Vanguard Intermediate-Term Corporate Bond ETF (VCIT): Complete Beginner's Guide
Last updated: March 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% |
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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%
Beginner Suitability Score: 10/10
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.
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.
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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:
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.