BAB vs. VCLT
Compare and contrast key facts about Invesco Taxable Municipal Bond ETF (BAB) and Vanguard Long-Term Corporate Bond ETF (VCLT).
BAB and VCLT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. BAB is a passively managed fund by Invesco that tracks the performance of the BofA Merrill Lynch Build America Bond Index. It was launched on Nov 17, 2009. VCLT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 10+ Year Corporate Index. It was launched on Nov 19, 2009. Both BAB and VCLT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: BAB or VCLT.
Key characteristics
| BAB | VCLT | |
|---|---|---|
| YTD Return | 2.61% | 0.40% |
| 1Y Return | 10.12% | 14.18% |
| 3Y Return (Ann) | -3.78% | -6.68% |
| 5Y Return (Ann) | -0.20% | -1.14% |
| 10Y Return (Ann) | 2.65% | 2.55% |
| Sharpe Ratio | 1.37 | 1.34 |
| Sortino Ratio | 2.03 | 1.95 |
| Omega Ratio | 1.25 | 1.23 |
| Calmar Ratio | 0.54 | 0.50 |
| Martin Ratio | 5.15 | 4.21 |
| Ulcer Index | 2.15% | 3.49% |
| Daily Std Dev | 8.07% | 11.00% |
| Max Drawdown | -27.80% | -34.31% |
| Current Drawdown | -11.62% | -19.02% |
Correlation
The correlation between BAB and VCLT is 0.74, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
BAB vs. VCLT - Performance Comparison
In the year-to-date period, BAB achieves a 2.61% return, which is significantly higher than VCLT's 0.40% return. Both investments have delivered pretty close results over the past 10 years, with BAB having a 2.65% annualized return and VCLT not far behind at 2.55%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
BAB vs. VCLT - Expense Ratio Comparison
BAB has a 0.28% expense ratio, which is higher than VCLT's 0.04% expense ratio.
Risk-Adjusted Performance
BAB vs. VCLT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Taxable Municipal Bond ETF (BAB) and Vanguard Long-Term Corporate Bond ETF (VCLT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
BAB vs. VCLT - Dividend Comparison
BAB's dividend yield for the trailing twelve months is around 3.85%, less than VCLT's 4.97% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | 3.85% | 3.65% | 3.40% | 2.63% | 2.96% | 3.77% | 4.20% | 3.96% | 4.26% | 4.71% | 4.59% | 5.18% |
VCLT Vanguard Long-Term Corporate Bond ETF | 4.97% | 4.67% | 4.44% | 3.07% | 3.16% | 3.81% | 4.55% | 4.01% | 4.33% | 4.68% | 4.29% | 4.83% |
Drawdowns
BAB vs. VCLT - Drawdown Comparison
The maximum BAB drawdown since its inception was -27.80%, smaller than the maximum VCLT drawdown of -34.31%. Use the drawdown chart below to compare losses from any high point for BAB and VCLT. For additional features, visit the drawdowns tool.
Volatility
BAB vs. VCLT - Volatility Comparison
The current volatility for Invesco Taxable Municipal Bond ETF (BAB) is 1.66%, while Vanguard Long-Term Corporate Bond ETF (VCLT) has a volatility of 2.89%. This indicates that BAB experiences smaller price fluctuations and is considered to be less risky than VCLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.