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Dividend Vision

ETF Comparison

BND vs VCIT: A Bond Core, or a Corporate Sleeve?

A head-to-head of Vanguard's Total Bond Market ETF and Intermediate-Term Corporate Bond ETF covering credit, cost, and duration.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • BNDInvestors who want fixed-income ballast that steadies the portfolio when stocks fall.
  • VCITInvestors who want higher current income (5.23% vs 4.26% for BND).

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

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

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

BND has outpaced VCIT over the trailing twelve months, posting a -2.04% total return against -2.65%. The picture flips over 10 years, though — VCIT has compounded at 2.31% a year, ahead of BND at 1.10%. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Nov 2009Volatility Sharpe Sortino Max drawdown
BND-2.63%-2.04%4.29%-0.71%1.10%2.23%5.1%-0.06-0.08-4.7%
VCIT-3.41%-2.65%6.00%0.26%2.31%3.98%5.4%0.250.36-4.9%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Nov 2009” measures every fund from November 23, 2009 — the start of shared available history — 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricBNDVCIT
Full nameVanguard Total Bond Market ETFVanguard Intermediate-Term Corporate Bond ETF
IssuerVanguardVanguard
Underlying indexBloomberg U.S. Aggregate Float Adjusted IndexUSD investment-grade intermediate-term corporate bonds
Last Close$69.94 as of October 2, 2026$77.98 as of October 2, 2026
Distribution rate4.26%5.23%
Trailing 12-month yield4.20%5.12%
Distribution Safety Score™ 100100
Safety-Adjusted Yield 4.26%5.23%
Expense ratio0.03%0.03%
AUM$162B$67.3B
Distribution frequencyMonthlyMonthly
ObjectiveTrack 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 classFixed IncomeFixed Income
Inception date04/03/200711/19/2009
Beta0.981.07
Last dividend$0.2485 declared, pays 10/05/2026$0.34 declared, pays 10/05/2026
Ex-dividend date10/01/202610/01/2026

Bottom lineChoose BND if you want fixed-income ballast that steadies the portfolio when stocks fall. Choose VCIT if you want higher current income (5.23% vs 4.26% for BND).

BND vs VCIT: total bond market or corporates?

BND is the broad investment-grade market. VCIT is intermediate corporates. Credit mix is the decision.

BNDVCIT
What it holdsBloomberg U.S. Aggregate Float Adjusted IndexUSD investment-grade intermediate-term corporate bonds
Expense ratio0.03%0.03%
Distribution rate4.26%5.23%
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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Vanguard
ETFs116
Total AUM$4676B

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

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

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

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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 5.23% vs 4.26% for BND. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

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

BND is the larger fund by assets ($162B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, BND would generate roughly $35.50 cash per distribution, while VCIT would produce $43.58 cash per distribution, at current distribution rates. Both pay monthly distributions.

BND yield4.26%
VCIT yield5.23%
Cash diff on $10K$8.08

Cost & efficiency

Over 10 years on $10,000, BND would cost approximately $30 in fees vs $30 for VCIT (simplified, not compounded). Both charge the same expense ratio.

BND ER0.03%
VCIT ER0.03%

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, making BND the less volatile of the two by this measure.

BND beta0.98
VCIT beta1.07

Fund details

BND is managed by Vanguard (launched 04/03/2007) with $162B in assets. VCIT is managed by Vanguard (launched 11/19/2009) with $67.3B in assets.

BND AUM$162B
VCIT AUM$67.3B
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Frequently asked questions

What is the difference between BND and VCIT?

BND (Vanguard Total Bond Market ETF) holds the broad US investment-grade bond market, including Treasuries and corporates. VCIT (Vanguard Intermediate-Term Corporate Bond ETF) holds intermediate-term investment-grade corporates. Cost is 0.03% versus 0.03%; distributions are 4.26% and 5.23% as of October 2026. Credit mix and duration are the decision.

