# VCIT alternatives: 8 similar ETFs compared

> ETFs similar to VCIT, closest first, with each fund's fee, what it tracks, and returns and worst drops on the same dates as VCIT. Updated daily.

The ETFs most like VCIT are LQD, AGG and BND. LQD holds bonds from large US companies with strong credit ratings, like VCIT.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 16, 2026.

## Key points

- 8 funds can stand in for VCIT: 1 of the same kind and 7 related funds.
- VCIT charges 0.03% a year (about $3 on $10,000).
- LQD moved most like VCIT: a daily correlation of 0.97 over about the last five years.
- Returns and drops for each pair use the same dates for both funds.

## VCIT alternatives at a glance

Each fund below can stand in for VCIT, closest first. "Same kind" funds hold the same kind of bonds through a different index. "Related" funds make a different bet that often moves the same way.

| ETF | How close | Yearly fee | Fee on $10,000 | Tracks |
| --- | --- | --- | --- | --- |
| **VCIT** | This fund | 0.03% | $3 | Bloomberg U.S. 5-10 Year Corporate Bond Index |
| [LQD](https://tactfolio.com/etf/LQD.md) | Same kind of fund | 0.14% | $14 | iBoxx USD Liquid Investment Grade Index |
| [AGG](https://tactfolio.com/etf/AGG.md) | Related fund | 0.03% | $3 | Bloomberg US Aggregate Bond Index |
| [BND](https://tactfolio.com/etf/BND.md) | Related fund | 0.03% | $3 | Bloomberg U.S. Aggregate Float Adjusted Index |
| [SCHZ](https://tactfolio.com/etf/SCHZ.md) | Related fund | 0.03% | $3 | Bloomberg US Aggregate Bond Index |
| [IUSB](https://tactfolio.com/etf/IUSB.md) | Related fund | 0.06% | $6 | Bloomberg U.S. Universal Index |
| [HYG](https://tactfolio.com/etf/HYG.md) | Related fund | 0.49% | $49 | iBoxx USD Liquid High Yield Index |
| [JNK](https://tactfolio.com/etf/JNK.md) | Related fund | 0.4% | $40 | Bloomberg High Yield Very Liquid Index |
| [USHY](https://tactfolio.com/etf/USHY.md) | Related fund | 0.08% | $8 | ICE BofA US High Yield Constrained Index |

Fees come from each fund company, checked on the dates shown on each fund's page.

## How VCIT and its alternatives did over the same dates

Each row measures the alternative and VCIT on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

| ETF | Moves with VCIT | Per year | VCIT per year | Worst drop | VCIT worst drop | Since |
| --- | --- | --- | --- | --- | --- | --- |
| [LQD](https://tactfolio.com/etf/LQD.md) | 0.97 | 3.6% | 4.0% | −24.9% | −20.6% | November 2009 |
| [AGG](https://tactfolio.com/etf/AGG.md) | 0.96 | 2.3% | 4.0% | −18.4% | −20.6% | November 2009 |
| [BND](https://tactfolio.com/etf/BND.md) | 0.96 | 2.3% | 4.0% | −18.6% | −20.6% | November 2009 |
| [SCHZ](https://tactfolio.com/etf/SCHZ.md) | 0.96 | 1.9% | 3.5% | −18.7% | −20.6% | July 2011 |
| [IUSB](https://tactfolio.com/etf/IUSB.md) | 0.96 | 2.0% | 2.9% | −17.9% | −20.6% | June 2014 |
| [HYG](https://tactfolio.com/etf/HYG.md) | 0.70 | 5.3% | 4.0% | −22.0% | −20.6% | November 2009 |
| [JNK](https://tactfolio.com/etf/JNK.md) | 0.69 | 5.3% | 4.0% | −22.9% | −20.6% | November 2009 |
| [USHY](https://tactfolio.com/etf/USHY.md) | 0.68 | 4.4% | 2.6% | −22.4% | −20.6% | October 2017 |

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## Each VCIT alternative, compared

### LQD: iShares iBoxx $ Investment Grade Corporate Bond ETF

LQD also holds bonds from large US companies with strong credit ratings. It tracks the iBoxx USD Liquid Investment Grade Index, while VCIT tracks the Bloomberg U.S. 5-10 Year Corporate Bond Index.

It charges 0.14% a year, about $14 on $10,000, against $3 for VCIT. It held 3,171 holdings, against 2,342 for VCIT.

From November 2009 to October 2026, LQD returned about 3.6% a year and VCIT returned about 4.0% a year. Over about the last five years they moved almost exactly together (correlation 0.97).

