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VCIT
Vanguard Intermediate-Term Corporate Bond ETF · Bond ETF
$82.48
+1.57% this month
VERSUS
⟷
COMPARE
LQD
iShares iBoxx $ Investment Grade Corporate Bond ETF · Bond ETF
$109.07
+2.21% this month
Scoreboard verdict
Across expense ratio, momentum, yield, fund size, risk
VCIT
5
LQD
0
Comparison scoreboard
VCIT LEADS 5/5Exp. Ratio
VCIT ✓0.03%
LQD 0.14%
1Y Return
VCIT ✓+5.76%
LQD +5.60%
Div. Yield
VCIT ✓4.75%
LQD 4.52%
AUM
VCIT ✓$68.73B
LQD $29.78B
Beta
VCIT ✓0.33
LQD 0.43
Metrics last refreshed: 6/22/2026
Quick take
VCIT vs LQD ETF Comparison: AI Score, Valuation, Performance and Upside
VCIT and LQD are both investment-grade corporate bond ETFs, but with different maturity profiles and expense ratios. VCIT's 5-10 year intermediate focus provides moderate duration risk at 0.04% expense. LQD's all-maturity approach creates higher duration at 0.14% expense — 3.5x more expensive. For individual buy-and-hold corporate bond investors, VCIT's cost advantage and targeted intermediate exposure is preferable. For institutional investors needing the IG corporate bond benchmark with maximum liquidity, LQD remains the standard.
VCIT vs LQD — Vanguard Intermediate-Term Corporate Bond ETF (intermediate 5-10 year maturity IG corporate bonds at 0.04% expense ratio for cost-conscious buy-and-hold investors) versus iShares Investment Grade Corporate Bond ETF (the most liquid all-maturity IG corporate bond benchmark at 0.14% for institutional investors needing maximum trading depth and derivatives integration).
Live analysis · updated 6/22/2026
VCIT holds the edge across 5 of 5 key metrics in this comparison. VCIT has delivered stronger 1-year price return (+5.76% vs +5.60% for LQD).
Normalized 1Y performance
VCIT
LQD
Recent returns
VCIT
LQD
Who should consider this stock?
VCIT may suit investors who:
- →prefer Vanguard's industry-lowest 0.04% expense ratio for investment-grade corporate bonds — saving 0.10% annually vs LQD compounds to meaningful savings for long-term bond holders
- →want targeted intermediate 5-10 year duration for corporate bond allocation — managing interest rate sensitivity more precisely than all-maturity LQD
- →implement duration-matching fixed income strategies using VCSH (short), VCIT (intermediate), and VCLT (long) as separately controllable duration buckets
- →are comfortable with slightly less liquidity than LQD for typical individual investor portfolio sizes
LQD may suit investors who:
- →need institutional-grade liquidity for large corporate bond allocations where LQD's $30B+ AUM and the deepest IG bond ETF derivatives market enable large-scale hedging and tactical strategies
- →want the recognized investment-grade corporate bond benchmark used by institutional managers for performance attribution and index fund comparison
- →actively trade corporate bond exposure using LQD's options and futures for rate hedging, credit spread positioning, and fixed income ETF arbitrage strategies
- →are comfortable with 0.14% expense ratio understanding it funds the liquidity premium that enables institutional trading cost savings that may offset the expense difference
Performance & AI score
| Metric | VCIT | LQD |
|---|---|---|
| ETF score | 55.0 | 51.0 |
| Latest close | $82.48 | $109.07 |
| 1M return | +1.57% | +2.21% |
| 6M return | +0.70% | +1.05% |
| 1Y return | +5.76% | +5.60% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | VCIT | LQD |
|---|---|---|
| 1Y ago | $11.1K (+11.0%) started 2025-06-18 | $11.06K (+10.6%) started 2025-06-18 |
| 5Y ago | $13.16K (+31.6%) started 2021-06-18 | $12.19K (+21.9%) started 2021-06-18 |
| 10Y ago | $20.49K (+104.9%) started 2016-06-20 | $19.55K (+95.5%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Fund characteristics
| Metric | VCIT | LQD |
|---|---|---|
| Expense ratio | 0.03% | 0.14% |
| Total assets (AUM) | $68.73B | $29.78B |
| Dividend yield | 4.75% | 4.52% |
| Trailing P/E | N/A | 32.98 |
| Beta | 0.33 | 0.43 |
| 52-week change | 5.76% | 5.60% |