What is the current distribution rate for BND and VCIT?

BND currently distributes 4.26% and VCIT 5.23%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

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.

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.

Is BND or VCIT safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: BND scores 100, VCIT scores 100. Neither has a clear safety edge on that measure. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, BND or VCIT?

BND and VCIT both charge the same expense ratio of 0.03%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.

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

At current rates, $10,000 in BND would generate roughly $35.50 cash per distribution ($426.00 annually). The same in VCIT would produce about $43.58 cash per distribution ($523.00 annually).

Which has performed better historically, BND or VCIT?

BND has outpaced VCIT over the trailing twelve months, posting a -2.04% total return against -2.65%. The picture flips over 10 years, though — VCIT has compounded at 2.31% a year, ahead of BND at 1.10%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

BND vs VCIT — at a glance

Generated October 3, 2026.

Overview

BND and VCIT are both Vanguard bond ETFs with identical expense ratios, but they track fundamentally different markets. BND offers broad exposure to the entire U.S. bond market—Treasuries, investment-grade corporates, mortgage-backed securities, and asset-backed securities—while VCIT focuses narrowly on intermediate-term corporate bonds. The yield gap between them reflects that narrower, higher-yielding corporate focus.

How they differ

BND tracks a comprehensive bond market index and holds a mix of government, corporate, and mortgage-backed securities, whereas VCIT isolates investment-grade corporate bonds with intermediate maturities. This strategy difference drives the first meaningful distinction: VCIT's distribution rate sits at 5.23%, about 97 basis points higher than BND's 4.26%, because corporate bond yields exceed broad-market averages.

Beyond yield, credit risk and interest-rate sensitivity differ. VCIT's beta of 1.07 is slightly higher than BND's 0.98, suggesting VCIT moves a bit more with broader rate moves; more importantly, VCIT carries credit risk tied to corporate issuer health, while BND's diversification across Treasuries and securitized debt dampens that single-issuer concern.

Who each is best for

  • BND: Fits investors seeking a single-fund core bond allocation that mirrors the overall U.S. fixed-income market, including duration exposure to government securities and mortgage risk alongside corporate debt.
  • VCIT: Designed for investors comfortable taking on corporate credit risk in exchange for higher current yield and willing to concentrate portfolio weight in the intermediate-term corporate segment rather than the whole bond market.

Key risks to know

  • Interest-rate sensitivity and duration mismatch. BND's broad mix of maturities and security types creates a different duration profile than VCIT's intermediate corporate focus. A steeper or flatter yield curve will affect each differently; investors should verify the current duration of either fund matches their rate-outlook stance.
  • Credit spread widening. VCIT's exclusive corporate exposure means it absorbs all credit-cycle risk in the intermediate corporate market. During recession fears or financial stress, corporate bond spreads can widen sharply, pressuring VCIT's NAV more than BND's diversified portfolio would.
  • Prepayment risk in mortgage-backed securities. BND's inclusion of mortgage-backed and asset-backed securities introduces prepayment risk—when rates fall, homeowners refinance, forcing BND to reinvest principal at lower yields. VCIT avoids this risk entirely.
  • Concentration in a narrower market segment. VCIT's restriction to intermediate corporates means it misses yield opportunities in longer-dated or shorter-dated corporate bonds and has no exposure to the Treasury or securitized markets, which can outperform during risk-off periods.

Bottom line

If you want a foundational bond holding that captures the full U.S. fixed-income market with lower credit risk, BND's 4.26% yield and broad diversification stand out. If you prioritize current income and are comfortable with corporate credit exposure, VCIT's 5.23% and tighter focus offer a higher payout. Past performance does not predict future results, and interest-rate moves and credit spreads will heavily influence relative returns going forward.

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

Learn the method

The metrics behind this comparison, explained in the Academy.

Bond fund basics How to read a fund's stats Why total return beats chasing yield

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These comparisons follow the Dividend Vision methodology.