# VCIT ETF: fees, returns, drawdowns and holdings

> What VCIT holds, its 0.03% yearly fee, returns by year, its worst drop, and which Tactfolio strategies hold it. Updated daily.

Vanguard Intermediate-Term Corporate Bond ETF (VCIT) is an exchange-traded fund (ETF) run by Vanguard. This fund owns thousands of bonds that companies sell in US dollars, all rated investment grade, meaning they are seen as likely to be paid back. It charges 0.03% a year. From November 2009 to October 2026 it returned about 4.0% a year, and its worst drop was −20.6%.

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

## Key points

- Expense ratio: 0.03% a year (about $3 on $10,000).
- Started trading on November 19, 2009.
- Last close: $79.00 on October 16, 2026.
- Return over the last year: −2.0%.
- Worst drop since 2009: −20.6%.
- 1 Tactfolio classic strategy holds it.

## How has VCIT done since 2009?

From November 2009 to October 2026, VCIT returned about 4.0% a year. The S&P 500 returned about 14.1% a year over the same dates. Say you put in $10,000 at the start. It would have been worth about $19,504 at the end, with every dividend reinvested.

| Period | VCIT | S&P 500 (SPY) |
| --- | --- | --- |
| 1 month | −0.3% | 1.5% |
| 3 months | −2.3% | 1.9% |
| 6 months | −2.6% | 9.3% |
| Year to date | −2.2% | 12.8% |
| 1 year | −2.0% | 16.8% |
| 3 years, per year | 6.4% | 22.0% |
| 5 years, per year | 0.7% | 12.8% |
| 10 years, per year | 2.5% | 15.4% |
| Since 2009, per year | 4.0% | 14.1% |

Periods longer than a year show the return per year (CAGR). 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.

## VCIT returns by month and year

VCIT rose in 129 of its 204 months (63%). Its best month was November 2023, at 5.9%. Its worst was March 2020, at −7.3%.

| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Full year |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2026 (part) | 0.2% | 1.3% | −2.0% | 0.5% | 0.4% | 0.2% | −1.3% | 0.2% | −3.0% | 1.3% |  |  | −2.2% |
| 2025 | 0.7% | 1.9% | 0.0% | 0.4% | 0.3% | 1.9% | 0.1% | 1.3% | 1.2% | 0.3% | 1.0% | −0.2% | 9.3% |
| 2024 | −0.1% | −1.4% | 1.3% | −2.3% | 2.0% | 0.7% | 2.6% | 1.7% | 1.6% | −2.5% | 1.4% | −1.6% | 3.2% |
| 2023 | 4.2% | −3.2% | 3.2% | 0.7% | −1.3% | 0.0% | 0.4% | −0.7% | −2.6% | −1.7% | 5.9% | 4.1% | 9.0% |
| 2022 | −2.5% | −1.5% | −3.1% | −5.0% | 1.3% | −2.7% | 3.9% | −3.8% | −4.7% | −0.4% | 4.8% | −0.8% | −14.0% |
| 2021 | −0.9% | −1.6% | −1.5% | 1.0% | 0.6% | 1.1% | 1.3% | −0.4% | −1.0% | −0.4% | −0.3% | 0.3% | −1.8% |
| 2020 | 2.2% | 1.1% | −7.3% | 5.2% | 2.7% | 1.9% | 2.0% | −0.2% | −0.4% | −0.1% | 2.0% | 0.6% | 9.5% |
| 2019 | 2.8% | 0.1% | 2.4% | 0.5% | 1.5% | 2.3% | 0.3% | 2.6% | −0.4% | 0.7% | 0.0% | 0.5% | 14.1% |
| 2018 | −1.2% | −1.5% | 0.3% | −1.1% | 0.6% | −0.2% | 0.8% | 0.6% | −0.5% | −0.9% | −0.2% | 1.6% | −1.7% |
| 2017 | 0.4% | 0.9% | 0.0% | 1.2% | 1.1% | −0.1% | 1.0% | 0.8% | −0.4% | 0.2% | −0.3% | 0.4% | 5.3% |
| 2016 | 0.5% | 1.1% | 2.3% | 1.0% | 0.1% | 2.6% | 1.0% | −0.2% | 0.2% | −0.9% | −3.0% | 0.6% | 5.3% |
| 2015 | 3.0% | −1.0% | 0.4% | 0.0% | −0.8% | −1.3% | 0.2% | −0.9% | 1.7% | 0.3% | −0.3% | −0.7% | 0.6% |
| 2014 | 2.0% | 1.2% | 0.0% | 1.1% | 1.4% | 0.2% | −0.3% | 1.5% | −1.3% | 1.1% | 0.7% | −0.3% | 7.7% |
| 2013 | −0.7% | 0.8% | 0.4% | 1.8% | −3.0% | −3.0% | 1.1% | −1.2% | 1.4% | 1.3% | −0.1% | −0.5% | −1.9% |
| 2012 | 2.6% | 0.7% | −0.7% | 1.5% | 0.4% | 0.7% | 2.4% | 0.6% | 0.8% | 1.3% | 0.1% | −0.2% | 10.5% |
| 2011 | 0.9% | 0.5% | −0.1% | 2.1% | 1.3% | −0.8% | 2.6% | 0.7% | −1.3% | 1.9% | −1.7% | 2.6% | 9.0% |
| 2010 | 1.7% | 0.4% | 0.6% | 1.6% | −0.3% | 2.3% | 2.5% | 1.9% | 1.1% | 0.8% | −1.4% | −1.7% | 10.0% |
| 2009 (part) |  |  |  |  |  |  |  |  |  |  | 1.0% | −0.8% | 0.2% |

