At a glance
VGIT charges 0.03% a year, below the 0.08% average of the 7 funds most like it (the cheapest of 8). It has $48.41B in assets, the largest of that group; it paid 3.97% of its price in distributions over the past 12 months, monthly. Over the past year it returned −0.2% with distributions reinvested, 3rd of those 8 funds; over three years it returned +4.5% a year. At its worst it fell 2.3% in the 2020 crash (S&P 500: 33.7%) and 11.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high within a month and 34 months after the lows. Its ten largest positions make up 18.5% of the fund, out of 103 in all.
The short version
Vanguard Intermediate-Term Treasury ETF (VGIT) holds US Treasury notes and bonds that mature in 3 to 10 years. It tracks the Bloomberg U.S. Treasury 3-10 Year Index. Its expense ratio (the yearly fee) is 0.03%, which ties for the lowest among similar funds and is well below the 0.08% peer average. It pays income monthly, but its bonds lose value when interest rates rise: it fell 10.67% in 2022.
Price history
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VGIT -0.2% 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 | |
|---|---|---|---|---|---|---|
| VGIT official prospectus, to Dec 31, 2024 | — | +1.32% | — | -0.17% | +1.09% | — |
| VGIT price data to Oct 30, 2026 | -0.8% | -0.2% | +4.5% | +0.2% | +1.2% | +2.1% |
- Over the year to Oct 30, 2026, VGIT returned -0.2%, 3rd of 8 among similar funds.
- Its 5-year annualized return was +0.2% and its 10-year +1.2%.
- In the 2020 COVID crash, while stocks fell, it gained 5%.
- Its worst full calendar year was 2022 (-10.5%); its best was 2011 (+9.6%).
- The deepest fall in its price history was 16.1% (Aug 4, 2020 to Oct 20, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -0.8% | — |
| 2025 | +7.3% | — |
| 2024 | +1.4% | +1.32% |
| 2023 | +4.3% | +4.42% |
| 2022 | -10.5% | -10.67% |
| 2021 | -2.6% | -2.57% |
| 2020 | +7.7% | +7.66% |
| 2019 | +6.2% | +6.31% |
| 2018 | +1.4% | +1.31% |
| 2017 | +1.7% | — |
| 2016 | +0.8% | — |
| 2015 | +1.6% | — |
| 2014 | +4.6% | — |
| 2013 | -2.9% | — |
| 2012 | +2.2% | — |
| 2011 | +9.6% | — |
| 2010 | +7.5% | — |
| 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 | Gained 5% over that stretch · deepest drop along the way 2.3%, back to its old high 0.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 11.2% over that stretch · deepest drop along the way 11.9%, back to its old high 34.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.7200 | |
| 2025 | $2.2600 | +5.6% |
| 2024 | $2.1400 | +31.3% |
| 2023 | $1.6300 | +59.8% |
| 2022 | $1.0200 | -8.9% |
| 2021 | $1.1200 | -27.7% |
| 2020 | $1.5500 | +5.4% |
| 2019 | $1.4700 | +13.1% |
| 2018 | $1.3000 | +20.4% |
| 2017 | $1.0800 | -0.9% |
| 2016 | $1.0900 | -0.9% |
| 2015 | $1.1000 | +10.4% |
| 2014 | $0.9960 | +15.0% |
| 2013 | $0.8664 | -48.5% |
| 2012 | $1.6830 | +21.1% |
| 2011 | $1.3900 | -25.1% |
| 2010 | $1.8570 |
Living on VGIT: its income record, cuts, and how much a $1,000 monthly income takes →
What's inside
As of Aug 31, 2026, the fund held 103 securities; the ten largest made up 18.51% of assets.
