM?

VYM has higher volatility (2.77%) compared to VCIT (1.38%). In terms of maximum drawdown, VCIT dropped -20.56% vs VYM's -56.98%.

Which ETF is better, VCIT or VYM?

On 10-year performance, VYM leads with 11.90% vs 2.93% for VCIT. Both ETFs have the same 0.04% expense ratio. On volatility, VCIT has been the lower-risk option at 1.38%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VCIT or VYM?

Over the 10-year period, VYM has performed better with a 11.90% return vs 2.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VCIT or VYM?

VCIT and VYM have the same expense ratio: 0.04% per year.

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

VCIT has the higher dividend yield at 4.80%, compared with 2.19% for VYM.

What is the main difference between VCIT and VYM?

VCIT is categorized as Corporate Bonds, while VYM is Dividend. VCIT tracks Barclays U.S. 5-10 Year Corp Index, while VYM tracks FTSE High Dividend Yield Index.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.56 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.