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ETF Comparison

LQD vs VCIT: Broad IG Credit, or Intermediate Corporates?

A head-to-head of iShares iBoxx $ Investment Grade Corporate Bond ETF and Vanguard Intermediate-Term Corporate Bond ETF.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • LQDInvestors who want fixed-income ballast that steadies the portfolio when stocks fall.
  • VCITInvestors who want fixed-income ballast that steadies the portfolio when stocks fall.

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.

LQD has lagged VCIT over the trailing twelve months, posting a -4.33% total return against -2.65%. The lead holds up over 10 years too: VCIT has compounded at 2.31% a year, against 1.74% for LQD. VCIT has been the steadier holding, though — annualized volatility of 5.4% against 7.1% for LQD. 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
LQD-4.25%-4.33%5.00%-1.39%1.74%3.56%7.1%0.060.08-6.3%
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.
MetricLQDVCIT
Full nameiShares iBoxx $ Investment Grade Corporate Bond ETFVanguard Intermediate-Term Corporate Bond ETF
IssueriSharesVanguard
Underlying indexMarkit iBoxx USD Liquid Investment Grade IndexUSD investment-grade intermediate-term corporate bonds
Last Close$101.83 as of October 2, 2026$77.98 as of October 2, 2026
Distribution rate5.17%5.23%
Trailing 12-month yield4.96%5.12%
Distribution Safety Score™ 100100
Safety-Adjusted Yield 5.17%5.23%
Expense ratio0.14%0.03%
AUM$27.2B$67.3B
Distribution frequencyMonthlyMonthly
ObjectiveProvide exposure to the fund's underlying index or strategy per issuer materials.Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset classFixed IncomeFixed Income
Inception date07/22/200211/19/2009
Beta1.351.07
Last dividend$0.43866 declared, pays 10/06/2026$0.34 declared, pays 10/05/2026
Ex-dividend date10/01/202610/01/2026

Bottom lineLQD and VCIT are both for investors who want fixed-income ballast that steadies the portfolio when stocks fall — so strategy isn't the deciding factor here. Cost is: VCIT charges 0.03% against 0.14% for LQD, and between two funds this similar that gap comes straight out of your return every year you hold.

Broad IG corporates versus intermediate corporates

LQD holds a broad investment-grade corporate book. VCIT holds intermediate-term corporates. Duration is the split.

LQDVCIT
UniverseBroad IG corporatesIntermediate-term corporates
Expense ratio0.14%0.03%
Distribution rate5.17%5.23%
Fund size$27.2B$67.3B
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iShares
ETFs466
Total AUM$4683B

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

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on LQD.

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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 VCIT.

See all Vanguard ETFs

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Quick verdict

LQD (iShares iBoxx $ Investment Grade Corporate Bond 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 5.17% for LQD. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VCIT is cheaper with an expense ratio of 0.03% compared to 0.14%.

They have different reference exposures: LQD is linked to Markit iBoxx USD Liquid Investment Grade Index while VCIT is linked to USD investment-grade intermediate-term corporate bonds, which means their performance drivers differ.

VCIT is the larger fund by assets ($67.3B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, LQD would generate roughly $43.08 cash per distribution, while VCIT would produce $43.58 cash per distribution, at current distribution rates. Both pay monthly distributions.

LQD yield5.17%
VCIT yield5.23%
Cash diff on $10K$0.50

Cost & efficiency

Over 10 years on $10,000, LQD would cost approximately $140 in fees vs $30 for VCIT (simplified, not compounded). The $110.00 difference may be offset by yield or performance.

LQD ER0.14%
VCIT ER0.03%

Strategy & risk

LQD tracks Markit iBoxx USD Liquid Investment Grade Index with a bonds approach, while VCIT tracks USD investment-grade intermediate-term corporate bonds with a bonds approach. Beta is 1.35 for LQD and 1.07 for VCIT, making VCIT the less volatile of the two by this measure.