| Holding | Weight | |
|---|---|---|
| United States Treasury Note/Bond Bonds and notes | 1.92% | |
| United States Treasury Note/Bond Bonds and notes | 1.92% | |
| United States Treasury Note/Bond Bonds and notes | 1.87% | |
| United States Treasury Note/Bond Bonds and notes | 1.87% | |
| United States Treasury Note/Bond Bonds and notes | 1.83% | |
| United States Treasury Note/Bond Bonds and notes | 1.83% | |
| United States Treasury Note/Bond Bonds and notes | 1.83% | |
| United States Treasury Note/Bond Bonds and notes | 1.82% | |
| United States Treasury Note/Bond Bonds and notes | 1.82% | |
| United States Treasury Note/Bond Bonds and notes | 1.81% | |
| United States Treasury Note/Bond Bonds and notes | 1.79% | |
| United States Treasury Note/Bond Bonds and notes | 1.69% | |
| United States Treasury Note/Bond Bonds and notes | 1.64% | |
| United States Treasury Note/Bond Bonds and notes | 1.62% | |
| United States Treasury Note/Bond Bonds and notes | 1.53% |
By country
United States 98.75%By issuer
US Treasury 98.75%The bonds mature in 5.5 years on average (weighted by size), with an average coupon of 3.62%.
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 withdrew a net $185.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.13%, -0.75%, +0.13%.
How it works
VGIT is the exchange-traded share class of Vanguard Intermediate-Term Treasury Index Fund. It shares one portfolio with the fund's other share classes. The fund tracks the Bloomberg U.S. Treasury 3-10 Year Index, which holds bonds issued by the US Treasury that mature in 3 to 10 years. The index leaves out inflation-protected Treasuries (TIPS), floating-rate securities and some other types. It is market-weighted, so larger issues count for more.
Vanguard doesn't own every bond in the index. It uses sampling: it holds a range of Treasuries that match the index's key risk traits. It normally keeps at least 80% of net assets in index bonds. It also keeps its dollar-weighted average maturity in line with the index's. That measure is the average time until the bonds mature, weighted by position size. For the index, it was 5.6 years as of August 31, 2025. As of August 31, 2026, the fund held 103 Treasury issues. The largest was 1.92% of assets and the top 10 totaled 18.51%. Cash was 0.33%, and the fund held no derivatives.
Bonds leave the index once they have less than three years to maturity, and newly eligible Treasuries join, so the fund keeps trading. Its portfolio turnover, the share of holdings replaced over a year, was 55%. Because the fund samples, its returns can drift from the index's. Shares trade on Nasdaq at market prices, which can differ slightly from the value of the bonds inside.
What it really costs
- VGIT charges 0.03% a year, versus an average of 0.08% 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 |
|---|---|---|---|---|
| VGIT | $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
Its Treasuries have tended to move differently from stocks, gaining 5% in the 2020 crash, but the fund still fell along with stocks in 2022.
VGIT launched in November 2009, so it has no record from the 2008 crisis. In the 2020 COVID crash, it gained 5% between the stock market's February peak and its March low. The 2022 bear market was different. Rising rates pushed it down 11.9% from January to September, and 2022 was its worst calendar year, at -10.67%. It took about 34 months from that low, until August 2025, to recover. Its deepest drop was 16.1%, from August 2020 to October 2022, and it had not been made up as of October 30, 2026. Anyone drawing cash in a year like 2022 had to cash out shares at lower prices.
Its monthly payouts totaled 3.97% of its price in the 12 months to October 30, 2026. The SEC's standard example puts first-year costs at $3 on $10,000. Past results don't predict future ones, and a plan needs to weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Cost-conscious investors: its 0.03% expense ratio ties SCHR and SPTI for the lowest among similar funds, below the 0.08% peer average.
- Investors wanting monthly income from US government debt: it paid $2.29 per share, a 3.97% yield, over the 12 months to October 30, 2026.
- Stock-heavy portfolios seeking a diversifier: it gained 5% in the 2020 COVID crash, between the stock market's February peak and March low.
Look elsewhere if
- Savers who can't stomach price drops: it lost 10.67% in 2022 and hadn't regained its August 2020 peak as of October 30, 2026.
