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.

Data updated August 19, 2026

Best for

BNDInvestors who want fixed-income ballast that steadies the portfolio when stocks fall.
VCITInvestors who want higher current income (5.06% vs 4.18% 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 2.54% total return against 2.50%. The picture flips over 10 years, though — VCIT has compounded at 2.61% a year, ahead of BND at 1.35%. 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.
Symbol	YTD	1Y	3Y	5Y	10Y	Since Nov 2009	Volatility	Sharpe	Sortino	Max drawdown
BND	-0.04%	2.54%	4.69%	-0.30%	1.35%	2.41%	5.2%	0.02	0.03	-4.7%
VCIT	-0.43%	2.50%	6.52%	0.79%	2.61%	4.20%	5.4%	0.34	0.49	-5.1%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 19, 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	BND	VCIT
Full name	Vanguard Total Bond Market ETF	Vanguard Intermediate-Term Corporate Bond ETF
Issuer	Vanguard	Vanguard
Last Close	$72.22 as of August 19, 2026	$81.07 as of August 19, 2026
Distribution yield	4.18%	5.06%
Distribution Safety Score™	100	100
Expense ratio	0.03%	0.03%
AUM	$162B	$67.9B
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	$0.2515	$0.3420
Ex-dividend date	08/03/2026	08/03/2026

Bottom lineChoose BND if you want fixed-income ballast that steadies the portfolio when stocks fall. Choose VCIT if you want higher current income (5.06% vs 4.18% 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.

	BND	VCIT
What it holds	Bloomberg U.S. Aggregate Float Adjusted Index	USD investment-grade intermediate-term corporate bonds
Expense ratio	0.03%	0.03%
Distribution yield	4.18%	5.06%

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Vanguard

ETFs116

Total AUM$4703B

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.

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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 5.06% vs 4.18% for BND. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

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 ($162B), which generally means tighter spreads and better liquidity.

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Deep dive

Yield & income

On a $10,000 investment, BND would generate roughly $34.83/month, while VCIT would produce $42.17/month, at current distribution rates. Both pay monthly distributions.

BND yield4.18%

VCIT yield5.06%

Monthly diff on $10K$7.33

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 $67.9B in assets.

BND AUM$162B

VCIT AUM$67.9B

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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 4.18% and 5.06% as of August 2026. Credit mix and duration are the decision.

What is the current distribution yield for BND and VCIT?

BND currently distributes 4.18% and VCIT 5.06%, based on fund data updated August 2026. Distribution yield 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 $34.83 per month ($418.00 annually). The same in VCIT would produce about $42.17 per month ($506.00 annually).

Which has performed better historically, BND or VCIT?

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BND vs VCIT — at a glance

Generated August 15, 2026.

Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.

Overview

BND and VCIT are both Vanguard bond ETFs offering monthly distributions, but they target different segments of the fixed-income market. BND tracks the broad Bloomberg U.S. Aggregate Index—a mix of Treasuries, corporates, mortgage-backed securities, and other investment-grade bonds—while VCIT focuses exclusively on intermediate-term investment-grade corporate bonds. The key tradeoff is breadth versus yield: BND is a complete bond-market foundation; VCIT is a higher-yielding corporate-specific sleeve.

How they differ

The biggest difference is asset scope. BND holds a diversified basket spanning Treasuries, agency MBS, corporates, and asset-backed securities; VCIT holds only intermediate-term corporates. This makes VCIT yield higher—5.05% versus BND's 4.17%—because corporate bonds pay more than Treasuries and MBS, which BND mixes in. Both charge minimal fees ($161B and $67.6B in AUM respectively, with expense ratios of 0.03% and 0.04%), so the yield gap is driven entirely by underlying holdings, not structure. VCIT's beta of 1.07 is slightly higher than BND's 0.98, reflecting the greater interest-rate sensitivity and credit risk of corporate bonds relative to the broader market.

Who each is best for

BND: Fits investors seeking a core, all-in-one bond allocation that needs low volatility and broad diversification across government, corporate, and mortgage-backed sectors.

VCIT: Fits investors who already hold government bonds or cash and want to layer in additional yield through corporate credit without expanding beyond intermediate-term maturities.

Key risks to know

Interest-rate risk asymmetry. Both track investment-grade bonds, but VCIT's concentration in corporates means it has more duration sensitivity than BND's diversified mix; rising rates will steepen VCIT's price decline relative to BND.

Credit spread widening. VCIT's entire portfolio depends on corporate bond credit health; a recession or earnings deterioration could widen spreads and hurt NAV. BND's Treasury and MBS holdings act as a cushion.

Reinvestment-rate pressure at low yields. With distribution rates in the 4–5% range, both funds will face headwinds if bond yields fall further; monthly payout frequency means more reinvestment friction than quarterly alternatives.

Duration overlap with broader portfolio. If you already hold intermediate-term bonds elsewhere, VCIT's focused maturity window may create unintended concentration.

Bottom line

If you're building a bond core and want maximal diversification with minimal fees, BND's broad market approach stands out. If you already have government-bond exposure and want to harvest the yield premium from corporate credit without going long-duration or high-yield, VCIT offers a more specialized fit. Past performance doesn't predict future results; credit conditions and interest-rate moves will determine which strategy performs better over your holding period.

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

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