Vanguard’s VCIT offers a 4.75% yield versus BND’s 3.94%, reflecting its corporate bond focus and greater volatility.
Vanguard’s Intermediate-Term Corporate Bond ETF (VCIT) yields 4.75%, surpassing the Total Bond Market ETF (BND) at 3.94%. Both funds charge a 0.03% expense ratio, among the lowest in their category.
VCIT’s corporate bond tilt has driven stronger one- and five-year returns but also deeper drawdowns during market stress. BND, with broader government and corporate exposure, provides more stability but lower yields.
The trade-off reflects fixed-income dynamics: corporate bonds offer higher income at the cost of increased credit risk and volatility.