Average Daily Volume
7.62M
Fund Overview
The Vanguard Intermediate-Term Corporate Bond ETF (VCIT) is a fixed-income ETF that provides exposure to U.S. corporate bonds with intermediate maturities. The fund seeks to track the performance of the Bloomberg Barclays U.S. 5-10 Year Corporate Bond Index, which includes investment-grade corporate bonds with maturities between 5 and 10 years. VCIT offers investors a way to gain diversified exposure to the corporate bond market while focusing on intermediate-term securities, which typically balance yield and interest rate risk. With a low expense ratio and broad diversification across sectors, VCIT is a popular choice for income-focused investors looking for steady returns and lower volatility compared to longer-term bonds.
- Asset Class
-
Bond
- Industry
-
Corporate Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 5.18 %
- Currency Hedged
-
No
- Portfolio Turnover
-
72 %
- Dividend Date
-
Why Invest in the VCIT ETF?
Potential Benefits
- Diversified exposure to investment-grade corporate bonds, reducing issuer-specific risk.
- Lower expense ratio compared to many competing corporate bond ETFs, enhancing net returns.
- Intermediate-term focus balances yield potential with interest rate sensitivity.
- High liquidity, making it easy to buy and sell shares with minimal bid-ask spreads.
- Strong historical performance relative to peers in the intermediate corporate bond category.
Potential Risks
- Interest rate risk: Rising rates can negatively impact bond prices, especially for intermediate-term bonds.
- Credit risk: Although investment-grade, corporate bonds carry default risk if issuers face financial distress.
- Market volatility: Economic downturns can lead to wider credit spreads and lower bond prices.
- Lower yield compared to high-yield bonds, potentially limiting income in low-rate environments.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.2%
|
+1.3%
|
-2.0%
|
+0.5%
|
+0.4%
|
+0.2%
|
-1.3%
|
+0.2%
|
-3.0%
|
0.0%
|
-
|
-
|
| 2025 |
+0.7%
|
+1.9%
|
0.0%
|
+0.4%
|
+0.3%
|
+1.9%
|
+0.1%
|
+1.3%
|
+1.2%
|
+0.3%
|
+1.0%
|
-0.2%
|
| 2024 |
0.0%
|
-1.4%
|
+1.2%
|
-2.3%
|
+2.0%
|
+0.7%
|
+2.6%
|
+1.7%
|
+1.6%
|
-2.5%
|
+1.4%
|
-1.6%
|
| 2023 |
+4.2%
|
-3.2%
|
+3.2%
|
+0.7%
|
-1.3%
|
0.0%
|
+0.4%
|
-0.7%
|
-2.6%
|
-1.7%
|
+5.9%
|
+4.1%
|
| 2022 |
-2.5%
|
-1.5%
|
-3.1%
|
-5.0%
|
+1.3%
|
-2.7%
|
+3.9%
|
-3.8%
|
-4.7%
|
-0.4%
|
+4.8%
|
-0.8%
|
| 2021 |
-0.9%
|
-1.6%
|
-1.5%
|
+1.0%
|
+0.6%
|
+1.1%
|
+1.3%
|
-0.3%
|
-1.0%
|
-0.4%
|
-0.3%
|
+0.3%
|
| 2020 |
+2.2%
|
+1.1%
|
-7.3%
|
+5.2%
|
+2.7%
|
+1.9%
|
+2.0%
|
-0.2%
|
-0.4%
|
-0.2%
|
+2.0%
|
+0.6%
|
| 2019 |
+2.8%
|
+0.1%
|
+2.4%
|
+0.5%
|
+1.5%
|
+2.3%
|
+0.3%
|
+2.6%
|
-0.4%
|
+0.7%
|
0.0%
|
+0.5%
|
| 2018 |
-1.2%
|
-1.5%
|
+0.3%
|
-1.1%
|
+0.6%
|
-0.2%
|
+0.8%
|
+0.6%
|
-0.5%
|
-0.9%
|
-0.2%
|
+1.6%
|
| 2017 |
+0.4%
|
+0.9%
|
0.0%
|
+1.2%
|
+1.0%
|
-0.1%
|
+1.0%
|
+0.8%
|
-0.4%
|
+0.2%
|
-0.3%
|
+0.5%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: VCIT vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
VCIT seeks to track the Bloomberg Barclays U.S. 5-10 Year Corporate Bond Index, which includes investment-grade corporate bonds with maturities between 5 and 10 years. The index is market-cap weighted, meaning larger issuers have a greater influence on performance. The fund primarily holds bonds issued by U.S. corporations across various sectors, including financials, industrials, and utilities. VCIT is passively managed and rebalances periodically to align with the index composition. The fund avoids derivatives, instead holding physical bonds to replicate the index.
Frequently Asked Questions
What is the average duration of VCIT?
VCIT has an average duration of approximately 6-7 years, meaning it is moderately sensitive to interest rate changes.
Does VCIT pay monthly dividends?
Yes, VCIT distributes dividends monthly, providing regular income to investors.
How does VCIT compare to Vanguard’s Total Bond Market ETF (BND)?
VCIT focuses solely on intermediate-term corporate bonds, whereas BND includes a broader mix of government, corporate, and mortgage-backed securities across all maturities.
Is VCIT a good choice for retirees?
VCIT can be suitable for retirees seeking income, but they should consider their risk tolerance, as corporate bonds carry more credit risk than government bonds.
Industry Overview
The Vanguard Intermediate-Term Corporate Bond ETF (VCIT) provides exposure to the U.S. investment-grade corporate bond market, a key segment of the fixed-income universe. Corporate bonds are debt securities issued by companies to raise capital, offering higher yields than government bonds but with additional credit risk. The intermediate-term segment (5-10 years) is favored by investors seeking a balance between yield and interest rate sensitivity. VCIT tracks a broad index, ensuring diversified exposure across industries and issuers. This ETF is well-suited for investors looking for steady income with moderate risk in their fixed-income allocation.
Alternative Comparison
Compared to LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF), VCIT has a slightly lower expense ratio and a narrower maturity focus (5-10 years vs. LQD’s broader range). While LQD includes bonds of all maturities, VCIT’s intermediate-term focus may appeal to investors seeking a balance between yield and duration risk. Another peer, IGIB (iShares Intermediate-Term Corporate Bond ETF), is similar in maturity but has a marginally higher expense ratio than VCIT. Vanguard’s cost advantage and reputation for efficiency make VCIT a strong contender in the intermediate corporate bond space.
Issuer Overview
Vanguard is one of the largest and most respected asset managers globally, known for its low-cost index funds and ETFs. The firm emphasizes long-term investing, broad diversification, and investor-friendly fee structures. Vanguard’s fixed-income ETFs, including VCIT, are widely used by both individual and institutional investors for their transparency, liquidity, and cost efficiency.
Conclusion
VCIT is a well-established ETF offering cost-efficient exposure to intermediate-term investment-grade corporate bonds. Its low expense ratio, broad diversification, and intermediate maturity focus make it a compelling choice for income-seeking investors who want to mitigate interest rate risk while earning steady returns. While not without risks—such as credit and rate sensitivity—VCIT remains a core holding for many fixed-income portfolios.
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