Each month runs from the last close of the month before. The first month counts from the first close.

## How risky is VCIT compared with the S&P 500?

Measured from October 2021 to October 2026, on the days both traded.

- **Beta 0.14.** When the S&P 500 moved 1% in a day, VCIT tended to move about 0.14%.
- **Correlation 0.36.** VCIT moved mostly on its own, apart from the S&P 500.
- **Up and down months.** In months the S&P 500 rose, VCIT rose 29% as much on average. In months it fell, VCIT fell 47% as much.

| Measure | VCIT | S&P 500 (SPY) |
| --- | --- | --- |
| Return per year | 0.7% | 12.8% |
| Volatility | 6.7% | 17.1% |
| Worst drop | −19.7% | −24.5% |
| Sharpe ratio | 0.14 | 0.79 |
| Sortino ratio | 0.20 | 1.15 |
| Calmar ratio | 0.04 | 0.52 |

Volatility is how much the price swings in a year. The Sharpe ratio is return per unit of volatility, the Sortino ratio counts only the falls, and the Calmar ratio is the return per year over the worst drop. Higher ratios mean more return for the risk taken.

## Is VCIT above its 200-day average?

VCIT closed 1.9% below its 200-day average on October 16, 2026. A rule that holds VCIT only above that average would be out of it today.

- Its 50-day average is 1.3% below its 200-day average.
- It closed 3.7% below its highest close of the last 52 weeks.

A moving average is the average close over the last so many days. Trend rules such as [the 10-month moving average strategy](https://tactfolio.com/strategies/faber-10-month-moving-average.md) hold a fund only while it is above one. You can [build that rule for VCIT](https://tactfolio.com/builder) and backtest it in a minute.

## What was VCIT's worst drop?

A drawdown is how far a fund falls from its last high point. VCIT's worst fall was −20.6%, from August 3, 2021 to October 20, 2022. It got back to that high on July 29, 2025. On October 16, 2026 it was 3.7% below its highest close.

| Drop | Started | Bottom | Back to the high | Fall took | Recovery took |
| --- | --- | --- | --- | --- | --- |
| −20.6% | Aug 3, 2021 | Oct 20, 2022 | Jul 29, 2025 | 15 months | 2.8 years |
| −16.9% | Mar 4, 2020 | Mar 20, 2020 | Jun 9, 2020 | 16 days | 3 months |
| −7.4% | May 1, 2013 | Jul 5, 2013 | May 1, 2014 | 2 months | 10 months |
| −5.8% | Nov 4, 2010 | Dec 15, 2010 | May 5, 2011 | 41 days | 5 months |
| −4.9% | Feb 27, 2026 | Sep 30, 2026 | Not yet | 7 months | n/a |

Big drops are normal for some funds. They matter because selling during a drop locks in the loss.

