VCIT Vanguard Intermediate-Term Corporate Bond ETF gives you exposure to investment-grade corporate bonds. VCIT tracks the Bloomberg Barclays U.S. 5-10 Year Corporate Bond Index.
VCIT covers over 1,700 bonds vs. BND which covers over 8,200. VCIT has about $17 Billion in assets, which is much smaller than BND.
Most of VCIT bonds are rated BBB or A. It has literally 0 bonds which are rated BB or below. BND also has virtually no bonds rated BB or below.
VCIT expense ratio is 0.05%, the same as BND expense ratio.
Performance wise, VCIT fared better than BND. In the last 5 years, VCIT returned 4.21% vs. BND 2.12%.
But VCIT is also more tax inefficient. VCIT tax-cost ratio is 1.39% vs. BND 1.06%.
And VCIT is also more volatile than BND: its Beta is 1.4 over the last 5 years (40% more volatile than S&P 500!).
How do you think? Which one will you choose?
VCIT covers over 1,700 bonds vs. BND which covers over 8,200. VCIT has about $17 Billion in assets, which is much smaller than BND.
Most of VCIT bonds are rated BBB or A. It has literally 0 bonds which are rated BB or below. BND also has virtually no bonds rated BB or below.
VCIT expense ratio is 0.05%, the same as BND expense ratio.
Performance wise, VCIT fared better than BND. In the last 5 years, VCIT returned 4.21% vs. BND 2.12%.
But VCIT is also more tax inefficient. VCIT tax-cost ratio is 1.39% vs. BND 1.06%.
And VCIT is also more volatile than BND: its Beta is 1.4 over the last 5 years (40% more volatile than S&P 500!).
How do you think? Which one will you choose?
