The Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and the Vanguard Intermediate-Term Treasury ETF (VGIT) offer low costs and moderate-duration bonds, but VCIT has a higher yield and more credit risk with corporate debt, while VGIT focuses solely on U.S. Treasuries for lower historical drawdown.
Both VCIT and VGIT aim for steady income with moderate interest rate exposure, but their approaches differ. VCIT leans into investment-grade corporate bonds, while VGIT stays with U.S. government debt. The comparison covers cost, yield, performance, risk, and portfolio composition to help investors choose.
VCIT and VGIT have an expense ratio of 0.03% each, with VCIT offering a significantly higher yield. VCIT may appeal to those seeking more income without added expense in the bond ETF space.
VCIT invests in investment-grade corporate bonds like Meta Platforms and Bank of America, while VGIT sticks to U.S. Treasury securities exclusively, providing a straightforward approach with minimal credit risk for those seeking government-only exposure.
Investors should choose VCIT for higher income and corporate credit risk acceptance, while VGIT is better for conservative investors prioritizing capital preservation with government-backed safety. VCIT offers higher returns and yield, while VGIT provides stability during downturns.
Consideration before buying stock in Vanguard Scottsdale Funds – Vanguard Intermediate-Termorate Bond ETF includes the Motley Fool Stock Advisor not listing it among the 10 best stocks for investors. The Stock Advisor has shown a total average return of 914%, outperforming the S&P 500 by 719%.
*Stock Advisor returns as of February 7, 2026. Bank of America is an advertising partner of Motley Fool Money. Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The views and opinions expressed do not necessarily reflect those of Nasdaq, Inc.
Read more at Nasdaq: Vanguard’s VCIT Delivers More Income Than VGIT. Is the Credit Risk Worth It?