FLOT vs. VCIT
FLOT (iShares Floating Rate Bond ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both Corporate Bonds funds - FLOT tracks the Bloomberg US Floating Rate Notes (<5 Y) while VCIT tracks the Bloomberg U.S. 5-10 Year Corporate Bond Index. Both are passively managed. Over the past 10 years, FLOT returned 3.03%/yr vs 2.93%/yr for VCIT. At a 0.09 correlation, their price movements are largely independent. FLOT charges 0.20%/yr vs 0.03%/yr for VCIT.
Performance
FLOT vs. VCIT - Performance Comparison
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Returns By Period
In the year-to-date period, FLOT achieves a 1.89% return, which is significantly higher than VCIT's 0.18% return. Both investments have delivered pretty close results over the past 10 years, with FLOT having a 3.03% annualized return and VCIT not far behind at 2.93%.
FLOT
- 1D
- 0.04%
- 1M
- 0.51%
- YTD
- 1.89%
- 6M
- 2.21%
- 1Y
- 4.91%
- 3Y*
- 5.65%
- 5Y*
- 4.20%
- 10Y*
- 3.03%
VCIT
- 1D
- -0.22%
- 1M
- 0.28%
- YTD
- 0.18%
- 6M
- 0.07%
- 1Y
- 6.13%
- 3Y*
- 6.00%
- 5Y*
- 1.22%
- 10Y*
- 2.93%
FLOT vs. VCIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FLOT iShares Floating Rate Bond ETF | 1.89% | 4.91% | 6.53% | 6.43% | 1.28% | 0.45% | 0.87% | 3.97% | 1.48% | 1.65% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 0.18% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
Correlation
The correlation between FLOT and VCIT is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.22 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.20 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.16 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.12 |
Correlation (All Time) Calculated using the full available price history since Jun 20, 2011 | 0.09 |
The correlation between FLOT and VCIT shifts across timeframes, from 0.09 (all time) to 0.22 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
FLOT vs. VCIT — Risk / Return Rank
FLOT
VCIT
FLOT vs. VCIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Floating Rate Bond ETF (FLOT) 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.
| FLOT | VCIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +5.18 | ||
| Sortino ratioReturn per unit of downside risk | +9.93 | ||
| Omega ratioGain probability vs. loss probability | 3.31 | 1.27 | +2.05 |
| Calmar ratioReturn relative to maximum drawdown | 11.42 | 2.08 | +9.34 |
| Martin ratioReturn relative to average drawdown | 106.82 | 6.95 | +99.87 |
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
| FLOT | VCIT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 6.68 | 1.50 | +5.18 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 2.38 | 0.19 | +2.20 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.73 | 0.47 | +0.27 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.66 | 0.75 | -0.09 |
Drawdowns
FLOT vs. VCIT - Drawdown Comparison
The maximum FLOT drawdown since its inception was -13.54%, smaller than the maximum VCIT drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for FLOT and VCIT.
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Drawdown Indicators
| FLOT | VCIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.54% | -20.56% | +7.02% |
Max Drawdown (1Y)Largest decline over 1 year | -0.43% | -2.96% | +2.53% |
Max Drawdown (3Y)Largest decline over 3 years | -1.57% | -6.11% | +4.54% |
Max Drawdown (5Y)Largest decline over 5 years | -2.36% | -20.56% | +18.20% |
Max Drawdown (10Y)Largest decline over 10 years | -13.54% | -20.56% | +7.02% |
Current DrawdownCurrent decline from peak | 0.00% | -1.36% | +1.36% |
Average DrawdownAverage peak-to-trough decline | -0.21% | -3.16% | +2.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.05% | 0.88% | -0.83% |
Volatility
FLOT vs. VCIT - Volatility Comparison
The current volatility for iShares Floating Rate Bond ETF (FLOT) is 0.18%, while Vanguard Intermediate-Term Corporate Bond ETF (VCIT) has a volatility of 1.38%. This indicates that FLOT experiences smaller price fluctuations and is considered to be less risky than VCIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FLOT | VCIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.18% | 1.38% | -1.20% |
Volatility (6M)Calculated over the trailing 6-month period | 0.62% | 3.06% | -2.44% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.74% | 4.10% | -3.36% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.77% | 6.61% | -4.84% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.15% | 6.28% | -2.13% |
FLOT vs. VCIT - Expense Ratio Comparison
FLOT has a 0.20% expense ratio, which is higher than VCIT's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
FLOT vs. VCIT - Dividend Comparison
FLOT's dividend yield for the trailing twelve months is around 4.53%, less than VCIT's 4.80% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FLOT iShares Floating Rate Bond ETF | 4.53% | 4.84% | 5.82% | 5.66% | 2.06% | 0.43% | 1.25% | 2.78% | 2.41% | 1.46% | 0.97% | 0.53% |
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
FLOT and VCIT have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCIT has higher volatility (1.38%) compared to FLOT (0.18%). In terms of maximum drawdown, FLOT dropped -13.54% vs VCIT's -20.56%.
On 10-year performance, FLOT leads with 3.03% vs 2.93% for VCIT. On fees, VCIT is cheaper at 0.03% per year. On volatility, FLOT has been the lower-risk option at 0.18%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FLOT has performed better with a 3.03% return vs 2.93%. 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 0.20% for FLOT.
VCIT has the higher dividend yield at 4.80%, compared with 4.53% for FLOT.
FLOT tracks Bloomberg US Floating Rate Notes (<5 Y), while VCIT tracks Bloomberg U.S. 5-10 Year Corporate Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.20% for FLOT and 0.03% for VCIT.
FLOT currently has the higher Sharpe Ratio (6.68 vs 1.50), 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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