Read the [LQD fund page](https://tactfolio.com/etf/LQD.md) for its returns by year and worst drop.

### AGG: iShares Core U.S. Aggregate Bond ETF

AGG is a looser match. It holds a broad mix of US bonds: government, company and mortgage bonds, while VCIT holds bonds from large US companies with strong credit ratings.

It charges 0.03% a year, about $3 on $10,000, against $3 for VCIT. It held 13,416 holdings, against 2,342 for VCIT.

From November 2009 to October 2026, AGG returned about 2.3% a year and VCIT returned about 4.0% a year. Over about the last five years they moved almost exactly together (correlation 0.96).

Read the [AGG fund page](https://tactfolio.com/etf/AGG.md) for its returns by year and worst drop.

### BND: Vanguard Total Bond Market ETF

BND is a looser match. It holds a broad mix of US bonds: government, company and mortgage bonds, while VCIT holds bonds from large US companies with strong credit ratings.

It charges 0.03% a year, about $3 on $10,000, against $3 for VCIT. It held 11,434 holdings, against 2,342 for VCIT.

From November 2009 to October 2026, BND returned about 2.3% a year and VCIT returned about 4.0% a year. Over about the last five years they moved almost exactly together (correlation 0.96).

Read the [BND fund page](https://tactfolio.com/etf/BND.md) for its returns by year and worst drop.

### SCHZ: Schwab U.S. Aggregate Bond ETF

SCHZ is a looser match. It holds a broad mix of US bonds: government, company and mortgage bonds, while VCIT holds bonds from large US companies with strong credit ratings.

It charges 0.03% a year, about $3 on $10,000, against $3 for VCIT. It held 12,355 holdings, against 2,342 for VCIT.

From July 2011 to October 2026, SCHZ returned about 1.9% a year and VCIT returned about 3.5% a year. Over about the last five years they moved almost exactly together (correlation 0.96).

Read the [SCHZ fund page](https://tactfolio.com/etf/SCHZ.md) for its returns by year and worst drop.

### IUSB: iShares Core Universal USD Bond ETF

IUSB is a looser match. It holds a broad mix of US bonds: government, company and mortgage bonds, while VCIT holds bonds from large US companies with strong credit ratings.

It charges 0.06% a year, about $6 on $10,000, against $3 for VCIT. It held 18,251 holdings, against 2,342 for VCIT.

From June 2014 to October 2026, IUSB returned about 2.0% a year and VCIT returned about 2.9% a year. Over about the last five years they moved almost exactly together (correlation 0.96).

Read the [IUSB fund page](https://tactfolio.com/etf/IUSB.md) for its returns by year and worst drop.

### HYG: iShares iBoxx $ High Yield Corporate Bond ETF

HYG is a looser match. It holds bonds from US companies with weaker credit, which pay more interest and carry more risk, while VCIT holds bonds from large US companies with strong credit ratings.

It charges 0.49% a year, about $49 on $10,000, against $3 for VCIT. It held 1,334 holdings, against 2,342 for VCIT.

From November 2009 to October 2026, HYG returned about 5.3% a year and VCIT returned about 4.0% a year. Over about the last five years they often moved together, but not always (correlation 0.70).

Read the [HYG fund page](https://tactfolio.com/etf/HYG.md) for its returns by year and worst drop.

### JNK: State Street SPDR Bloomberg High Yield Bond ETF

JNK is a looser match. It holds bonds from US companies with weaker credit, which pay more interest and carry more risk, while VCIT holds bonds from large US companies with strong credit ratings.

It charges 0.4% a year, about $40 on $10,000, against $3 for VCIT. It held 1,161 holdings, against 2,342 for VCIT.

From November 2009 to October 2026, JNK returned about 5.3% a year and VCIT returned about 4.0% a year. Over about the last five years they often moved together, but not always (correlation 0.69).

Read the [JNK fund page](https://tactfolio.com/etf/JNK.md) for its returns by year and worst drop.

### USHY: iShares Broad USD High Yield Corporate Bond ETF

USHY is a looser match. It holds bonds from US companies with weaker credit, which pay more interest and carry more risk, while VCIT holds bonds from large US companies with strong credit ratings.

It charges 0.08% a year, about $8 on $10,000, against $3 for VCIT. It held 1,902 holdings, against 2,342 for VCIT.

From October 2017 to October 2026, USHY returned about 4.4% a year and VCIT returned about 2.6% a year. Over about the last five years they often moved together, but not always (correlation 0.68).

Read the [USHY fund page](https://tactfolio.com/etf/USHY.md) for its returns by year and worst drop.

