IBDQ vs. VTC

Last updated Jun 4, 2026

IBDQ (iShares iBonds Dec 2025 Term Corporate ETF) and VTC (Vanguard Total Corporate Bond ETF) are both Corporate Bonds funds - IBDQ tracks the Bloomberg December 2025 Maturity Corporate while VTC tracks the Bloomberg Barclays U.S. Corporate Bond Index. Both are passively managed. A 0.58 correlation means they provide meaningful diversification when combined. IBDQ charges 0.10%/yr vs 0.04%/yr for VTC.

Performance

IBDQ vs. VTC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds Dec 2025 Term Corporate ETF (IBDQ) and Vanguard Total Corporate Bond ETF (VTC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

IBDQ

• 1D: —
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VTC

• 1D: -0.22%
• 1M: 0.63%
• YTD: 0.60%
• 6M: 0.33%
• 1Y: 5.99%
• 3Y*: 5.22%
• 5Y*: 0.51%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

IBDQ vs. VTC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IBDQ iShares iBonds Dec 2025 Term Corporate ETF	0.00%	4.13%	5.12%	5.23%	-5.91%	-1.49%	8.27%	13.59%	-2.39%	0.36%
VTC Vanguard Total Corporate Bond ETF	0.60%	7.58%	2.15%	8.58%	-15.68%	-1.41%	9.30%	14.60%	-2.55%	0.84%

Correlation

The correlation between IBDQ and VTC is 0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.03
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (All Time) Calculated using the full available price history since Nov 10, 2017	0.58

Over the past year, the correlation between IBDQ and VTC has dropped to 0.03 - well below their long-term average of 0.58, suggesting their price drivers have been diverging.

Return for Risk

IBDQ vs. VTC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VTC

VTC Risk / Return Rank: 39
VTC Sharpe Ratio Rank: 38
VTC Sortino Ratio Rank: 38
VTC Omega Ratio Rank: 35
VTC Calmar Ratio Rank: 41
VTC Martin Ratio Rank: 41

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IBDQ vs. VTC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2025 Term Corporate ETF (IBDQ) and Vanguard Total Corporate Bond ETF (VTC). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	IBDQ	VTC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.38	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.07	—
Sharpe Ratio (All Time) Calculated using the full available price history	—	0.32	—

Drawdowns

Drawdown Indicators

	IBDQ	VTC	Difference
Max Drawdown Largest peak-to-trough decline	—	-22.05%	—
Max Drawdown (1Y) Largest decline over 1 year	—	-2.88%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-6.46%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-22.05%	—
Current Drawdown Current decline from peak	—	-0.99%	—
Average Drawdown Average peak-to-trough decline	—	-5.84%	—
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.90%	—

Volatility

Volatility by Period

	IBDQ	VTC	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.43%	—
Volatility (6M) Calculated over the trailing 6-month period	—	3.22%	—
Volatility (1Y) Calculated over the trailing 1-year period	—	4.37%	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	—	7.08%	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	—	7.68%	—

IBDQ vs. VTC - Expense Ratio Comparison

IBDQ has a 0.10% expense ratio, which is higher than VTC's 0.04% 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

IBDQ vs. VTC - Dividend Comparison

IBDQ's dividend yield for the trailing twelve months is around 2.08%, less than VTC's 4.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IBDQ iShares iBonds Dec 2025 Term Corporate ETF	2.08%	3.77%	3.81%	3.27%	2.23%	2.07%	2.51%	3.21%	3.52%	3.28%	3.39%	2.64%
VTC Vanguard Total Corporate Bond ETF	4.93%	4.76%	4.50%	3.80%	3.13%	2.36%	2.69%	3.34%	3.53%	0.55%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IBDQ and VTC in my portfolio?

IBDQ and VTC have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, IBDQ or VTC?

On fees, VTC is cheaper at 0.04% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, IBDQ or VTC?

VTC is cheaper with a 0.04% expense ratio, compared with 0.10% for IBDQ.

Which ETF pays a higher dividend yield, IBDQ or VTC?

VTC has the higher dividend yield at 4.93%, compared with 2.08% for IBDQ.

What is the main difference between IBDQ and VTC?

IBDQ tracks Bloomberg December 2025 Maturity Corporate, while VTC tracks Bloomberg Barclays U.S. Corporate Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.10% for IBDQ and 0.04% for VTC.