LQD beta1.35
VCIT beta1.07

Fund details

LQD is managed by iShares (launched 07/22/2002) with $27.2B in assets. VCIT is managed by Vanguard (launched 11/19/2009) with $67.3B in assets.

LQD AUM$27.2B
VCIT AUM$67.3B
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Frequently asked questions

What is the difference between LQD and VCIT?

LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) holds a broad investment-grade corporate book. VCIT (Vanguard Intermediate-Term Corporate Bond ETF) holds intermediate-term corporates. Cost is 0.14% versus 0.03%. Distributions are 5.17% and 5.23% as of October 2026. Duration, not a one-date yield, is the split.

What is the current distribution rate for LQD and VCIT?

LQD currently distributes 5.17% 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 LQD 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 LQD 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 LQD 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: LQD scores 100, VCIT scores 100. Neither has a clear safety edge on that measure. VCIT has also shown lower price volatility (beta 1.07 vs 1.35 for LQD). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, LQD or VCIT?

LQD has an expense ratio of 0.14% while VCIT charges 0.03%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in LQD would generate roughly $43.08 cash per distribution ($517.00 annually). The same in VCIT would produce about $43.58 cash per distribution ($523.00 annually).

Which has performed better historically, LQD or VCIT?

LQD has lagged VCIT over the trailing twelve months, posting a -4.33% total return against -2.65%. The lead holds up over 10 years too: VCIT has compounded at 2.31% a year, against 1.74% for LQD. VCIT has been the steadier holding, though — annualized volatility of 5.4% against 7.1% for LQD. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

LQD vs VCIT — at a glance

Generated October 3, 2026.

Overview

LQD and VCIT are both ETFs delivering monthly income from investment-grade corporate bonds, but they differ in their scope and structure. LQD tracks the Markit iBoxx USD Liquid Investment Grade Index and holds a broad universe of IG corporate bonds across the maturity spectrum. VCIT focuses narrowly on intermediate-term IG corporate bonds—a tighter maturity band that typically dampens both interest-rate sensitivity and yield volatility compared to a broader index.

How they differ

The core difference is maturity strategy: VCIT's intermediate-term focus means shorter average duration and lower price sensitivity to rate moves than LQD's broad-maturity approach. LQD's beta of 1.35 reflects greater sensitivity to broader bond-market swings, while VCIT's beta of 1.07 indicates a more muted response to rate and credit shifts. VCIT carries a dramatically lower expense ratio of 0.03% versus LQD's 0.14%—a 0.11% percentage-point gap—yet delivers a marginally higher distribution rate of 5.23% against LQD's 5.17%.

Who each is best for

LQD: Fits investors comfortable with a diversified, full-spectrum IG corporate-bond exposure and willing to accept greater duration risk in exchange for a broader issuer and maturity mix.

VCIT: Fits investors seeking to moderate interest-rate sensitivity while capturing IG credit income, or those prioritizing minimal costs and prefer intermediate-term bonds to longer-duration paper.

Key risks to know

  • Interest-rate duration risk: LQD's higher beta (1.35) means its NAV will swing more sharply in response to Fed rate moves and yield-curve shifts; VCIT's intermediate focus mitigates this but does not eliminate it.
  • Credit spread widening: Both funds hold IG bonds, so a deterioration in corporate credit fundamentals or a widening of credit spreads could pressure both, though VCIT's shorter duration may cushion NAV declines somewhat.
  • Call risk and reinvestment: Corporate bonds are often callable, particularly in declining-rate environments; redemptions at par can force reinvestment at lower yields, reducing total return relative to initial distributions.

Bottom line

If you want broad IG corporate exposure with monthly income and accept higher rate sensitivity in exchange, LQD works. If you prefer to dampen duration risk, minimize costs, and still collect IG-level yield, VCIT's intermediate-term strategy and lower fees stand out. Past performance does not predict future results.

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

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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.