IBDR vs. VCIT
IBDR (iShares iBonds Dec 2026 Term Corporate ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both Corporate Bonds funds - IBDR tracks the Barclays December 2026 Maturity Corporate Index while VCIT tracks the Bloomberg U.S. 5-10 Year Corporate Bond Index. Both are passively managed. Over the past 5 years, IBDR returned 1.58%/yr vs 1.14%/yr for VCIT. A 0.73 correlation means they provide meaningful diversification when combined. IBDR charges 0.10%/yr vs 0.03%/yr for VCIT.
Performance
IBDR vs. VCIT - Performance Comparison
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Returns By Period
In the year-to-date period, IBDR achieves a 1.69% return, which is significantly higher than VCIT's 0.31% return.
IBDR
- 1D
- 0.04%
- 1M
- 0.29%
- YTD
- 1.69%
- 6M
- 1.81%
- 1Y
- 4.30%
- 3Y*
- 5.17%
- 5Y*
- 1.58%
- 10Y*
- —
VCIT
- 1D
- 0.10%
- 1M
- 0.60%
- YTD
- 0.31%
- 6M
- 0.47%
- 1Y
- 5.17%
- 3Y*
- 6.09%
- 5Y*
- 1.14%
- 10Y*
- 2.87%
IBDR vs. VCIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IBDR iShares iBonds Dec 2026 Term Corporate ETF | 1.69% | 4.99% | 4.98% | 5.96% | -8.28% | -1.79% | 8.88% | 14.81% | -2.80% | 5.96% |
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 IBDR and VCIT is 0.12, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.12 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.65 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.75 |
Correlation (All Time) Calculated using the full available price history since Sep 19, 2016 | 0.73 |
Over the past year, the correlation between IBDR and VCIT has dropped to 0.12 - well below their long-term average of 0.73, suggesting their price drivers have been diverging.
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Return for Risk
IBDR vs. VCIT — Risk / Return Rank
IBDR
VCIT
IBDR vs. VCIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2026 Term Corporate ETF (IBDR) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| IBDR | VCIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +5.56 | ||
| Sortino ratioReturn per unit of downside risk | +12.43 | ||
| Omega ratioGain probability vs. loss probability | 3.36 | 1.23 | +2.13 |
| Calmar ratioReturn relative to maximum drawdown | 52.23 | 1.76 | +50.47 |
| Martin ratioReturn relative to average drawdown | 181.59 | 5.56 | +176.03 |
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Drawdowns
IBDR vs. VCIT - Drawdown Comparison
The maximum IBDR drawdown since its inception was -16.06%, smaller than the maximum VCIT drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for IBDR and VCIT.
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Drawdown Indicators
| IBDR | VCIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.06% | -20.56% | +4.50% |
Max Drawdown (1Y)Largest decline over 1 year | -0.08% | -2.96% | +2.88% |
Max Drawdown (3Y)Largest decline over 3 years | -1.08% | -6.11% | +5.03% |
Max Drawdown (5Y)Largest decline over 5 years | -13.13% | -20.56% | +7.43% |
Max Drawdown (10Y)Largest decline over 10 years | — | -20.56% | — |
Current DrawdownCurrent decline from peak | 0.00% | -1.22% | +1.22% |
Average DrawdownAverage peak-to-trough decline | -2.82% | -3.15% | +0.33% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.02% | 0.93% | -0.91% |
Volatility
IBDR vs. VCIT - Volatility Comparison
The current volatility for iShares iBonds Dec 2026 Term Corporate ETF (IBDR) is 0.18%, while Vanguard Intermediate-Term Corporate Bond ETF (VCIT) has a volatility of 1.24%. This indicates that IBDR 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
| IBDR | VCIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.18% | 1.24% | -1.06% |
Volatility (6M)Calculated over the trailing 6-month period | 0.35% | 3.17% | -2.82% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.63% | 4.10% | -3.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.39% | 6.62% | -3.23% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.85% | 6.29% | -1.44% |
IBDR vs. VCIT - Expense Ratio Comparison
IBDR has a 0.10% 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
IBDR vs. VCIT - Dividend Comparison
IBDR's dividend yield for the trailing twelve months is around 4.12%, less than VCIT's 4.80% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBDR iShares iBonds Dec 2026 Term Corporate ETF | 4.12% | 4.20% | 4.13% | 3.41% | 2.44% | 2.11% | 2.61% | 3.25% | 3.56% | 3.22% | 0.86% | 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
IBDR and VCIT have a correlation of 0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCIT has higher volatility (1.24%) compared to IBDR (0.18%). In terms of maximum drawdown, IBDR dropped -16.06% vs VCIT's -20.56%.
On 5-year performance, IBDR leads with 1.58% vs 1.14% for VCIT. On fees, VCIT is cheaper at 0.03% per year. On volatility, IBDR 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 5-year period, IBDR has performed better with a 1.58% return vs 1.14%. 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 0.10% for IBDR.
VCIT has the higher dividend yield at 4.80%, compared with 4.12% for IBDR.
IBDR tracks Barclays December 2026 Maturity Corporate Index, 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: 0.10% for IBDR and 0.03% for VCIT.
IBDR currently has the higher Sharpe Ratio (6.83 vs 1.27), 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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