- Investors seeking inflation protection: its index excludes inflation-protected Treasuries (TIPS), so its bonds' fixed payments can lose buying power when prices rise.
- Short-term savers: Vanguard's VGSH, with bonds averaging 1.9 years to maturity, typically reacts less to rising rates and has the same 0.03% fee.
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 |
|---|---|---|---|---|---|
| VGIT this fund | 5.5 yrs | 0.03% | $48.41B | -0.2% | +4.5% |
| SCHR Schwab Intermediate-Term U.S. Treasury ETF | 5.5 yrs | 0.03% | $13.38B | -0.6% | +4.1% |
| SPTI SPDR Portfolio Intermediate Term Treasury E… | 5.6 yrs | 0.03% | $10.18B | -1.4% | +4.2% |
| IEI iShares 3-7 Year Treasury Bond ETF | 4.7 yrs | 0.15% | $17.68B | -0.4% | +4.0% |
| GOVT iShares U.S. Treasury Bond ETF | 7.4 yrs | 0.05% | $43.55B | -0.5% | +3.8% |
| IEF iShares 7-10 Year Treasury Bond ETF | 8.4 yrs | 0.15% | $41.82B | -1.7% | +4.0% |
| VGSH Vanguard Short-Term Treasury ETF | 1.9 yrs | 0.03% | $39.20B | +2.2% | +4.2% |
| SHY iShares 1-3 Year Treasury Bond ETF | 1.9 yrs | 0.15% | $25.91B | +1.7% | +3.9% |
Questions investors ask
Does VGIT pay monthly dividends?
Yes. VGIT pays income every month, mostly interest from the Treasury notes and bonds it holds. For bond funds, these payouts are often called distributions rather than dividends. Over the 12 months to October 30, 2026, it paid $2.29 per share, a yield of 3.97% on its share price. That figure looks backward. As older bonds mature and the fund reinvests at new rates, its payments can rise or fall. The prospectus warns that income may decline when rates fall.
What's the difference between VGIT and SCHR?
Very little. Schwab Intermediate-Term U.S. Treasury ETF (SCHR) is VGIT's closest match. Both charge 0.03% a year, and in their latest holdings reports both held Treasuries averaging about 5.5 years to maturity. Their returns matched through October 30, 2026: -0.2% over one year and 4.5% a year over three years. The main differences are the sponsor and size. Counting all share classes, the fund behind VGIT held $48.4 billion as of August 31, 2026. SCHR held $13.4 billion as of June 30, 2026.
What is VGIT's expense ratio?
VGIT's expense ratio is 0.03%, according to its prospectus filed December 19, 2025. That is the yearly fee taken from fund assets. The SEC's standard example assumes $10,000 invested, a 5% annual return and all shares redeemed at the end of each period. On that basis, costs total $3 after one year, $10 after three, $17 after five and $39 after ten. That ties SCHR, SPTI and VGSH for the lowest among similar funds. The peer average is 0.08%, and iShares' IEI and IEF charge 0.15%.
Is VGIT good for retirement?
It can work as a diversifier alongside stocks, but it carries interest-rate risk. VGIT holds almost entirely US Treasuries. It gained 5% during the 2020 COVID crash, between the stock market's February peak and March low. But rising rates drove a 10.67% loss in 2022. Its deepest drop was 16.1%, from August 2020 to October 2022, and it had not been recovered as of October 30, 2026. It pays income monthly and charges 0.03% a year. Past results don't predict future ones, so it's worth weighing as part of a whole portfolio.
Why did VGIT lose money in 2022?
Because interest rates rose. Bond prices move opposite to rates, so as yields on new Treasuries climbed, the fund's existing 3-to-10-year notes lost value. VGIT returned -10.67% in 2022, its worst calendar year, including a 5.31% drop in the first quarter. Defaults weren't the problem, since it holds US Treasuries. It took about 34 months from its September 2022 low, until August 2025, to get back to its January 2022 level. Shorter funds such as VGSH, with bonds averaging 1.9 years to maturity, are less sensitive to rate moves.