# How Vanguard Intermediate-Term Corporate Bond ETF (VCIT) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/vcit
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VCIT alone. It places VCIT (Vanguard Intermediate-Term Corporate Bond ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where VCIT stands in the market, and of the alternatives worth a closer look.

Period covered: VCIT's full trading record, from November 2009 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** VCIT has gone against the market, falling 3.6% over the past 6 months while the S&P 500 rose 9.1%. On the flip side, it sits 4.3% below its record high, and the S&P 500 is similarly close to its own.
- **Fund or market?:** VCIT fell 2.7% over the past 3 months, in line with the investment grade bonds ETF LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF), which fell 2.4%. The S&P 500 rose 3.9%.
- **Long term:** VCIT turned $10,000 into $12,600 over the past decade, against $42,100 in the S&P 500. VCIT's 10-year return of 26.4% puts it behind 85% of the ETFs with at least $100 million in assets with that much history. The S&P 500 returned 321%.
- **In a crash:** Across five sell-offs, VCIT has typically lost about 32% as much as the S&P 500. In the Covid crash, VCIT fell 16.9%, against 33.7% for the S&P 500. That was more than VCSH (Vanguard Short-Term Corporate Bond ETF, 12.9%) but less than LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF, 21.8%).
- **Diversification:** VCIT is some diversification, but not a hedge: a correlation of 0.68 with the S&P 500 over 5 years and 0.69 with the total US market, less closely than 60% of ETFs with at least $100 million in assets. When the S&P 500 had a down month, VCIT usually fell with it (17 of 22 months).
- **Better options**
  - **Popular alternatives:** SPSB (State Street SPDR Portfolio Short Term Corporate Bond ETF), LQDH (iShares Interest Rate Hedged Corporate Bond ETF) and BSV (Vanguard Short-Term Bond ETF) earned more than VCIT with less volatility over the past 5 years. SPSB returned 2.8% a year at 2.0% volatility, against 0.6% a year at 6.7%.
  - **Nearby categories and themes:** TFLO (iShares Treasury Floating Rate Bond ETF, treasury bonds) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF, treasury bonds) earned more than VCIT with less volatility over the past 5 years. TFLO returned 3.9% a year at 0.4% volatility, against 0.6% a year at 6.7%.
  - **Whole market:** 78 of the 3,633 stocks and funds worth at least $500 million earned more than VCIT with less volatility over the past 5 years, among them SGOV (iShares 0-3 Month Treasury Bond ETF), VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and BSV (Vanguard Short-Term Bond ETF).

## How much would $10,000 in VCIT have grown?

This chart tracks a hypothetical $10,000 investment in VCIT over the past 16 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VCIT over the same span and VCIT's popular alternatives, among those that traded for the entire period.

- $10,000 invested in VCIT at the end of September 2010 would have grown to $17,051 by September 2026, less than the $88,503 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of VCIT, and NVDA finished highest, at $8,585,151.

## VCIT at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- VCIT's deepest decline since it began trading in 2009 was 20.6%, from August 2021 to October 2022. It took about three years from the low to climb back to its old high.
- Over 16 full calendar years, VCIT's best was 2019, when it returned 14.1%, and its worst was 2022, when it lost 14.0%. It lost money in four of those years.
- VCIT is 4.3% below its all-time high.

- Type: ETF, Bonds (Asset Management)
- Trading since: November 23, 2009
- Assets: $69B
- Expense ratio: 0.03%
- Volatility (5 years): 6.7%; Sharpe ratio: 0.13
- Worst decline ever: −20.6%, from August 2, 2021 to October 20, 2022; back at its high by July 29, 2025

| Period | VCIT total return |
| --- | --- |
| 1 month | −1.0% |
| 3 months | −2.7% |
| 6 months | −3.6% |
| year to date | −2.8% |
| 1 year | −2.6% |
| 3 years | +21.5% |
| 5 years | +3.2% |
| 10 years | +26.4% |

## VCIT against the whole market

Where VCIT ranks among every stock and fund, and what across the market has done better.

