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 4, 2026

Vanguard

ETFs115

Total AUM$4484B

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	$73.11 as of July 4, 2026	$82.34 as of July 4, 2026
Distribution yield	4.01%	4.84%
Distribution Safety Score	100	97
Expense ratio	0.03%	0.04%
AUM	$158B	$66.2B
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

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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 lagged VCIT over the trailing twelve months, posting a 3.34% total return against 4.13%. The lead holds up over 10 years too: VCIT has compounded at 2.76% a year, against 1.41% for BND. 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	0.38%	3.34%	4.07%	-0.05%	1.41%	2.45%	5.3%	-0.09	-0.13	-5.9%
VCIT	0.29%	4.13%	6.09%	1.09%	2.76%	4.28%	5.6%	0.26	0.36	-6.1%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 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 4.84% vs 4.01% 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 ($158B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, BND would generate roughly $33.42/month, while VCIT would produce $40.33/month, at current distribution rates. Both pay monthly distributions.

BND yield4.01%

VCIT yield4.84%

Monthly diff on $10K$6.92

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 $158B in assets. VCIT is managed by Vanguard (launched 11/19/2009) with $66.2B in assets.

BND AUM$158B

VCIT AUM$66.2B

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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. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

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 $33.42 per month ($401.00 annually). The same in VCIT would produce about $40.33 per month ($484.00 annually).

Which has performed better historically, BND or VCIT?

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BND vs VCIT — at a glance

Generated June 2026 from current fund data.

Overview

BND and VCIT are both Vanguard fixed-income ETFs delivering monthly distributions, but they track fundamentally different universes. BND holds the full U.S. bond market—Treasuries, investment-grade corporates, mortgage-backed securities, and asset-backed securities—while VCIT isolates intermediate-term investment-grade corporate bonds. The choice between them hinges on whether you want diversified bond exposure or a tighter focus on corporate credit.

How they differ

BND's broadest distinguishing feature is scope: it tracks the entire Bloomberg U.S. Aggregate Index, so it carries duration risk across government, agency, and mortgage sectors alongside corporates. VCIT narrows that to corporate bonds with intermediate maturity, meaning it skews more sensitive to corporate credit conditions and less dependent on Treasury or mortgage-spread movements.

The second major difference is yield. VCIT distributes 4.94% versus BND's 4.03%—a 91-basis-point premium that reflects the higher credit risk embedded in a corporate-only portfolio. VCIT's beta of 1.07 also exceeds BND's 0.98, confirming that corporate bonds move more aggressively than the broad market.

Scale and fees are minor but real: BND commands $158B in assets and charges 0.03% in annual expenses; VCIT has $66.2B and costs 0.04%. BND's size advantage means tighter bid-ask spreads and more resilient trading liquidity.

Who each is best for

BND: Fits investors seeking a simple, diversified foundation for bond income who prefer a single holding to capture the entire U.S. fixed-income market without sector tilts or credit concentration.

VCIT: Designed for portfolios already holding government or mortgage exposure (through other funds or direct holdings) that want to layer in corporate-bond income and are comfortable taking on credit risk for higher yield.

Key risks to know

Credit spread widening: VCIT's corporate-only mandate means it will underperform BND during periods of credit stress, when corporate spreads widen relative to Treasuries. A sharp increase in default risk or flight-to-quality episodes will hit VCIT harder.

Interest-rate duration risk: Both funds carry material duration exposure; rising rates will erode NAV for both. VCIT's intermediate focus keeps duration moderate, but it's not negligible; BND's diversified maturity profile provides some insulation against rate shocks at the long end.

Maturity concentration in VCIT: By restricting to intermediate-term corporates, VCIT avoids long-duration risk but concentrates reinvestment risk in a narrower maturity band, making it more sensitive to shifts in the intermediate yield curve.

Bottom line

If you want core bond exposure without sector bets, BND's breadth and lower cost make it the simpler anchor. If you're already holding government or mortgage bonds elsewhere and want to tilt toward corporates for higher yield, VCIT's 91-basis-point distribution premium may justify the added credit risk. 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.