Vanguard Intermediate-Term Corporate Bond ETF (VCIT): Complete Beginner's Guide

Vanguard Intermediate-Term Corporate Bond ETF (VCIT) is a corp bond ETF from Vanguard with an expense ratio of 0.04% and $45.0B in assets under management. Our Beginner Suitability Score: 10/10 (Great for Beginners). 5-year annualized return: 1.50%.

Last updated: April 2026

Vanguard • Corp Bond

Expense Ratio

0.04%

AUM

$45.0B

Dividend Yield

4.00%

Inception

2009

Beginner Score

10/10

What is Vanguard Intermediate-Term Corporate Bond ETF?

VCIT tracks the Bloomberg U.S. 5-10 Year Corporate Bond Index, investing in investment-grade corporate bonds with intermediate maturities. Corporate bonds typically offer higher yields than government bonds because investors earn a credit spread for taking on the risk that companies could default. This fund provides a way to earn extra income from highly rated corporate debt without taking on excessive duration or credit risk.

VCIT is managed by Vanguard and has been available since 2009. With $45.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.04%, which means for every $10,000 you invest, you pay approximately $4 per year in management fees.

VCIT at a Glance — Key Metrics

Expense Ratio	0.04%
Total Holdings	2,100
P/E Ratio	N/A
Beta	0.20
Dividend Yield	4.00%
AUM	$45.0B
Inception Year	2009
Issuer	Vanguard

Top 10 Holdings in VCIT

VCIT holds 2,100 different securities. Here are the largest positions that make up the core of this fund:

#	Company	Ticker	Weight
1	JPMorgan Chase 4.85% 2033	JPM 4.85 33	0.60%
2	Bank of America 5.015% 2033	BAC 5.015 33	0.50%
3	Goldman Sachs 4.75% 2032	GS 4.75 32	0.50%
4	Apple 3.85% 2033	AAPL 3.85 33	0.50%
5	Microsoft 3.5% 2032	MSFT 3.5 32	0.40%
6	Wells Fargo 5.1% 2034	WFC 5.1 34	0.40%
7	Citigroup 4.65% 2033	C 4.65 33	0.40%
8	Amazon 4.7% 2032	AMZN 4.7 32	0.40%
9	Morgan Stanley 4.9% 2034	MS 4.9 34	0.30%
10	AT&T 4.35% 2032	T 4.35 32	0.30%

VCIT Top 10 Holdings

VCIT's top holding is JPMorgan Chase 4.85% 2033 (JPM 4.85 33) at 0.60%, followed by Bank of America 5.015% 2033 (BAC 5.015 33) at 0.50% and Goldman Sachs 4.75% 2032 (GS 4.75 32) at 0.50%. The top 10 holdings account for 4.30% of the fund's 2,100 total positions.

See how VCIT's holdings overlap with similar ETFs →

View data table

Rank	Company	Ticker	Weight
1	JPMorgan Chase 4.85% 2033	JPM 4.85 33	0.60%
2	Bank of America 5.015% 2033	BAC 5.015 33	0.50%
3	Goldman Sachs 4.75% 2032	GS 4.75 32	0.50%
4	Apple 3.85% 2033	AAPL 3.85 33	0.50%
5	Microsoft 3.5% 2032	MSFT 3.5 32	0.40%
6	Wells Fargo 5.1% 2034	WFC 5.1 34	0.40%
7	Citigroup 4.65% 2033	C 4.65 33	0.40%
8	Amazon 4.7% 2032	AMZN 4.7 32	0.40%
9	Morgan Stanley 4.9% 2034	MS 4.9 34	0.30%
10	AT&T 4.35% 2032	T 4.35 32	0.30%

Rank	Company	Ticker	Weight
1	JPMorgan Chase 4.85% 2033	JPM 4.85 33	0.60%
2	Bank of America 5.015% 2033	BAC 5.015 33	0.50%
3	Goldman Sachs 4.75% 2032	GS 4.75 32	0.50%
4	Apple 3.85% 2033	AAPL 3.85 33	0.50%
5	Microsoft 3.5% 2032	MSFT 3.5 32	0.40%
6	Wells Fargo 5.1% 2034	WFC 5.1 34	0.40%
7	Citigroup 4.65% 2033	C 4.65 33	0.40%
8	Amazon 4.7% 2032	AMZN 4.7 32	0.40%
9	Morgan Stanley 4.9% 2034	MS 4.9 34	0.30%
10	AT&T 4.35% 2032	T 4.35 32	0.30%

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VCIT Performance History

Here's how VCIT has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:

YTD

0.80%

1 Year

5.00%

3 Year

-1.00%

5 Year

1.50%

10 Year

2.50%

VCIT Performance Returns

VCIT has returned 1.50% annualized over 5 years and 2.50% over 10 years. YTD return is 0.80%.

Compare VCIT with other ETFs →

View data table

Period	Return
YTD	0.80%
1 Year	5.00%
3 Year	-1.00%
5 Year	1.50%
10 Year	2.50%

Rank	Company	Ticker	Weight
1	JPMorgan Chase 4.85% 2033	JPM 4.85 33	0.60%
2	Bank of America 5.015% 2033	BAC 5.015 33	0.50%
3	Goldman Sachs 4.75% 2032	GS 4.75 32	0.50%
4	Apple 3.85% 2033	AAPL 3.85 33	0.50%
5	Microsoft 3.5% 2032	MSFT 3.5 32	0.40%
6	Wells Fargo 5.1% 2034	WFC 5.1 34	0.40%
7	Citigroup 4.65% 2033	C 4.65 33	0.40%
8	Amazon 4.7% 2032	AMZN 4.7 32	0.40%
9	Morgan Stanley 4.9% 2034	MS 4.9 34	0.30%
10	AT&T 4.35% 2032	T 4.35 32	0.30%

Beginner Suitability Score: 10/10

Great for Beginners

Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.