Risk & fund metrics
| Metric | VCIT | LQD |
|---|---|---|
| 1Y return | +5.76% | +5.60% |
| 6M return | +0.70% | +1.05% |
| 1M return | +1.57% | +2.21% |
| 1Y Sharpe ratio | 0.30 | 0.21 |
| Beta | 0.33 | 0.43 |
| Dividend yield | 4.75% | 4.52% |
| 5Y CAGR | +1.15% | -0.30% |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
VCIT max drawdown2.96%
LQD max drawdown3.34%
VCIT max wkly drop1.40%
LQD max wkly drop1.92%
5Y risk snapshot
VCIT max drawdown20.56%
LQD max drawdown24.95%
VCIT max wkly drop4.34%
LQD max wkly drop4.94%
10Y risk snapshot
VCIT max drawdown20.56%
LQD max drawdown24.95%
VCIT max wkly drop11.29%
LQD max wkly drop13.25%
Performance metrics by period
| Period | Metric | VCIT | LQD |
|---|---|---|---|
| 1Y | Growth | +5.76% | +5.60% |
| CAGR | +5.77% | +5.60% | |
| Sharpe ratio | 0.30 | 0.21 | |
| Max drawdown | 2.96% | 3.34% | |
| Max daily drop | 0.94% | 1.23% | |
| Max wkly drop | 1.40% | 1.92% | |
| 5Y | Growth | +5.87% | -1.49% |
| CAGR | +1.15% | -0.30% | |
| Sharpe ratio | -0.47 | -0.51 | |
| Max drawdown | 20.56% | 24.95% | |
| Max daily drop | 1.71% | 2.31% | |
| Max wkly drop | 4.34% | 4.94% | |
| 10Y | Growth | +33.63% | +28.48% |
| CAGR | +2.94% | +2.54% | |
| Sharpe ratio | -0.22 | -0.19 | |
| Max drawdown | 20.56% | 24.95% | |
| Max daily drop | 4.49% | 5.00% | |
| Max wkly drop | 11.29% | 13.25% |
Fund overview
| Category | VCIT | LQD |
|---|---|---|
| Fund name | Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares | iShares iBoxx $ Investment Grade Corporate Bond ETF |
| Type | ETF | ETF |
| Expense ratio | 0.03% | 0.14% |
| Total assets (AUM) | $68.73B | $29.78B |
| Dividend yield | 4.75% | 4.52% |
VCIT strengths
- →0.04% expense ratio: among the cheapest intermediate corporate bond ETFs — Vanguard's cost leadership is particularly impactful for bond funds where yield margins are thin
- →5-10 year maturity focus: intermediate duration provides higher yields than short-term bonds while carrying less interest rate risk than long-term bonds — a balanced fixed income positioning
- →Pure investment-grade intermediate focus: VCIT's specific maturity targeting enables investors to implement duration-specific strategies — pairing with short-term and long-term funds for barbell strategies
LQD strengths
- →Most liquid IG corporate bond ETF: LQD's $30B+ AUM and institutional recognition make it the standard investment-grade bond ETF for large institutional allocations and derivatives-based hedging
- →Broader maturity range: LQD's all-maturity index creates more comprehensive corporate bond market exposure including both shorter and longer maturities vs VCIT's 5-10 year focus
- →Benchmark corporate bond exposure: LQD tracks the most widely recognized investment-grade corporate bond benchmark — used by institutional managers for benchmark comparison
Risks to watch — VCIT
- →Duration sensitivity: VCIT's 4-6 year effective duration creates moderate price sensitivity to interest rate changes — a 1% rate rise causes approximately 4-6% price decline
- →Investment-grade credit risk: corporate bonds carry default risk beyond US Treasuries — in credit crises (2008, COVID 2020), investment-grade corporate spreads widen significantly
- →Excludes long and short-term bonds: investors wanting total corporate bond market exposure need LQD or VCLT (long-term) plus VCSH (short-term) alongside VCIT
Risks to watch — LQD
- →0.14% expense ratio vs VCIT's 0.04%: LQD costs 0.10% more per year — significant on a bond fund where yields are typically 3-5%, representing 2-3% of your gross return going to fees
- →Higher duration than VCIT: LQD's longer average maturity creates more interest rate sensitivity — larger mark-to-market losses in rising rate environments than VCIT's intermediate focus
- →Higher concentration in longest-maturity bonds: LQD's inclusion of long-term corporate bonds increases duration risk vs the more conservative intermediate positioning of VCIT
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