At a glance
VCIT charges 0.03% a year, below the 0.13% average of the 7 funds most like it (the cheapest of 8). It has $72.04B in assets, the largest of that group; it paid 4.99% of its price in distributions over the past 12 months, monthly. Over the past year it returned −0.6% with distributions reinvested, 6th of those 8 funds; over three years it returned +7.1% a year. At its worst it fell 16.9% in the 2020 crash (S&P 500: 33.7%) and 17.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 24 months after the lows. Its ten largest positions make up 2.6% of the fund, out of 2,333 in all.
The short version
Vanguard Intermediate-Term Corporate Bond ETF (VCIT) tracks the Bloomberg U.S. 5-10 Year Corporate Bond Index. As of August 31, 2026, it held more than 2,300 investment-grade (higher-rated) bonds from companies such as Amazon and Meta. Its 0.03% annual expense ratio ties for lowest among similar funds, which averaged 0.13%. It pays monthly and yielded 4.99% over the 12 months to October 30, 2026, but it lost about 14% in 2022 as interest rates rose.
Price history
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VCIT -0.6% over the year to Oct 30, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| VCIT official prospectus, to Dec 31, 2024 | — | +3.26% | — | +0.85% | +2.73% | — |
| VCIT price data to Oct 30, 2026 | -1.3% | -0.6% | +7.1% | +0.9% | +2.6% | +4.1% |
- Over the year to Oct 30, 2026, VCIT returned -0.6%, 6th of 8 among similar funds.
- Its 5-year annualized return was +0.9% and its 10-year +2.6%.
- In the 2020 COVID crash it fell 16.9% and regained its old high 2.6 months after the low.
- Its worst full calendar year was 2022 (-14.0%); its best was 2019 (+14.1%).
- The deepest fall in its price history was 20.6% (Aug 2, 2021 to Oct 20, 2022), recovered by Jul 29, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -1.3% | — |
| 2025 | +9.3% | — |
| 2024 | +3.2% | +3.26% |
| 2023 | +9.0% | +8.91% |
| 2022 | -14.0% | -14.05% |
| 2021 | -1.8% | -1.46% |
| 2020 | +9.5% | +9.55% |
| 2019 | +14.1% | +13.97% |
| 2018 | -1.7% | -1.75% |
| 2017 | +5.3% | — |
| 2016 | +5.3% | — |
| 2015 | +0.9% | — |
| 2014 | +7.9% | — |
| 2013 | -1.9% | — |
| 2012 | +11.1% | — |
| 2011 | +9.0% | — |
| 2010 | +10.0% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 10.5% over that stretch · deepest drop along the way 16.9%, back to its old high 2.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 17.1% over that stretch · deepest drop along the way 17.4%, back to its old high 23.6 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.9900 | |
| 2025 | $3.8800 | +9.3% |
| 2024 | $3.5500 | +17.2% |
| 2023 | $3.0300 | +27.8% |
| 2022 | $2.3700 | -10.9% |
| 2021 | $2.6600 | -2.2% |
| 2020 | $2.7200 | -11.4% |
| 2019 | $3.0700 | +2.0% |
| 2018 | $3.0100 | +7.5% |
| 2017 | $2.8000 | -0.5% |
| 2016 | $2.8150 | +0.1% |
| 2015 | $2.8120 | -9.3% |
| 2014 | $3.1000 | -6.4% |
| 2013 | $3.3110 | -10.6% |
| 2012 | $3.7020 | +14.5% |
| 2011 | $3.2330 | -9.8% |
| 2010 | $3.5860 |
Living on VCIT: its income record, cuts, and how much a $1,000 monthly income takes →
What's inside
As of Aug 31, 2026, the fund held 2,333 securities; the ten largest made up 2.61% of assets.
