LQD vs VCIT
iShares iBoxx $ Investment Grade Corporate Bond ETF vs Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares
Last updated: 2026-04-10
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is an exchange-traded fund issued by iShares that provides exposure to investment-grade U.S. corporate bonds. It charges a low expense ratio of 0.14%. The fund offers a high dividend yield of 4.53%. Launched in 2002, the fund has a 24-year track record.
Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares (VCIT) is an exchange-traded fund issued by Vanguard that provides exposure to investment-grade U.S. corporate bonds. It charges a very low expense ratio of 0.03%. The fund offers a high dividend yield of 4.73%. Launched in 2009, the fund has a 17-year track record.
Quick Verdict
VCIT is significantly cheaper at 0.03% vs 0.14% expense ratio, saving you approximately $218 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (3.9% vs 4.0%), tracking closely.
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Which One Should You Choose?
Choose VCIT if...
you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.
Either works if...
you just need broad us investment grade corporate exposure. Both are solid options — pick whichever your brokerage offers commission-free.