Vanguard Intermediate-Term Corporate Bond ETF

VCIT

Market cap $63.9B

The opening act of 2026 has been nothing short of historic for the ETF industry, and fixed income is experiencing one of the strongest starts to a year on record.

VCIT offers a higher yield and slightly better recent returns than VGIT. VGIT experienced a smaller five-year drawdown, signaling lower downside risk.

Both funds carry identical ultra-low expenses, but Vanguard Intermediate-Term Corporate Bond ETF pays a higher yield than Vanguard Total Bond Market ETF. Vanguard Total Bond Market ETF is far larger and more diversified, tracking the entire U.S. investment-grade bond universe.

Another blockbuster year for bond ETFs is in the books. After two straight years of record net inflows, taxable fixed income ETF assets have nearly doubled since 2020 – crossing the $2 trillion mark.

Interest gained from investing in MUB is exempt from federal income tax. VCIT offers a higher dividend yield and lower expense ratio than MUB.

Both VCIT and AGG charge the same low expense ratio, but VCIT offers a higher yield. AGG holds a much broader mix of bonds and has a lower historical drawdown than VCIT.

The exchange-traded fund industry closed 2025 with its strongest year ever for investor demand, gathering $2.37 trillion in net inflows as global assets surged to a record $19.85 trillion, according to a Tuesday ETFGI report. December capped the historic year with $330.

2025 capped off another strong year for fixed income ETFs, as ongoing market uncertainty pushed more investors into the safe confines of bonds. When it came to inflows, it was Vanguard that was well-represented with four funds cracking the top 10.

IGIB charges a slightly higher expense ratio than VCIT but offers a broader portfolio with nearly nine times as many holdings VCIT yields more and also delivered a higher one-year total return as of Dec. 18, 2025 Both ETFs posted similar five-year drawdowns, but IGIB's lower beta points to less price volatility These 10 Stocks Could Mint the Next Wave of Millionaires ›

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