VCIT scores 10/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 2,100 holdings, and has been available since 2009, giving it a proven track record.

How to Buy VCIT — Step by Step

Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
Search for "VCIT" — Use the search bar in your brokerage platform to find Vanguard Intermediate-Term Corporate Bond ETF.
Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.

VCIT Sector Allocation

Here's how VCIT distributes its investments across different sectors of the economy:

VCIT Sector Allocation

VCIT's largest sector allocation is Financials/Banking at 35.0%, followed by Technology at 10.0% and Healthcare/Pharma at 9.0%.

View data table

Sector	Weight
Financials/Banking	35.0%
Technology	10.0%
Healthcare/Pharma	9.0%
Utilities	9.0%
Consumer Non-Cyclical	8.0%
Communications	8.0%
Energy	7.0%
Industrials	7.0%
Consumer Cyclical	4.0%
Real Estate	3.0%

Rank	Company	Ticker	Weight
1	JPMorgan Chase 4.85% 2033	JPM 4.85 33	0.60%
2	Bank of America 5.015% 2033	BAC 5.015 33	0.50%
3	Goldman Sachs 4.75% 2032	GS 4.75 32	0.50%
4	Apple 3.85% 2033	AAPL 3.85 33	0.50%
5	Microsoft 3.5% 2032	MSFT 3.5 32	0.40%
6	Wells Fargo 5.1% 2034	WFC 5.1 34	0.40%
7	Citigroup 4.65% 2033	C 4.65 33	0.40%
8	Amazon 4.7% 2032	AMZN 4.7 32	0.40%
9	Morgan Stanley 4.9% 2034	MS 4.9 34	0.30%
10	AT&T 4.35% 2032	T 4.35 32	0.30%

Dollar Cost Averaging Into VCIT

Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):

Monthly	10 Years	20 Years	30 Years
$100/mo	$18,417	$59,295	$150,030
$250/mo	$46,041	$148,237	$375,074
$500/mo	$92,083	$296,474	$750,148

*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.

Fee impact: With VCIT's expense ratio of 0.04%, a $10,000 investment would lose approximately $344 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.

VCIT Fee Impact Over 20 Years

VCIT's expense ratio of 0.04% costs $344 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,266.

Understand expense ratios →Calculate your returns →

View data table

Year	Without Fees	With Fees	Fee Cost
0	$10,000	$10,000	$0
5	$14,693	$14,666	$27
10	$21,589	$21,509	$80
15	$31,722	$31,546	$176
20	$46,610	$46,266	$344

Rank	Company	Ticker	Weight
1	JPMorgan Chase 4.85% 2033	JPM 4.85 33	0.60%
2	Bank of America 5.015% 2033	BAC 5.015 33	0.50%
3	Goldman Sachs 4.75% 2032	GS 4.75 32	0.50%
4	Apple 3.85% 2033	AAPL 3.85 33	0.50%
5	Microsoft 3.5% 2032	MSFT 3.5 32	0.40%
6	Wells Fargo 5.1% 2034	WFC 5.1 34	0.40%
7	Citigroup 4.65% 2033	C 4.65 33	0.40%
8	Amazon 4.7% 2032	AMZN 4.7 32	0.40%
9	Morgan Stanley 4.9% 2034	MS 4.9 34	0.30%
10	AT&T 4.35% 2032	T 4.35 32	0.30%

Pros and Cons of VCIT

Pros

✓Higher yields than comparable Treasury bonds due to corporate credit spread
✓Ultra-low 0.04% expense ratio for an investment-grade corporate bond fund
✓Over 2,100 holdings provide excellent diversification across issuers and industries
✓Investment-grade focus keeps credit risk manageable while boosting income

Cons

✗Credit spreads can widen during recessions, causing prices to fall alongside stocks
✗Intermediate duration means meaningful sensitivity to interest rate movements
✗Heavy financial sector bond concentration creates systemic risk during banking stress

VCIT vs Similar ETFs

See how VCIT stacks up against similar funds:

VCIT vs LQDCompare →

Frequently Asked Questions

Is VCIT a good ETF for beginners?▾

VCIT has a Beginner Suitability Score of 10/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.

What is the expense ratio of VCIT?▾

VCIT has an expense ratio of 0.04%. This means for every $10,000 you invest, you pay approximately $4 per year in fees. This is considered very low and cost-efficient.

How much money do I need to invest in VCIT?▾

You can invest in VCIT with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.

Does VCIT pay dividends?▾

Yes, VCIT pays dividends with a current yield of approximately 4.00%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.

What are the top holdings in VCIT?▾

The top holdings in VCIT include JPMorgan Chase 4.85% 2033 (0.60%), Bank of America 5.015% 2033 (0.50%), Goldman Sachs 4.75% 2032 (0.50%), and more. The fund holds 2,100 total positions, providing broad diversification across many companies.

What sectors does VCIT invest in?▾

VCIT's largest sector allocations are Financials/Banking (35.00%), Technology (10.00%), Healthcare/Pharma (9.00%). This sector distribution shows a focus on financials/banking stocks.

How much do VCIT's fees cost over time?▾

With an expense ratio of 0.04%, a $10,000 investment in VCIT would lose approximately $344 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.