FLCO vs. VCIT
FLCO (Franklin Liberty Investment Grade Corporate ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both Corporate Bonds funds. FLCO is actively managed, while VCIT is passively managed. Over the past 5 years, FLCO returned 0.21%/yr vs 1.24%/yr for VCIT. Their correlation of 0.85 suggests significant overlap in exposure. FLCO charges 0.35%/yr vs 0.03%/yr for VCIT.
Performance
FLCO vs. VCIT - Performance Comparison
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Returns By Period
In the year-to-date period, FLCO achieves a 0.59% return, which is significantly higher than VCIT's 0.31% return.
FLCO
- 1D
- 0.19%
- 1M
- 0.47%
- YTD
- 0.59%
- 6M
- 0.59%
- 1Y
- 5.18%
- 3Y*
- 5.11%
- 5Y*
- 0.21%
- 10Y*
- —
VCIT
- 1D
- 0.13%
- 1M
- 0.24%
- YTD
- 0.31%
- 6M
- 0.39%
- 1Y
- 5.69%
- 3Y*
- 6.09%
- 5Y*
- 1.24%
- 10Y*
- 2.97%
FLCO vs. VCIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FLCO Franklin Liberty Investment Grade Corporate ETF | 0.59% | 7.53% | 1.93% | 7.94% | -16.08% | -2.06% | 10.01% | 14.82% | -3.06% | 5.98% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 0.31% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
Correlation
The correlation between FLCO and VCIT is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.96 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.96 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.96 |
Correlation (All Time) Calculated using the full available price history since Oct 6, 2016 | 0.85 |
The correlation between FLCO and VCIT shifts across timeframes, from 0.85 (all time) to 0.96 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
FLCO vs. VCIT — Risk / Return Rank
FLCO
VCIT
FLCO vs. VCIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Franklin Liberty Investment Grade Corporate ETF (FLCO) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT). 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.
| FLCO | VCIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.22 | ||
| Sortino ratioReturn per unit of downside risk | -0.32 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.25 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 1.88 | 1.93 | -0.05 |
| Martin ratioReturn relative to average drawdown | 5.66 | 6.44 | -0.78 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FLCO | VCIT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.19 | 1.40 | -0.22 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.03 | 0.19 | -0.16 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.47 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.32 | 0.76 | -0.44 |
Drawdowns
FLCO vs. VCIT - Drawdown Comparison
The maximum FLCO drawdown since its inception was -22.71%, which is greater than VCIT's maximum drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for FLCO and VCIT.
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Drawdown Indicators
| FLCO | VCIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.71% | -20.56% | -2.15% |
Max Drawdown (1Y)Largest decline over 1 year | -2.76% | -2.96% | +0.20% |
Max Drawdown (3Y)Largest decline over 3 years | -6.59% | -6.11% | -0.48% |
Max Drawdown (5Y)Largest decline over 5 years | -22.48% | -20.56% | -1.92% |
Max Drawdown (10Y)Largest decline over 10 years | — | -20.56% | — |
Current DrawdownCurrent decline from peak | -2.18% | -1.22% | -0.96% |
Average DrawdownAverage peak-to-trough decline | -5.88% | -3.16% | -2.72% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 0.89% | +0.03% |
Volatility
FLCO vs. VCIT - Volatility Comparison
Franklin Liberty Investment Grade Corporate ETF (FLCO) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT) have volatilities of 1.42% and 1.38%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FLCO | VCIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.42% | 1.38% | +0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 3.25% | 3.06% | +0.19% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.43% | 4.10% | +0.33% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.14% | 6.61% | +0.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.83% | 6.28% | +0.55% |
FLCO vs. VCIT - Expense Ratio Comparison
FLCO has a 0.35% expense ratio, which is higher than VCIT's 0.03% expense ratio.
Dividends
FLCO vs. VCIT - Dividend Comparison
FLCO's dividend yield for the trailing twelve months is around 4.65%, less than VCIT's 4.80% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FLCO Franklin Liberty Investment Grade Corporate ETF | 4.65% | 4.60% | 4.63% | 3.83% | 3.85% | 2.85% | 3.99% | 3.39% | 3.86% | 3.33% | 0.51% | 0.00% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.80% | 4.62% | 4.43% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% |
Frequently Asked Questions
With a correlation of 0.96, FLCO and VCIT move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
FLCO has higher volatility (1.42%) compared to VCIT (1.38%). In terms of maximum drawdown, FLCO dropped -22.71% vs VCIT's -20.56%.
On 5-year performance, VCIT leads with 1.24% vs 0.21% for FLCO. On fees, VCIT is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VCIT has performed better with a 1.24% return vs 0.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCIT is cheaper with a 0.03% expense ratio, compared with 0.35% for FLCO.
VCIT has the higher dividend yield at 4.80%, compared with 4.65% for FLCO.
They also come from different issuers: Franklin Templeton and Vanguard. Their fees differ too: 0.35% for FLCO and 0.03% for VCIT.
VCIT currently has the higher Sharpe Ratio (1.40 vs 1.19), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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