Vanguard Intermediate-Term Corporate Bond ETF offers a higher yield than Vanguard Total Bond Market ETF, despite both having low expenses. BND is larger and more diversified, tracking the entire U.S. investment-grade bond universe. VCIT has shown stronger recent returns but with higher volatility and drawdowns.

VCIT and BND have identical low expenses of 0.03%. However, VCIT provides a higher yield of 4.6% compared to BND’s 3.9%. VCIT focuses on investment-grade corporate bonds, while BND covers the entire U.S. taxable bond market, showcasing differences in cost, performance, and risk.

VCIT holds a higher yield and greater volatility with a focus on corporate bonds, while BND offers stability with a broader bond market exposure. BND’s one-year return is 6.7%, while VCIT has returned 8.9% over the same period. VCIT has shown better performance over time with the same low expense ratio.

Investors seeking higher returns and willing to tolerate more volatility may prefer Vanguard Intermediate-Term Corporate Bond ETF. In contrast, those looking for stability and diversified exposure to the bond market might opt for Vanguard Total Bond Market ETF. Both ETFs have low expense ratios and offer distinct benefits based on investment goals.

Read more at Nasdaq: Which is the Better Vanguard Bond ETF?