### How does VCIT rank among all ETFs?

This section ranks VCIT on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- VCIT's 1-year return ranks in the bottom 10% of the 2,485 ETFs with at least $100 million in assets with 1 year of history.
- VCIT's worst decline of the past 10 years ranks in the top 11% of the 951 ETFs with at least $100 million in assets, where the top fell the least.

| Measure | VCIT | Rank |
| --- | --- | --- |
| 1-year return | −2.6% | 2,248 of 2,485 (top 91%) |
| 3-year return | +21.5% | 1,551 of 1,949 (top 80%) |
| 5-year return | +3.2% | 1,321 of 1,560 (top 85%) |
| 10-year return | +26.4% | 816 of 958 (top 86%) |
| Volatility, 5 years | 6.7% | 224 of 1,560 (top 15%) |
| Sharpe ratio, 5 years | 0.13 | 1,334 of 1,560 (top 86%) |
| Worst decline, past 10 years | −20.6% | 107 of 951 (top 12%) |

### What has beaten VCIT on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 78 ETFs worth at least $500 million sit in the green region: each earned more than VCIT over the past 5 years with smaller price swings. That is 2% of the 3,633 screened.
- Among those with at least half VCIT's swings, BALT has the best return for its risk: 6.3% a year at 3.3% volatility, 50% less than VCIT's 6.7%, and a Sharpe ratio (return above cash per unit of volatility) of 1.85 against 0.13 for VCIT.
- Among VCIT's popular alternatives, SPSB, LQDH and IGSB are in the region. SPSB earned 2.8% a year against 0.6% a year for VCIT, at 2.0% volatility, 69% less than VCIT's 6.7%.

### Is there a better investment than VCIT?

The table below lists investments that beat VCIT over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among VCIT's popular alternatives, SPSB, LQDH and BSV earned more than VCIT with less volatility over the past 5 years. SPSB returned 2.8% a year at 2.0% volatility, against 0.6% a year at 6.7%.
- Looking beyond its popular alternatives, TFLO (treasury bonds) and VTIP (treasury bonds) earned more than VCIT with less volatility over the past 5 years. TFLO returned 3.9% a year at 0.4% volatility, against 0.6% a year at 6.7%.
- Across the whole market, 78 of the 3,633 stocks and funds worth at least $500 million earned more than VCIT with less volatility over the past 5 years, among them SGOV, VTIP and BSV.

The 15 strongest of 78 investments that beat VCIT over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with VCIT | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| VCIT: Vanguard Intermediate-Term Corporate Bond ETF (this page) |  | +0.6% | 6.7% | 0.13 | −20.6% | +26.4% |  |  |
| TFLO: iShares Treasury Floating Rate Bond ETF | Treasury Bonds | +3.9% | 0.4% | 10.49 | −0.2% | +28.0% | 0.18 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| NEAR: iShares Short Duration Bond Active ETF | Short-Term Bonds | +3.9% | 1.4% | 2.71 | −9.6% | +31.8% | 0.69 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| BALT: Innovator Defined Wealth Shield ETF | Crypto | +6.3% | 3.3% | 1.85 | −4.9% | — | 0.65 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| VRIG: Invesco Variable Rate Investment Grade ETF | Bonds | +4.7% | 1.3% | 3.51 | −13.1% | +40.5% | 0.30 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FLOT: iShares Floating Rate Bond ETF | Floating Rate Bonds | +4.5% | 1.8% | 2.48 | −13.5% | +35.9% | 0.26 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FLRN: State Street SPDR Bloomberg Investment Grade Floating Rate ETF | Bonds | +4.5% | 1.7% | 2.58 | −14.7% | +35.9% | 0.32 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| RAVI: Northern Trust Ultra-Short Fixed Income ETF | Bonds | +3.8% | 1.4% | 2.61 | −3.7% | +30.8% | 0.56 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VTIP](https://easycompare.io/research/vtip): Vanguard Short-Term Inflation-Protected Securities ETF | Treasury Bonds | +2.7% | 2.9% | 0.94 | −6.3% | +32.7% | 0.73 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| SPSB: State Street SPDR Portfolio Short Term Corporate Bond ETF | Investment Grade Bonds | +2.8% | 2.0% | 1.38 | −11.8% | +29.2% | 0.93 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| JAAA: Janus Henderson AAA CLO ETF | CLO Bonds | +5.1% | 1.7% | 2.98 | −2.6% | — | 0.30 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| IBHF: iShares iBonds 2026 Term High Yield and Income ETF | Bonds | +4.0% | 5.8% | 0.71 | −11.2% | — | 0.77 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| STPZ: PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund | Bonds | +2.3% | 3.3% | 0.70 | −6.8% | +28.7% | 0.72 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| NFLT: Virtus Newfleet Multi-Sector Bond ETF | Bonds | +2.7% | 4.6% | 0.61 | −15.1% | +41.0% | 0.93 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FLRT: Pacer Aristotle Pacific Floating Rate High Income ETF | Financials | +6.0% | 2.3% | 2.55 | −21.0% | +58.0% | 0.44 | Higher return, lower volatility; Higher return in most periods |
| FLTR: VanEck IG Floating Rate ETF | Multi-Asset | +4.8% | 2.1% | 2.20 | −17.8% | +41.8% | 0.21 | Higher return, lower volatility; Higher return in most periods |

