LQD vs VCIT: Yield, Cost and Returns Compared
As of Nov 5, 2026, LQD yields more: 4.44% (dividend yield) against 4.15% for VCIT. VCIT is cheaper to own at 0.03% a year vs 0.14%. Over the same 16 years (Nov 2009 to Oct 2026), VCIT returned 4.0% a year with distributions reinvested, and LQD 3.6%.
LQDiShares iBoxx $ Investment Grade Corporate Bond ETF4.44%dividend yield| Compared | LQD | VCIT |
|---|---|---|
| YieldDividend yield | 4.44% | 4.15% |
| Expense ratio | 0.14% | 0.03% |
| Total return, 1 yr | −1.8% | −0.5% |
| Total return, 3 yr (a year) | +6.4% | +7.1% |
| Total return, 5 yr (a year) | −0.9% | +0.9% |
| Total return, 10 yr (a year) | +2.1% | +2.6% |
| Worst drop since Nov 2009 | -23.3% | -18.8% |
| Share price since Nov 2009 | −3% | +5% |
| Pays | Monthly | Monthly |
| Issuer | iShares | Vanguard |
| Assets | $32.0B | $70.4B |
| Started | 2002 | 2009 |
| Type | Corporate Bond | Corporate Bond |
Higher yield
LQD
4.44%
Lower cost
VCIT
0.03%
Better total return
VCIT
4.0%/yr
Smaller worst drop
VCIT
-18.8%
Key facts: LQD vs VCIT
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, LQD yields 4.44% (dividend yield) and VCIT yields 4.15% (dividend yield).
- LQD's expense ratio is 0.14% and VCIT's is 0.03%: $14 vs $3 a year on $10,000.
- From Nov 2009 to Oct 2026, $10,000 in LQD grew to $18,223 (3.6% a year) and $10,000 in VCIT to $19,518 (4.0% a year), distributions reinvested.
- Their worst month-end drops over that time: -23.3% for LQD and -18.8% for VCIT.
Cite this page
SmarterDividends, "LQD vs VCIT: Yield, Cost and Returns Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/lqd-vs-vcit
$10,000 in each, Nov 2009 to Oct 2026
Distributions reinvested, month-end values, with the S&P 500 for reference.
LQD became
$18,223
3.6% a year
VCIT became
$19,518
4.0% a year
Year by year
| Year | LQD | VCIT |
|---|---|---|
| 2025 | +7.9% | +9.3% |
| 2024 | +0.9% | +3.2% |
| 2023 | +9.4% | +9.0% |
| 2022 | −17.9% | −14.0% |
| 2021 | −1.8% | −1.8% |
| 2020 | +11.0% | +9.5% |
| 2019 | +17.4% | +14.1% |
| 2018 | −3.8% | −1.7% |
| 2017 | +7.1% | +5.3% |
| 2016 | +6.2% | +5.3% |
| 2015 | −1.2% | +0.9% |
| 2014 | +8.2% | +7.7% |
| 2013 | −2.0% | −1.9% |
| 2012 | +10.6% | +10.5% |
| 2011 | +9.7% | +9.0% |
| 2010 | +9.3% | +10.0% |
Total return each calendar year, distributions reinvested.
Top holdings
No overlap in the top ten.
LQD
- XTSLA BlackRock Cash Funds Treasury SL Agency0.5%
VCIT
- Holdings not reported.
LQD vs VCIT: questions
Is LQD or VCIT better?
It depends on the job. LQD pays more today (4.44% vs 4.15%), VCIT costs less, and VCIT has the better total return over Nov 2009 to Oct 2026, with VCIT holding up better in its worst stretch. For income, look at yield and whether the payouts hold up; for growth, total return and drawdowns.
Which pays a higher dividend, LQD or VCIT?
LQD, at 4.44% against 4.15% for VCIT as of Nov 5, 2026. On $10,000 that's about $444 vs $415 a year at today's rates.
Which has the better total return?
VCIT. From Nov 2009 to Oct 2026, it returned 4.0% a year with distributions reinvested, against 3.6% for LQD. $10,000 became $19,518 vs $18,223.
Which is cheaper, LQD or VCIT?
VCIT, with a 0.03% expense ratio against 0.14%.
Yields, costs and holdings as each fund reports them (via Yahoo Finance), updated daily; returns from month-end prices with distributions reinvested. VCIT leads on 7 of 8 measures above. For information only, not investment advice. Last fund data: Nov 5, 2026.