| Holding | Weight | |
|---|---|---|
| Amazon.com Inc Bonds and notes | 0.29% | |
| Space Exploration Technologies Corp Bonds and notes | 0.27% | |
| Boeing Co Bonds and notes | 0.26% | |
| Pfizer Investment Enterprises Pte Ltd Bonds and notes | 0.26% | |
| Bank of America Corp Bonds and notes | 0.26% | |
| Meta Platforms Inc Bonds and notes | 0.26% | |
| Space Exploration Technologies Corp Bonds and notes | 0.26% | |
| Anheuser-Busch Cos LLC / Anheuser-Busch InBev Worldwide Inc Bonds and notes | 0.25% | |
| Oracle Corp Bonds and notes | 0.25% | |
| Meta Platforms Inc Bonds and notes | 0.25% | |
| JPMorgan Chase & Co Bonds and notes | 0.24% | |
| Amazon.com Inc Bonds and notes | 0.24% | |
| JPMorgan Chase & Co Bonds and notes | 0.23% | |
| Goldman Sachs Group Inc Bonds and notes | 0.23% | |
| Amgen Inc Bonds and notes | 0.23% |
By country
United States 85.42%United Kingdom 3.5%Canada 2.82%Japan 2.07%Netherlands 0.8%By issuer
Companies 98.36%US Treasury 0.23%The bonds mature in 8.2 years on average (weighted by size), with an average coupon of 5.09%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $4.85B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.12%, -1.27%, +0.22%.
How it works
VCIT is the exchange-traded share class of Vanguard Intermediate-Term Corporate Bond Index Fund. The fund had $72.0 billion in net assets across all share classes as of August 31, 2026. It aims to track the Bloomberg U.S. 5-10 Year Corporate Bond Index. That index holds U.S. dollar-denominated, investment-grade, fixed-rate, taxable bonds from U.S. and non-U.S. industrial, utility and financial companies, all maturing in 5 to 10 years. Investment grade means the bonds carry relatively high credit ratings.
The fund doesn't own every bond in the index. Instead it uses sampling: it holds a range of bonds that together approximate the index's key risk factors and other characteristics. The index weights bonds by market value, so companies with more debt outstanding count for more. The fund keeps its average maturity in line with the index's, which was 7.4 years as of August 31, 2025. Normally, at least 80% of net assets sit in index bonds.
As of August 31, 2026, the fund held about 2,330 bonds averaging 8.2 years to maturity. The 10 largest positions made up just 2.61% of assets, led by bonds from Amazon, SpaceX, Boeing and Pfizer. Turnover, the share of holdings replaced in a year, was 85% according to the December 2025 prospectus. Some of that is built in, because bonds leave the index once they fall below five years to maturity.
What it really costs
- VCIT charges 0.03% a year, versus an average of 0.13% for the similar funds below (1st of 8, cheapest first).
- Of that, 0.02% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $3 in the first year and $39 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| VCIT | $3 | $10 | $17 | $39 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
VCIT pays monthly from more than 2,300 investment-grade company bonds, with a trailing yield of 4.99% as of October 30, 2026, but its 5-to-10-year maturities make its price sensitive to interest rates.
VCIT could add regular monthly income at low cost. Its trailing 12-month yield was 4.99% as of October 30, 2026, and the SEC's standard example puts costs at $39 over 10 years on $10,000. It is not a crisis shield. It launched in November 2009, so it has no 2008 record. In the 2020 COVID crash it fell 16.9% in March and recovered by June 2020. In the 2022 bear market it fell 17.4% and didn't recover until September 2024. Its deepest drop, 20.6% from August 2021 to October 2022, took until July 2025 to recoup. Its worst calendar year was 2022, a 14.05% loss.
For someone drawing income, a bad year could mean cashing out shares at depressed prices. In 2020 and 2022, those drops came while stocks were also falling. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting monthly income from investment-grade company bonds; the trailing 12-month yield was 4.99% as of October 30, 2026.
- Cost-conscious investors: among seven similar funds, only Vanguard's VCSH matches the 0.03% expense ratio. The seven averaged 0.13%.
