Which is the Better Vanguard Bond ETF?

Core Insights - Vanguard Intermediate-Term Corporate Bond ETF (VCIT) offers higher yield and recent returns compared to Vanguard Total Bond Market ETF (BND), which is larger and has a lower volatility profile [1][4]. Cost & Size Comparison - Both VCIT and BND have an expense ratio of 0.03% - VCIT has a 1-year return of 3.7% and a dividend yield of 4.6%, while BND has a 1-year return of 2.5% and a dividend yield of 3.9% - Assets Under Management (AUM) for VCIT is $61.8 billion, while BND is significantly larger at $384.8 billion [3][4]. Performance & Risk Comparison - VCIT has a maximum drawdown of (20.56%) over 5 years, compared to BND's (17.93%) - Growth of $1,000 over 5 years is $872 for VCIT and $850 for BND [5]. Portfolio Composition - BND provides exposure to approximately 11,444 bonds, including U.S. Treasuries and agencies, aiming to mirror the entire taxable bond market [6]. - VCIT focuses on 2,249 investment-grade corporate bonds, with significant allocations to companies like Meta Platforms Inc. and Bank of America Corp. [7]. Investment Implications - VCIT is more suitable for income-seeking investors due to its higher yield, while BND offers greater stability with a significant portion of its holdings in U.S. government bonds [9].