IG vs. VTC

Last updated Jun 25, 2026

IG (Principal Investment Grade Corporate Active ETF) and VTC (Vanguard Total Corporate Bond ETF) are both Corporate Bonds funds. IG is actively managed, while VTC is passively managed. Their correlation of 0.95 suggests significant overlap in exposure. IG charges 0.26%/yr vs 0.03%/yr for VTC.

Performance

IG vs. VTC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Investment Grade Corporate Active ETF (IG) and Vanguard Total Corporate Bond ETF (VTC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

IG

• 1D: 0.46%
• 1M: 1.35%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VTC

• 1D: 0.40%
• 1M: 1.19%
• YTD: 1.24%
• 6M: 1.00%
• 1Y: 5.12%
• 3Y*: 5.37%
• 5Y*: 0.47%
• 10Y*: —

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

IG vs. VTC - Yearly Performance Comparison

	2026 (YTD)
IG Principal Investment Grade Corporate Active ETF	0.58%
VTC Vanguard Total Corporate Bond ETF	0.66%

Correlation

The correlation between IG and VTC is 0.95, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Apr 22, 2026	0.95

Return for Risk

IG vs. VTC — Risk / Return Rank

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

IG

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

VTC

VTC Risk / Return Rank: 36
VTC Sharpe Ratio Rank: 36
VTC Sortino Ratio Rank: 36
VTC Omega Ratio Rank: 33
VTC Calmar Ratio Rank: 39
VTC Martin Ratio Rank: 38

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.

IG vs. VTC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Investment Grade Corporate Active ETF (IG) 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.

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.

	IG	VTC	Difference
Sharpe ratio: Return per unit of total volatility	—	1.19	—
Sortino ratio: Return per unit of downside risk	—	1.75	—
Omega ratio: Gain probability vs. loss probability	—	1.21	—
Calmar ratio: Return relative to maximum drawdown	—	1.79	—
Martin ratio: Return relative to average drawdown	—	5.53	—

Drawdowns

IG vs. VTC - Drawdown Comparison

The maximum IG drawdown since its inception was -1.75%, smaller than the maximum VTC drawdown of -22.05%. Use the drawdown chart below to compare losses from any high point for IG and VTC.

Drawdown Indicators

	IG	VTC	Difference
Max Drawdown Largest peak-to-trough decline	-1.75%	-22.05%	+20.30%
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	0.00%	-0.35%	+0.35%
Average Drawdown Average peak-to-trough decline	-0.44%	-5.81%	+5.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.93%	—

Volatility

Volatility by Period

	IG	VTC	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.25%	—
Volatility (6M) Calculated over the trailing 6-month period	—	3.33%	—
Volatility (1Y) Calculated over the trailing 1-year period	4.88%	4.35%	+0.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.88%	7.08%	-2.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.88%	7.67%	-2.79%

IG vs. VTC - Expense Ratio Comparison

IG has a 0.26% expense ratio, which is higher than VTC'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

IG vs. VTC - Dividend Comparison

IG's dividend yield for the trailing twelve months is around 0.84%, less than VTC's 4.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
IG Principal Investment Grade Corporate Active ETF	0.84%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VTC Vanguard Total Corporate Bond ETF	4.90%	4.76%	4.50%	3.80%	3.13%	2.36%	2.69%	3.34%	3.53%	0.55%

Frequently Asked Questions

Can I hold both IG and VTC in my portfolio?

With a correlation of 0.95, IG and VTC 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.

Which ETF is better, IG or VTC?

On fees, VTC is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, IG or VTC?

VTC is cheaper with a 0.03% expense ratio, compared with 0.26% for IG.

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

VTC has the higher dividend yield at 4.90%, compared with 0.84% for IG.

What is the main difference between IG and VTC?

They also come from different issuers: Principal and Vanguard. Their fees differ too: 0.26% for IG and 0.03% for VTC.