ETF Comparison

BND vs VCIT: Which Is the Better Pick in 2026?

A head-to-head comparison of Vanguard Total Bond Market ETF and Vanguard Intermediate-Term Corporate Bond ETF covering yield, cost, risk, and income potential.

Data updated July 21, 2026

Vanguard

ETFs116

Total AUM$4488B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on BND and VCIT.

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Side-by-side snapshot

	BND	VCIT
Full name	Vanguard Total Bond Market ETF	Vanguard Intermediate-Term Corporate Bond ETF
Issuer	Vanguard	Vanguard
Last Close	$72.68 as of July 21, 2026	$81.71 as of July 21, 2026
Distribution yield	4.04%	4.88%
Distribution Safety Score™	100	97
Expense ratio	0.03%	0.04%
AUM	$161B	$67.8B
Distribution frequency	Monthly	Monthly
Underlying index	Bloomberg U.S. Aggregate Float Adjusted Index	USD investment-grade intermediate-term corporate bonds
Objective	Track the Bloomberg U.S. Aggregate Float Adjusted Index for broad U.S. bond exposure.	Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset class	Fixed Income	Fixed Income
Inception date	04/03/2007	11/19/2009
Beta	0.98	1.07
Last dividend	$0.2445	$0.3320
Ex-dividend date	07/01/2026	07/01/2026

Bottom lineChoose BND if you want fixed-income ballast that steadies the portfolio when stocks fall. Choose VCIT if you want higher current income (4.88% vs 4.04% for BND).

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

BND has outpaced VCIT over the trailing twelve months, posting a 3.47% total return against 3.46%. The picture flips over 10 years, though — VCIT has compounded at 2.67% a year, ahead of BND at 1.40%. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Nov 2009	Volatility	Sharpe	Sortino	Max drawdown
BND	0.12%	3.47%	3.85%	-0.34%	1.40%	2.43%	5.2%	-0.13	-0.19	-5.6%
VCIT	-0.48%	3.46%	5.65%	0.70%	2.67%	4.22%	5.5%	0.19	0.27	-6.0%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 20, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Nov 2009” measures every fund from November 23, 2009 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

BND (Vanguard Total Bond Market ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both monthly-pay dividend ETFs, but they take different approaches.

VCIT offers the higher yield at 4.88% vs 4.04% for BND. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

BND is cheaper with an expense ratio of 0.03% compared to 0.04%.

They track different benchmarks: BND is linked to Bloomberg U.S. Aggregate Float Adjusted Index while VCIT tracks USD investment-grade intermediate-term corporate bonds, which means their performance drivers differ.

BND is the larger fund by assets ($161B), which generally means tighter spreads and better liquidity.

Who should choose each?

Choose BND

Vanguard Total Bond Market ETF

Want fixed-income ballast that cushions equity drawdowns.
Want to keep costs low — a 0.03% expense ratio vs 0.04% for VCIT.

Choose VCIT

Vanguard Intermediate-Term Corporate Bond ETF

Want higher current income — VCIT yields 4.88% vs 4.04% for BND.
Want fixed-income ballast that cushions equity drawdowns.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

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Deep dive

Yield & income

On a $10,000 investment, BND would generate roughly $33.67/month, while VCIT would produce $40.67/month, at current distribution rates. Both pay monthly distributions.

BND yield4.04%

VCIT yield4.88%

Monthly diff on $10K$7.00

Cost & efficiency

Over 10 years on $10,000, BND would cost approximately $30 in fees vs $40 for VCIT (simplified, not compounded). The $10.00 difference may be offset by yield or performance.

BND ER0.03%

VCIT ER0.04%

Strategy & risk

BND tracks Bloomberg U.S. Aggregate Float Adjusted Index with a bonds approach, while VCIT tracks USD investment-grade intermediate-term corporate bonds with a bonds approach. Beta is 0.98 for BND and 1.07 for VCIT, indicating BND is less volatile relative to the market.