## VCIT against its popular alternatives

The investments people most often weigh against VCIT, compared period by period and year by year.

### How do VCIT's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Seven of the 19 popular alternatives, led by IGBH, LQDH and SPSB, were both more rewarding and calmer than VCIT over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, VCIT returned 0.6% a year, less than the S&P 500's 12.7%, with lower volatility (6.7% against 17.1%).

### Has VCIT consistently beaten its popular alternatives?

This section compares VCIT with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Eight of the 23 popular alternatives, led by IGBH, LQDH and HYG, outperformed VCIT in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- IGBH, LQDH and HYG outperformed VCIT in every long-term period and in all but one short-term period, the most consistent record in the group.
- SPSB, IGSB and VCSH earned more for the risk they took than VCIT (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of VCIT | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| VCIT: Vanguard Intermediate-Term Corporate Bond ETF (this page) | −2.6% | +21.5% | +3.2% | +26.4% |  |  | 0.13 |
| IGBH: iShares Interest Rate Hedged Long-Term Corporate Bond ETF | +5.2% | +25.8% | +30.3% | +61.0% | 5/5 short-term, 3/3 long-term | all-weather | 0.92 |
| LQDH: iShares Interest Rate Hedged Corporate Bond ETF | +4.9% | +23.9% | +29.5% | +55.5% | 5/5 short-term, 3/3 long-term | all-weather | 1.21 |
| HYG: iShares iBoxx $ High Yield Corporate Bond ETF | +0.7% | +27.5% | +16.8% | +49.5% | 4/5 short-term, 3/3 long-term | all-weather | 0.45 |
| IGSB: iShares 1-5 Year Investment Grade Corporate Bond ETF | +0.7% | +17.3% | +12.4% | +29.4% | 5/5 short-term, 2/3 long-term | consistent | 0.80 |
| SPSB: State Street SPDR Portfolio Short Term Corporate Bond ETF | +2.0% | +16.3% | +14.9% | +29.2% | 5/5 short-term, 2/3 long-term | consistent | 1.38 |
| [VCSH](https://easycompare.io/research/vcsh): Vanguard Short-Term Corporate Bond ETF | +0.7% | +17.0% | +12.1% | +28.6% | 5/5 short-term, 2/3 long-term | consistent | 0.80 |
| SKOR: Northern Trust Credit-Scored US Corporate Bond ETF | −0.8% | +19.1% | +7.8% | +28.7% | 4/5 short-term, 2/3 long-term | consistent | 0.36 |
| SPIB: State Street SPDR Portfolio Intermediate Term Corporate Bond ETF | −0.4% | +19.4% | +8.1% | +28.4% | 4/5 short-term, 2/3 long-term | consistent | 0.37 |
| IGIB: iShares 5-10 Year Investment Grade Corporate Bond ETF | −2.7% | +21.9% | +3.9% | +28.8% | 0/5 short-term, 2/3 long-term |  | 0.15 |
| [BSV](https://easycompare.io/research/bsv): Vanguard Short-Term Bond ETF | +0.7% | +14.1% | +8.8% | +20.5% | 5/5 short-term, 1/3 long-term |  | 0.63 |