## VCIT versions from other fund companies

Some people keep all their funds with one company. Here is the closest fund to VCIT from each other company on this page:

- **iShares (BlackRock):** [LQD](https://tactfolio.com/etf/LQD.md), iShares iBoxx $ Investment Grade Corporate Bond ETF (same kind of fund, 0.14% a year)
- **Schwab:** [SCHZ](https://tactfolio.com/etf/SCHZ.md), Schwab U.S. Aggregate Bond ETF (related fund, 0.03% a year)
- **SPDR (State Street):** [JNK](https://tactfolio.com/etf/JNK.md), State Street SPDR Bloomberg High Yield Bond ETF (related fund, 0.4% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company's index mutual fund, are not listed here.

## How to choose between VCIT and its alternatives

- **What it tracks.** A fund on the same index holds the same bonds. A different index can mean different weights, more or fewer holdings, or a different mix.
- **The fee.** The difference is often small. On $10,000, VCIT costs about $3 a year.
- **History.** An older fund has been through more bad markets, so you can see how far it fell.
- **What you already own.** Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

## Swapping VCIT to harvest a tax loss

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a "substantially identical" security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as LQD, AGG or BND, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in [Publication 550](https://www.irs.gov/publications/p550).

## Test VCIT and its alternatives in a backtest

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the [builder](https://tactfolio.com/builder), add VCIT and LQD, and see how each would have done on the same dates, or how a mix of both would have done.

## The details

Alternatives are picked from facts, not from returns. First come funds that track the same index as VCIT. Then come funds that hold the same kind of bonds through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like VCIT over about the last five years come first. Returns and worst drops use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with VCIT only on days both traded. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [Portfolio rebalancing](https://tactfolio.com/learn/portfolio-rebalancing): What portfolio rebalancing is, why a 60/40 mix drifts, calendar vs threshold methods, and how taxes and costs fit in.
- [Risk parity](https://tactfolio.com/learn/risk-parity): Risk parity balances risk instead of dollars. See a simple stock and bond example, why funds use leverage, and what went wrong in 2022.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### What ETF is most similar to VCIT?

LQD is the closest. LQD also holds bonds from large US companies with strong credit ratings. It tracks the iBoxx USD Liquid Investment Grade Index, while VCIT tracks the Bloomberg U.S. 5-10 Year Corporate Bond Index. Over about the last five years they moved almost exactly together.

### Is there a cheaper alternative to VCIT?

Not among the funds here. VCIT charges 0.03% a year, about $3 on $10,000, which is as low as or lower than each alternative listed.

### Is VCIT or LQD better?

Neither is better for everyone. From November 2009 to October 2026, VCIT returned about 4.0% a year and LQD returned about 3.6% a year. VCIT charges 0.03% a year and LQD charges 0.14%. Past returns do not tell you what comes next.

### What if I had put $10,000 in VCIT 10 years ago?

It would have grown to about $12,801 by October 16, 2026, with dividends reinvested. That is about 2.5% a year. Past returns do not tell you what comes next.

## Sources

- [Vanguard: Vanguard Intermediate-Term Corporate Bond ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vcit)
- [iShares (BlackRock): iShares iBoxx $ Investment Grade Corporate Bond ETF fund page](https://www.ishares.com/us/products/239566/ishares-iboxx-investment-grade-corporate-bond-etf)
- [iShares (BlackRock): iShares Core U.S. Aggregate Bond ETF fund page](https://www.ishares.com/us/products/239458/ishares-core-u-s-aggregate-bond-etf)
- [Vanguard: Vanguard Total Bond Market ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/bnd)
- [Schwab: Schwab U.S. Aggregate Bond ETF fund page](https://www.sec.gov/Archives/edgar/data/1454889/000088454626000188/c497k.htm)
- [iShares (BlackRock): iShares Core Universal USD Bond ETF fund page](https://www.ishares.com/us/products/264615/ishares-core-universal-usd-bond-etf)
- [iShares (BlackRock): iShares iBoxx $ High Yield Corporate Bond ETF fund page](https://www.ishares.com/us/products/239565/ishares-iboxx-high-yield-corporate-bond-etf)
- [SPDR (State Street): State Street SPDR Bloomberg High Yield Bond ETF fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-spdr-bloomberg-high-yield-bond-etf-jnk)
- [iShares (BlackRock): iShares Broad USD High Yield Corporate Bond ETF fund page](https://www.ishares.com/us/products/291299/ishares-broad-usd-high-yield-corporate-bond-etf)
- [IRS Publication 550: wash sales](https://www.irs.gov/publications/p550)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.