Comparing the Top Vanguard Bond ETFs: Which One Reigns Supreme?

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Key Facts on Vanguard ETFs

The Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:VCIT) reported a one-year return of 8.9% and a dividend yield of 4.6% as of February 3, 2026. In comparison, the Vanguard Total Bond Market ETF (NASDAQ:BND) had a one-year return of 6.7% and a yield of 3.9%. Both ETFs maintain an identical expense ratio of 0.03%.

As of the same date, VCIT’s assets under management (AUM) were $61.8 billion, while BND’s were significantly larger at $384.8 billion. VCIT has experienced higher volatility, with a five-year max drawdown of 20.56%, compared to BND’s 17.93% drawdown.

VCIT focuses exclusively on investment-grade corporate bonds, with 94% of its portfolio rated A or BBB, while BND offers broader exposure, including approximately 11,444 investment-grade bonds across various sectors.

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