| SCHI: Schwab 5-10 Year Corporate Bond ETF | −2.3% | +22.1% | +3.8% | — | 0/5 short-term, 1/3 long-term |  | 0.14 |
| [BND](https://easycompare.io/research/bnd): Vanguard Total Bond Market ETF | −2.1% | +15.7% | −1.8% | +13.2% | 4/5 short-term, 0/3 long-term |  | -0.03 |
| IGEB: iShares Investment Grade Systematic Bond ETF | −2.1% | +21.3% | +2.6% | — | 4/5 short-term, 0/3 long-term |  | 0.11 |
| CORP: PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund | −2.2% | +20.0% | +1.4% | +25.9% | 3/5 short-term, 0/3 long-term |  | 0.07 |
| [VGIT](https://easycompare.io/research/vgit): Vanguard Intermediate-Term Treasury ETF | −2.3% | +12.6% | −0.7% | +10.5% | 3/5 short-term, 0/3 long-term |  | 0.00 |
| GIGB: Goldman Sachs Access Investment Grade Corporate Bond ETF | −2.3% | +19.5% | −0.9% | — | 3/5 short-term, 0/3 long-term |  | 0.01 |
| USIG: iShares Broad USD Investment Grade Corporate Bond ETF | −2.5% | +19.7% | +0.3% | +23.5% | 2/5 short-term, 0/3 long-term |  | 0.04 |
| VTC: Vanguard Total Corporate Bond ETF | −2.7% | +19.2% | −0.9% | — | 2/5 short-term, 0/3 long-term |  | 0.01 |
| LQD: iShares iBoxx $ Investment Grade Corporate Bond ETF | −3.9% | +19.7% | −4.3% | +20.5% | 0/5 short-term, 0/3 long-term |  | -0.06 |
| [BIV](https://easycompare.io/research/biv): Vanguard Intermediate-Term Bond ETF | −2.7% | +16.8% | −0.7% | +15.7% | 0/5 short-term, 0/3 long-term |  | 0.01 |
| IGLB: iShares 10+ Year Investment Grade Corporate Bond ETF | −6.3% | +21.1% | −14.4% | +14.1% | 0/5 short-term, 0/3 long-term |  | -0.19 |
| VCLT: Vanguard Long-Term Corporate Bond ETF | −6.9% | +20.0% | −15.2% | +13.7% | 0/5 short-term, 0/3 long-term |  | -0.20 |
| SPLB: State Street SPDR Portfolio Long Term Corporate Bond ETF | −6.6% | +20.4% | −15.3% | +12.9% | 0/5 short-term, 0/3 long-term |  | -0.20 |

### How did VCIT do year by year?

This table shows each investment's total return in every full calendar year since 2010, along with where VCIT ranked among its popular alternatives each year.

- VCIT finished ahead of the S&P 500 in three of its 16 full calendar years, and behind it in each of the last three.
- Ranked against its popular alternatives each year, VCIT finished in the top quarter in three of 16 years and in the bottom quarter in no. In 2025, it ranked 2 of 20.
- Among its popular alternatives, IGBH came out ahead of VCIT most often, in six of the ten years both traded.

| Year | VCIT | SPY |
| --- | --- | --- |
| 2025 | +9.3% | +17.7% |
| 2024 | +3.2% | +24.9% |
| 2023 | +9.0% | +26.2% |
| 2022 | −14.0% | −18.2% |
| 2021 | −1.8% | +28.7% |
| 2020 | +9.4% | +18.3% |
| 2019 | +14.1% | +31.2% |
| 2018 | −1.8% | −4.6% |
| 2017 | +5.3% | +21.7% |
| 2016 | +5.3% | +12.0% |

