Overview
Intermediate-term investment grade corporate bonds. 5-10 year maturities. Ideal yield pickup over short-term bonds without extreme duration risk. Vanguard's lowest-cost IG corporate bond fund.
Top Holdings
| Ticker | Holding | Weight |
|---|---|---|
| AAPL 3.35% 27 | Apple Inc. | 0.8% |
| MSFT 2.4% 26 | Microsoft | 0.7% |
| JPM 3.875% 26 | JPMorgan | 0.6% |
| BAC 3.5% 27 | Bank of America | 0.6% |
| T 4.5% 28 | AT&T Inc. | 0.5% |
| CMCSA 3.15% 27 | Comcast | 0.5% |
| GS 4.0% 27 | Goldman Sachs | 0.4% |
| VZ 3.5% 28 | Verizon | 0.4% |
| WFC 4.1% 27 | Wells Fargo | 0.4% |
| C 3.875% 27 | Citigroup | 0.4% |
Fund Details
Investment Thesis
VCIT occupies the most attractive segment of the investment-grade corporate bond market — intermediate maturities where yield pickup over Treasuries is meaningful without taking on the extreme duration risk of long bonds. The 5-10 year maturity band historically delivers the best risk-adjusted yield in the IG corporate market. At 0.04% expense ratio, VCIT is Vanguard's most cost-efficient corporate bond offering, delivering over 2,100 bonds across every major US industry at near-zero annual cost.
Who It's For
Income investors seeking higher yield than government bonds without moving into speculative territory. VCIT suits those building a fixed income ladder who want the middle segment of the yield curve represented at minimal cost. Ideal as the corporate bond component of a diversified bond allocation alongside government bond funds, balancing income generation with manageable interest rate sensitivity.
10-Year History
| Year | Close | % Chg |
|---|---|---|
| 2016 | $83.42 | -- |
| 2017 | $85.18 | +2.1% |
| 2018 | $80.82 | -5.1% |
| 2019 | $88.42 | +9.4% |
| 2020 | $91.82 | +3.8% |
| 2021 | $88.42 | -3.7% |
| 2022 | $75.18 | -15.0% |
| 2023 | $77.82 | +3.5% |
| 2024 | $82.42 | +5.9% |
| 2025 | $90.34 | +9.6% |
| Year | Yield |
|---|---|
| 2016 | 3.18% |
| 2017 | 2.98% |
| 2018 | 3.28% |
| 2019 | 3.08% |
| 2020 | 2.72% |
| 2021 | 2.42% |
| 2022 | 3.28% |
| 2023 | 4.18% |
| 2024 | 4.82% |
| 2025 | 2.88% |
| Year | AUM | % Chg |
|---|---|---|
| 2016 | $24B | -- |
| 2017 | $28B | +16.7% |
| 2018 | $25B | -10.7% |
| 2019 | $32B | +28.0% |
| 2020 | $40B | +25.0% |
| 2021 | $45B | +12.5% |
| 2022 | $38B | -15.6% |
| 2023 | $44B | +15.8% |
| 2024 | $55B | +25.0% |
| 2025 | $61B | +10.9% |
Historical figures are ETFHub estimates modelled from asset-class return patterns and may differ from official fund records. Data as of August 2026.
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