ETF Comparison
VCIT vs LQD: Which Is the Better Pick in 2026?
A head-to-head comparison of Vanguard Intermediate-Term Corporate Bond ETF and iShares iBoxx $ Investment Grade Corporate Bond ETF covering yield, cost, risk, and income potential.
Data updated April 5, 2026
Side-by-side snapshot
| VCIT | LQD | |
|---|---|---|
| Full name | Vanguard Intermediate-Term Corporate Bond ETF | iShares iBoxx $ Investment Grade Corporate Bond ETF |
| Issuer | Vanguard | BlackRock |
| Price | $82.52 | $108.66 |
| Distribution yield | 4.59% | 4.44% |
| Expense ratio | 0.03% | 0.14% |
| AUM | $68.5B | $32.0B |
| Distribution frequency | Monthly | Monthly |
| Underlying index | USD investment-grade intermediate-term corporate bonds | Markit iBoxx USD Liquid Investment Grade Index |
| Objective | Provide 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 class | Fixed Income | Fixed Income |
| Inception date | 11/19/2009 | 07/22/2002 |
| Beta | 1.06 | 1.35 |
| Last dividend | $0.34 | $0.45 |
| Ex-dividend date | 04/01/2026 | 04/01/2026 |
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Quick verdict
VCIT (Vanguard Intermediate-Term Corporate Bond ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both popular monthly-pay provide exposure to the fund's underlying index or strategy per issuer materials. ETFs, but they take different approaches.
VCIT offers the higher yield at 4.59% vs 4.44% 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 track different benchmarks: VCIT is linked to USD investment-grade intermediate-term corporate bonds while LQD tracks Markit iBoxx USD Liquid Investment Grade Index, which means their performance drivers differ.
VCIT is the larger fund by assets ($68.5B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, VCIT would generate roughly $38.25/month while LQD would produce $37.00/month at current distribution rates. Both pay monthly distributions.
Cost & efficiency
Over 10 years on $10,000, VCIT would cost approximately $30 in fees vs $140 for LQD (simplified, not compounded). The $110.00 difference may be offset by yield or performance.
Strategy & risk
VCIT tracks USD investment-grade intermediate-term corporate bonds with a provide exposure to the fund's underlying index or strategy per issuer materials. approach, while LQD tracks Markit iBoxx USD Liquid Investment Grade Index using a provide exposure to the fund's underlying index or strategy per issuer materials. strategy. Beta is 1.06 for VCIT and 1.35 for LQD, indicating VCIT is less volatile relative to the market.
Fund details
VCIT is managed by Vanguard (launched 11/19/2009) with $68.5B in assets. LQD is managed by BlackRock (launched 07/22/2002) with $32.0B in assets.
Income calculator
See how much monthly income a hypothetical investment would generate in each ETF at current yields.
Frequently asked questions
Is VCIT or LQD 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 VCIT and LQD?
VCIT (Vanguard Intermediate-Term Corporate Bond ETF) tracks USD investment-grade intermediate-term corporate bonds with a provide exposure to the fund's underlying index or strategy per issuer materials. strategy, while LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) tracks Markit iBoxx USD Liquid Investment Grade Index with a provide exposure to the fund's underlying index or strategy per issuer materials. approach. They are issued by Vanguard and BlackRock respectively.
Can I hold both VCIT and LQD?
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, VCIT or LQD?
VCIT has an expense ratio of 0.03% while LQD charges 0.14%. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in VCIT vs LQD generate?
At current yields, $10,000 in VCIT would generate roughly $38.25 per month ($459.00 annually). The same in LQD would produce about $37.00 per month ($444.00 annually).
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