## Risk and diversification

How VCIT has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were VCIT's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In four of VCIT's five worst declines, the S&P 500 held up better over the same dates.
- The slowest recovery came after VCIT fell 20.6% from August 2021 to October 2022; it did not regain that peak until July 2025, three years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −20.6% | August 2, 2021 | October 20, 2022 | July 29, 2025 | −15.0% | 2022 bear market |
| −16.9% | March 4, 2020 | March 20, 2020 | June 9, 2020 | −26.4% | Covid crash |
| −7.4% | May 1, 2013 | July 5, 2013 | May 1, 2014 | +3.5% |  |
| −5.8% | November 4, 2010 | December 15, 2010 | May 5, 2011 | +1.5% |  |
| −5.3% | February 27, 2026 | September 30, 2026 | not yet | +12.0% |  |

### How did VCIT do in stock market crashes?

This section measures how far VCIT, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- VCIT fell less than the S&P 500 in all eight crashes it has traded through. The clearest case was the late-2018 sell-off, when VCIT fell 1.2% and the S&P 500 fell 19.3%.
- Among its popular alternatives, IGSB held up best, falling less than VCIT in six of the eight crashes they both traded through.
- VCIT began trading after the 2008 financial crisis, but eight of its popular alternatives lived through it. The mildest fall among them was BSV's 7.0%, against 55.2% for the S&P 500.

| Crash | Dates | VCIT fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | not trading | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | 0.0% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −3.0% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −2.0% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −1.0% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −1.2% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −16.9% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −17.4% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | 0.0% | −3.4% |

### How closely does VCIT move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Over the past 10 years, VCIT captured 22% of the S&P 500's gains in rising months and 29% of its losses in falling months, with a beta of 0.26. Its share of the market's losses was slightly larger than its share of the gains.
- Nine of the 17 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than VCIT's 0.76, led by SPSB, BSV and IGSB.
- LQDH took just 22% of the S&P 500's losses, against 29% for VCIT, while still keeping 26% of its gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| VCIT: Vanguard Intermediate-Term Corporate Bond ETF (this page) | 22.0% | 29.0% | 0.26 |
| IGBH: iShares Interest Rate Hedged Long-Term Corporate Bond ETF | 33.0% | 32.0% | 0.33 |
| LQDH: iShares Interest Rate Hedged Corporate Bond ETF | 26.0% | 22.0% | 0.26 |
| HYG: iShares iBoxx $ High Yield Corporate Bond ETF | 34.0% | 40.0% | 0.39 |
| IGSB: iShares 1-5 Year Investment Grade Corporate Bond ETF | 13.0% | 8.0% | 0.11 |
| SPSB: State Street SPDR Portfolio Short Term Corporate Bond ETF | 10.0% | 4.0% | 0.07 |
| SKOR: Northern Trust Credit-Scored US Corporate Bond ETF | 17.0% | 17.0% | 0.18 |
| IGIB: iShares 5-10 Year Investment Grade Corporate Bond ETF | 22.0% | 29.0% | 0.27 |
| [BSV](https://easycompare.io/research/bsv): Vanguard Short-Term Bond ETF | 7.0% | 3.0% | 0.04 |
| [BND](https://easycompare.io/research/bnd): Vanguard Total Bond Market ETF | 13.0% | 19.0% | 0.15 |
| CORP: PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund | 22.0% | 30.0% | 0.26 |
| [VGIT](https://easycompare.io/research/vgit): Vanguard Intermediate-Term Treasury ETF | 6.0% | 7.0% | 0.04 |
| USIG: iShares Broad USD Investment Grade Corporate Bond ETF | 22.0% | 31.0% | 0.27 |
| LQD: iShares iBoxx $ Investment Grade Corporate Bond ETF | 25.0% | 39.0% | 0.33 |
| [BIV](https://easycompare.io/research/biv): Vanguard Intermediate-Term Bond ETF | 13.0% | 18.0% | 0.15 |
| IGLB: iShares 10+ Year Investment Grade Corporate Bond ETF | 33.0% | 58.0% | 0.46 |
| VCLT: Vanguard Long-Term Corporate Bond ETF | 33.0% | 59.0% | 0.46 |
| SPLB: State Street SPDR Portfolio Long Term Corporate Bond ETF | 33.0% | 60.0% | 0.47 |