BND beta0.98

VCIT beta1.07

Fund details

BND is managed by Vanguard (launched 04/03/2007) with $161B in assets. VCIT is managed by Vanguard (launched 11/19/2009) with $67.8B in assets.

BND AUM$161B

VCIT AUM$67.8B

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Frequently asked questions

Is BND or VCIT better for dividend income?

It depends on your goals. VCIT currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between BND and VCIT?

BND (Vanguard Total Bond Market ETF) tracks Bloomberg U.S. Aggregate Float Adjusted Index with a bonds approach, while VCIT (Vanguard Intermediate-Term Corporate Bond ETF) tracks USD investment-grade intermediate-term corporate bonds with a bonds approach. They are issued by Vanguard and Vanguard respectively.

Can I hold both BND and VCIT?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Which has lower fees, BND or VCIT?

BND has an expense ratio of 0.03% while VCIT charges 0.04%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in BND vs VCIT generate?

At current rates, $10,000 in BND would generate roughly $33.67 per month ($404.00 annually). The same in VCIT would produce about $40.67 per month ($488.00 annually).

Which has performed better historically, BND or VCIT?

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BND vs VCIT — at a glance

Generated July 2026 from current fund data.

Overview

BND and VCIT are both Vanguard bond ETFs that track investment-grade fixed-income indexes, but they serve different roles in a fixed-income portfolio. BND holds the full U.S. bond market—Treasuries, mortgages, corporates, and agencies—while VCIT focuses exclusively on intermediate-term corporate bonds. The difference is one of breadth versus concentration: BND is a core holding; VCIT is a tactical tilt toward credit.

How they differ

BND tracks the entire Bloomberg U.S. Aggregate Float Adjusted Index, giving it exposure across government, corporate, and mortgage-backed securities with an effective duration matched to the broad market. VCIT holds only investment-grade corporate bonds with intermediate maturity, which narrows its scope but raises its yield. That yield gap—4.87% versus 4.03%—reflects the credit premium VCIT captures by excluding low-yielding Treasuries and agencies. Both charge minimal fees (0.03% and 0.04% respectively), so the cost difference is negligible. BND is larger at $158B in AUM; VCIT holds $66.2B. Both distribute monthly and carry similar interest-rate sensitivity, though VCIT's beta of 1.07 suggests marginally higher volatility than BND's 0.98.

Who each is best for

BND: Fits investors seeking a single, diversified bond holding that tracks the entire taxable bond market, with minimal expense drag and liquidity from $158B in assets.

VCIT: Fits investors who want to overweight investment-grade corporate credit relative to the market-cap index, accepting higher interest-rate risk in exchange for a higher current yield.

Key risks to know

Interest-rate sensitivity divergence: VCIT's focus on intermediate corporates and higher beta (1.07) means it will fall more sharply than BND when rates rise, and recover more slowly. Investors using VCIT as a core bond allocation risk overstating their duration exposure.

Credit spread compression: VCIT's yield advantage depends partly on the corporate credit spread—the extra return investors demand for holding corporate debt instead of Treasuries. If spreads tighten, VCIT's outperformance over BND narrows, and if spreads widen during stress, VCIT will underperform.

Concentration in investment-grade corporates: VCIT excludes government and mortgage-backed securities, which reduces diversification during periods when credit stress decouples from broader bond-market movements. Holdings overlap between the funds may be significant; verify the corporate holdings each fund owns.

Reinvestment risk on distributions: Both funds pay monthly distributions. If rates remain elevated, reinvesting those monthly coupons at similar yields will support returns; if rates fall, reinvestment drag could be material.

Bottom line

BND offers broad, diversified exposure to the entire U.S. bond market with the lowest possible fees; VCIT concentrates on investment-grade corporates and trades higher interest-rate sensitivity for an 84 basis-point yield advantage. Your choice hinges on whether you want a foundational bond allocation that mirrors the market, or a more targeted bet on corporate credit premiums. Past performance does not predict future returns.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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