## What does VCIT hold?

This fund owns thousands of bonds that companies sell in US dollars, all rated investment grade, meaning they are seen as likely to be paid back. Most of the bonds come due in about 5 to 10 years. Company bonds usually pay more interest than US government bonds but carry more risk that a company will not pay.

It tracks the Bloomberg U.S. 5-10 Year Corporate Bond Index. It had 2,342 holdings as of September 30, 2026, according to Vanguard.

| Fact | VCIT |
| --- | --- |
| Full name | Vanguard Intermediate-Term Corporate Bond ETF |
| Issuer | Vanguard |
| Expense ratio | 0.03% a year |
| Started trading | November 19, 2009 |
| Tracks | Bloomberg U.S. 5-10 Year Corporate Bond Index |
| Type | US bonds, ETF |
| Holdings | 2,342 holdings as of September 30, 2026 |
| Facts checked | October 16, 2026 on the [Vanguard fund page](https://investor.vanguard.com/investment-products/etfs/profile/vcit) |

## What is the VCIT expense ratio?

VCIT charges 0.03% a year. An expense ratio is the yearly fee a fund takes to run itself. On $10,000, a 0.03% fee comes to about $3 a year. Of the 162 ETFs on Tactfolio, 85% charge more.

You never get a bill for it. The fund takes the fee out of its own value a little each day.

## Which Tactfolio strategies hold VCIT?

One classic strategy holds VCIT at least some of the time. Each is a set of written rules you can open, test and copy.

- [Paul Novell's Tactical Bond Strategy](https://tactfolio.com/strategies/novell-tactical-bond-strategy.md), by Paul Novell, 2014

## How does VCIT compare with similar ETFs?

Funds that can stand in for VCIT:

- [LQD](https://tactfolio.com/etf/LQD.md): iShares iBoxx $ Investment Grade Corporate Bond ETF, 0.14% a year
- [AGG](https://tactfolio.com/etf/AGG.md): iShares Core U.S. Aggregate Bond ETF, 0.03% a year
- [BND](https://tactfolio.com/etf/BND.md): Vanguard Total Bond Market ETF, 0.03% a year
- [SCHZ](https://tactfolio.com/etf/SCHZ.md): Schwab U.S. Aggregate Bond ETF, 0.03% a year

See [all 8 VCIT alternatives](https://tactfolio.com/alternatives/VCIT.md), compared on the same dates as VCIT.

## Test VCIT in your own rules

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 see how a rule such as "hold it only above its 200-day average" would have done. Strategies run on daily prices and hold US stocks and ETFs only.

## The details

Prices come from Tactfolio's stored daily prices for VCIT and SPY. Each close is adjusted for splits, and dividends are reinvested on the day the fund pays them out. CAGR is the steady yearly return that turns the starting value into the ending value. Volatility is the yearly standard deviation of daily returns. Beta and correlation compare daily returns with the S&P 500 over the same dates.

Fund facts come from Vanguard. We checked them on October 16, 2026. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) and [how to read drawdown and CAGR](https://tactfolio.com/docs/concepts/reading-a-backtest.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 is the expense ratio of VCIT?

VCIT charges 0.03% a year, according to Vanguard as of October 16, 2026. That is about $3 a year for every $10,000 you hold.

### When did VCIT start trading?

VCIT started trading on November 19, 2009. It is run by Vanguard.

### What does VCIT track?

VCIT tracks the Bloomberg U.S. 5-10 Year Corporate Bond Index. This fund owns thousands of bonds that companies sell in US dollars, all rated investment grade, meaning they are seen as likely to be paid back.

### How much has VCIT returned per year?

From November 2009 to October 2026, VCIT returned about 4.0% a year with dividends reinvested. Its worst drop was −20.6%. Past returns do not tell you what it will do next.

### Is VCIT above its 200-day moving average?

On October 16, 2026, VCIT closed 1.9% below its 200-day moving average. This page updates after each US market close.

### Which strategies use VCIT?

One of Tactfolio's classic strategies hold VCIT, including Paul Novell's Tactical Bond Strategy.

## Sources

- [Vanguard: Vanguard Intermediate-Term Corporate Bond ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vcit)

> 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.