### What diversifies VCIT?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- FIX made money in four of the four calendar years in which VCIT lost money.
- Among large ETFs, DXJ, MLPX and GLD have moved largely independently of VCIT over the past 5 years, with correlations of 0.40 or lower, and each still earned a positive 5-year return.
- Moving a fifth of the money in VCIT into DXJ would have cut the portfolio's volatility by 5% over the past 5 years and raised its annual return (+0.3% for VCIT alone, +5.3% for the mix).

| Investment | Correlation with VCIT | 5Y return | Volatility | Sharpe | Rose in VCIT's 4 down years |
| --- | --- | --- | --- | --- | --- |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.29 | +225% | 19.1% | 1.34 | 3 of 4 |
| MLPX: Global X - MLP & Energy Infrastructure ETF | 0.40 | +135% | 19.7% | 0.97 | 2 of 4 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.39 | +126% | 18.9% | 0.96 | 0 of 4 |
| SPMO: Invesco S&P 500 Momentum ETF | 0.47 | +136% | 20.8% | 0.93 | 1 of 4 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.14 | +177% | 25.5% | 0.93 | 3 of 4 |
| PPA: Invesco Aerospace & Defense ETF | 0.49 | +113% | 18.9% | 0.90 | 3 of 4 |
| AMLP: Alerian MLP ETF | 0.27 | +111% | 18.9% | 0.89 | 3 of 4 |
| PTLC: Pacer Trendpilot US Large Cap ETF | 0.47 | +57.4% | 11.8% | 0.83 | 2 of 4 |

## Common questions

### What was VCIT's worst drawdown?

VCIT's deepest decline since it began trading in 2009 was 20.6%, from August 2021 to October 2022. It took about three years from the low to climb back to its old high. Because VCIT launched in November 2009, that record does not include the dot-com bust or the 2008 financial crisis.

### What were VCIT's best and worst years?

Over 16 full calendar years, VCIT's best year was 2019, when it returned 14.1%. Its worst was 2022, with a return of -14.0%.

### Is there a better investment than VCIT?

Among VCIT's popular alternatives, SPSB, LQDH and BSV earned more than VCIT with less volatility over the past 5 years. SPSB returned 2.8% a year at 2.0% volatility, against 0.6% a year at 6.7%. Looking beyond its popular alternatives, TFLO (treasury bonds) and VTIP (treasury bonds) earned more than VCIT with less volatility over the past 5 years. TFLO returned 3.9% a year at 0.4% volatility, against 0.6% a year at 6.7%.

### Is VCIT more volatile than the S&P 500?

No. VCIT's volatility over the past 5 years was 6.7%, 39% of the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VCIT's return lands within 6.7% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is VCIT's Sharpe ratio?

VCIT's Sharpe ratio over the past 5 years was 0.13, against 0.79 for the S&P 500, so VCIT earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is VCIT with the S&P 500?

Over the past 5 years, VCIT's monthly returns had a correlation of 0.68 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against VCIT instead: the lower it is, the more that option would diversify a VCIT holding.

### What are the best alternatives to VCIT?

Of the 23 popular alternatives we compared, eight outperformed VCIT in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: IGBH, LQDH and HYG.

### Did VCIT outperform the S&P 500?

VCIT finished ahead of the S&P 500 (SPY) in three of 16 full calendar years. In 2025, it returned +9.3%, against +17.7% for the index.

### How did VCIT do in stock market crashes?

VCIT fell less than the S&P 500 (SPY) in eight of the eight major crashes it has traded through, and further in no. The clearest case was the late-2018 sell-off, when VCIT fell 1.2% and the S&P 500 fell 19.3%.

### What diversifies VCIT?

These had a low correlation with VCIT over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.29), MLPX (correlation 0.40) and GLD (correlation 0.39); among large stocks, CAH (correlation 0.25), CLS (correlation 0.16) and FIX (correlation 0.23). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/vcit
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against VCIT live: https://betterthanspy.com/?b=VCIT&utm_source=easycompare&utm_medium=research