IEI vs. VCIT
IEI (iShares 3-7 Year Treasury Bond ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both exchange-traded funds - IEI is a Government Bonds fund tracking the ICE U.S. Treasury 3-7 Year Bond Index, while VCIT is a Corporate Bonds fund tracking the Bloomberg U.S. 5-10 Year Corporate Bond Index. Both are passively managed. Over the past 10 years, IEI returned 1.24%/yr vs 2.93%/yr for VCIT. Their correlation of 0.82 suggests significant overlap in exposure. IEI charges 0.15%/yr vs 0.03%/yr for VCIT.
Performance
IEI vs. VCIT - Performance Comparison
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Returns By Period
In the year-to-date period, IEI achieves a -0.30% return, which is significantly lower than VCIT's 0.41% return. Over the past 10 years, IEI has underperformed VCIT with an annualized return of 1.24%, while VCIT has yielded a comparatively higher 2.93% annualized return.
IEI
- 1D
- -0.12%
- 1M
- 0.54%
- YTD
- -0.30%
- 6M
- -0.00%
- 1Y
- 3.16%
- 3Y*
- 3.77%
- 5Y*
- 0.21%
- 10Y*
- 1.24%
VCIT
- 1D
- -0.07%
- 1M
- 0.96%
- YTD
- 0.41%
- 6M
- 0.89%
- 1Y
- 6.00%
- 3Y*
- 6.37%
- 5Y*
- 1.11%
- 10Y*
- 2.93%
IEI vs. VCIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | -0.30% | 6.96% | 1.81% | 4.42% | -9.51% | -2.54% | 6.95% | 5.71% | 1.36% | 1.22% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 0.41% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
Correlation
The correlation between IEI and VCIT is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.89 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.91 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.90 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.84 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.82 |
The correlation between IEI and VCIT has been stable across timeframes, ranging from 0.82 to 0.91 - a consistent structural relationship.
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Return for Risk
IEI vs. VCIT — Risk / Return Rank
IEI
VCIT
IEI vs. VCIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 3-7 Year Treasury Bond ETF (IEI) 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.
| IEI | VCIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.36 | ||
| Sortino ratioReturn per unit of downside risk | -0.50 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.24 | -0.07 |
| Calmar ratioReturn relative to maximum drawdown | 1.19 | 1.88 | -0.69 |
| Martin ratioReturn relative to average drawdown | 3.35 | 6.07 | -2.72 |
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Drawdowns
IEI vs. VCIT - Drawdown Comparison
The maximum IEI drawdown since its inception was -14.60%, smaller than the maximum VCIT drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for IEI and VCIT.
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Drawdown Indicators
| IEI | VCIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.60% | -20.56% | +5.96% |
Max Drawdown (1Y)Largest decline over 1 year | -2.50% | -2.96% | +0.46% |
Max Drawdown (3Y)Largest decline over 3 years | -3.66% | -6.11% | +2.45% |
Max Drawdown (5Y)Largest decline over 5 years | -13.88% | -20.56% | +6.68% |
Max Drawdown (10Y)Largest decline over 10 years | -14.60% | -20.56% | +5.96% |
Current DrawdownCurrent decline from peak | -1.74% | -1.13% | -0.61% |
Average DrawdownAverage peak-to-trough decline | -2.67% | -3.16% | +0.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.89% | 0.92% | -0.03% |
Volatility
IEI vs. VCIT - Volatility Comparison
The current volatility for iShares 3-7 Year Treasury Bond ETF (IEI) is 0.98%, while Vanguard Intermediate-Term Corporate Bond ETF (VCIT) has a volatility of 1.48%. This indicates that IEI 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
| IEI | VCIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.98% | 1.48% | -0.50% |
Volatility (6M)Calculated over the trailing 6-month period | 2.18% | 3.15% | -0.97% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.00% | 4.10% | -1.10% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.78% | 6.62% | -1.84% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.93% | 6.28% | -2.35% |
IEI vs. VCIT - Expense Ratio Comparison
IEI has a 0.15% 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
IEI vs. VCIT - Dividend Comparison
IEI's dividend yield for the trailing twelve months is around 3.64%, less than VCIT's 4.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | 3.64% | 3.48% | 3.18% | 2.36% | 1.37% | 0.73% | 1.12% | 2.01% | 1.95% | 1.51% | 1.33% | 1.39% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.79% | 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
IEI and VCIT have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCIT has higher volatility (1.48%) compared to IEI (0.98%). In terms of maximum drawdown, IEI dropped -14.60% vs VCIT's -20.56%.
On 10-year performance, VCIT leads with 2.93% vs 1.24% for IEI. On fees, VCIT is cheaper at 0.03% per year. On volatility, IEI has been the lower-risk option at 0.98%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VCIT has performed better with a 2.93% return vs 1.24%. 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 0.15% for IEI.
VCIT has the higher dividend yield at 4.79%, compared with 3.64% for IEI.
IEI is categorized as Government Bonds, while VCIT is Corporate Bonds. IEI tracks ICE U.S. Treasury 3-7 Year Bond 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: 0.15% for IEI and 0.03% for VCIT.
VCIT currently has the higher Sharpe Ratio (1.36 vs 1.00), 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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