Which is the Better Vanguard Bond ETF?

Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:VCIT) and Vanguard Total Bond Market ETF (NASDAQ:BND) stock the aforesaid rock-bottom disbursal ratio, but VCIT offers a higher output and greater caller returns, portion BND stands retired for its size, breadth, and little volatility profile.

Both VCIT and BND people income-focused investors, but they instrumentality antithetic approaches: VCIT focuses connected investment-grade firm bonds successful the intermediate-maturity range, portion BND casts a overmuch wider nett crossed the full U.S. taxable enslaved market. This examination highlights however those differences play retired successful cost, performance, risk, and portfolio makeup.

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

Both funds are arsenic affordable, with disbursal ratios of conscionable 0.03%, but VCIT delivers a higher payout, offering a 4.6% output compared to BND’s 3.9%—a notable quality for income-seekers.

Vanguard Total Bond Market ETF provides vulnerability to the afloat spectrum of U.S. investment-grade bonds, with a portfolio of immoderate 11,444 bonds arsenic of Feb. 2026 and astir 2 decades of history. Its apical positions see Vanguard Market Liquidity Fund (Mktliq) 12/31/2049, United States Treasury Note/Bond 4.00% 02/15/2034, and United States Treasury Note/Bond 4.25% 11/15/2034, each representing little than 1.2% of assets. The fund’s wide diversification means it holds a premix of Treasuries, agencies, and corporates, aiming to reflector the full taxable enslaved market.

In contrast, Vanguard Intermediate-Term Corporate Bond ETF focuses exclusively connected investment-grade firm debt, holding 2,249 fixed-income investments. Its largest allocations are to Meta Platforms Inc. (NASDAQ:META) 4.88% 11/15/2035, United States Treasury Note/Bond 4.00% 11/15/2035, and Bank of America Corp. (NYSE:BAC) 5.01% 07/22/2033, each with tiny weights. While some funds are classified nether “Cash & Others” successful assemblage terms, VCIT’s axenic firm absorption leads to higher output and volatility, portion BND’s diversified attack smooths retired hazard crossed sectors and issuers.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.

While some are astir concentrated successful intermediate-term bonds, these 2 Vanguard ETFs play antithetic roles successful a portfolio. The Vanguard Total Bond Market volition connection greater stability, with astir 70% of the holdings U.S. authorities bonds.