- Those wanting wide diversification: about 2,330 bonds as of August 31, 2026, with the 10 largest positions totaling just 2.61%.
Look elsewhere if
- Investors uneasy with rate swings: VCIT lost 14.05% in 2022. Vanguard's VCSH, also 0.03%, holds bonds averaging 3.5 years versus 8.2.
- Those wanting a hedge against stock crashes: VCIT fell 16.9% in March 2020, during the COVID crash, before recovering by June.
- Investors wanting government-backed bonds: about 98% of assets were company bonds as of August 31, 2026, with just 0.23% in U.S. Treasuries.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| VCIT this fund | 8.2 yrs | 0.03% | $72.04B | -0.6% | +7.1% |
| IGIB iShares 5-10 Year Investment Grade Corporat… | 8.3 yrs | 0.04% | $18.72B | -1.0% | +6.4% |
| USIG iShares Broad USD Investment Grade Corporat… | 10.3 yrs | 0.04% | $17.85B | -0.9% | +5.7% |
| SPIB SPDR Portfolio Intermediate Term Corporate … | 5.6 yrs | 0.04% | $11.57B | 0.0% | +6.1% |
| USHY iShares Broad USD High Yield Corporate Bond… | 5.4 yrs | 0.08% | $28.59B | +1.2% | +7.7% |
| HYG iShares iBoxx $ High Yield Corporate Bond E… | 5.4 yrs | 0.49% | $16.19B | +0.9% | +7.4% |
| JAAA Janus Henderson AAA CLO ETF | 11.4 yrs | 0.2% | $29.21B | +4.9% | +6.1% |
| VCSH Vanguard Short-Term Corporate Bond ETF | 3.5 yrs | 0.03% | $51.74B | +1.9% | +5.7% |
Questions investors ask
Does VCIT pay monthly dividends?
Yes. VCIT pays distributions monthly. Over the 12 months to October 30, 2026, it paid $3.98 per share, a trailing yield of 4.99%. The money comes from interest on its bonds. As of August 31, 2026, they carried an average coupon (stated interest rate) of 5.09%. Payments can vary: the prospectus warns that when interest rates fall, the fund's income may decline.
What's the difference between VCIT and IGIB?
Mostly cost and size. VCIT charges 0.03% a year, versus 0.04% for iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB). As of August 31, 2026, VCIT's fund held $72.0 billion across all share classes, against $18.7 billion for IGIB. Their portfolios are close, with average maturities of 8.2 and 8.3 years. Returns to October 30, 2026, nearly matched: -0.6% for both over one year, and 7.1% versus 7.2% a year over three years.
What happens to VCIT when interest rates rise?
Its price usually falls. Bond prices move opposite to interest rates, and longer maturities react more. VCIT's bonds averaged 8.2 years to maturity as of August 31, 2026, so rate moves matter. In 2022, as rates climbed, it lost 14.05%, its worst calendar year, including a 6.96% drop in the first quarter. Investors wanting less rate sensitivity may compare it with Vanguard Short-Term Corporate Bond ETF (VCSH), whose bonds averaged 3.5 years.
Is VCIT safe?
Not in the way a bank account is. VCIT is not FDIC-insured and can lose money. Its index includes only investment-grade bonds, which carry less default risk than high-yield debt. But rising interest rates or doubts about a company's ability to pay can still push prices down. Its deepest drop was 20.6%, from August 2021 to October 2022. It also fell 16.9% in March 2020 before recovering by June.
What is VCIT's expense ratio?
VCIT's expense ratio, the yearly fee taken from fund assets, is 0.03%, per the prospectus filed December 19, 2025. That includes a 0.02% management fee. In the SEC's standard example, $10,000 earning 5% a year would incur about $3 in costs over one year, $17 over five and $39 over 10. Among seven similar funds, only Vanguard's VCSH matches it. The seven averaged 0.13%, and IGIB charges 0.04%.