VCIT vs VNQ
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Real Estate ETF
Which is better, VCIT or VNQ?
Long Term Mid Quality against Mid Cap Blend.
VCIT has a lower expense ratio. VNQ led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VCIT | VNQ |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.13% |
| AUM | $66.6B | $35.9B |
| Dividend Yield | 5.08% | 3.80% |
| Holdings | 2,283 | 144 |
| YTD Return | -2.73% | +4.97%Best |
| 1Y Return | -2.26% | +4.65%Best |
| 3Y Return (annualized) | +6.21% | +10.00%Best |
| 5Y Return (annualized) | +0.47% | +0.61%Best |
| Volatility (annualized) | 6.0%Best | 17.2% |
| Max Drawdown | -20.7%Best | -42.8% |
| $10,000 over 5 years | $10,237 | $10,309Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Mid Cap Blend |
| Inception | Nov 19, 2009 | Sep 23, 2004 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Oct 14, 2026 (16.9 years).
VCIT vs VNQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 16.9 years both funds cover.
VCIT vs VNQ Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is an ETF from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US). Over the past year VCIT returned -2.26% while VNQ returned +4.65%. Year to date, VCIT is down 2.73% versus a gain of 4.97% for VNQ.
Over three years, VCIT compounded at +6.21% per year against +10.00% for VNQ; over five years the annualized figures are +0.47% and +0.61% respectively. Across the full 17-year window we track, VNQ has the edge at +5.92% annualized vs +1.59%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 6.0% for VCIT. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -20.7% for VCIT and -42.8% for VNQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.64. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VCIT charges 0.03% per year while VNQ charges 0.13%. On a $10,000 position that is $3 vs $13 annually, a gap of $10 per year that compounds over a long holding period. On income, VCIT currently yields 5.08% against 3.80% for VNQ.
Holdings Overlap
At least 0.2% of VNQ's money is in holdings VCIT also owns.
Stated as a floor: for VCIT, our book for it covers 66.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 1,541 positions we hold weights for in VCIT and 140 in VNQ, against full books of 2,283 and 144.
What only one of them owns
Measured across the 1,541 and 140 positions we hold weights for.
VCIT holds 1,387 positions VNQ does not, 66.8% of the fund.
Largest: BAC V5.015 07/22/33 0.27%, BA 6.528 05/01/34 0.27%, PFE 4.75 05/19/33 0.26%, JPM V5.35 06/01/34 0.25%, ORCL 0.25%
Top Shared Holdings
| Stock | Weight in VCIT | Weight in VNQ | Difference |
|---|---|---|---|
| MKLMarkel Group Inc | 0.03% | 0.17% | 0.14% |
You are not choosing between two funds in isolation.
Whichever of VCIT and VNQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VCIT or VNQ?
VCIT has an expense ratio of 0.03% while VNQ charges 0.13%. VCIT is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, VCIT or VNQ?
Over the past year VCIT returned -2.26% vs +4.65% for VNQ, so VNQ leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.59% vs +5.92% for VNQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VCIT or VNQ?
VNQ has been the more volatile fund at 17.2% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VNQ -42.8%.
Should I hold both VCIT and VNQ?
VCIT and VNQ have a monthly-return correlation of 0.64, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VCIT or VNQ?
VCIT yields 5.08% while VNQ yields 3.80%, so VCIT currently pays the higher dividend yield.
Is VNQ better than VCIT?
VCIT has a lower expense ratio. VNQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.