IGOV vs. VCIT

Last updated Jun 3, 2026

IGOV (iShares International Treasury Bond ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both exchange-traded funds - IGOV is a International Government Bonds fund tracking the S&P/Citigroup International Treasury Bond Index Ex-US, while VCIT is a Corporate Bonds fund tracking the Barclays U.S. 5-10 Year Corp Index. Both are passively managed. Over the past 10 years, IGOV returned -1.30%/yr vs 2.95%/yr for VCIT. At a 0.48 correlation, their price movements are largely independent. IGOV charges 0.35%/yr vs 0.04%/yr for VCIT.

Performance

IGOV vs. VCIT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares International Treasury Bond ETF (IGOV) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IGOV achieves a 0.34% return, which is significantly lower than VCIT's 0.40% return. Over the past 10 years, IGOV has underperformed VCIT with an annualized return of -1.30%, while VCIT has yielded a comparatively higher 2.95% annualized return.

IGOV

• 1D: 0.07%
• 1M: -0.05%
• YTD: 0.34%
• 6M: 0.74%
• 1Y: 0.69%
• 3Y*: 2.85%
• 5Y*: -4.22%
• 10Y*: -1.30%

VCIT

• 1D: -0.01%
• 1M: 0.24%
• YTD: 0.40%
• 6M: 0.50%
• 1Y: 6.39%
• 3Y*: 6.08%
• 5Y*: 1.35%
• 10Y*: 2.95%

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

IGOV vs. VCIT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IGOV iShares International Treasury Bond ETF	0.34%	9.96%	-6.50%	5.57%	-22.07%	-9.25%	10.88%	3.76%	-2.60%	11.38%
VCIT Vanguard Intermediate-Term Corporate Bond ETF	0.40%	9.34%	3.20%	8.98%	-13.98%	-1.77%	9.46%	14.10%	-1.74%	5.31%

Correlation

The correlation between IGOV and VCIT is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (10Y) Calculated over the trailing 10-year period	0.62
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009	0.48

Over the past year, IGOV and VCIT have become more correlated (0.70) than their long-term average of 0.48, meaning their price movements have been converging.

Return for Risk

IGOV vs. VCIT — Risk / Return Rank

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

IGOV

IGOV Risk / Return Rank: 10
IGOV Sharpe Ratio Rank: 10
IGOV Sortino Ratio Rank: 9
IGOV Omega Ratio Rank: 9
IGOV Calmar Ratio Rank: 11
IGOV Martin Ratio Rank: 11

VCIT

VCIT Risk / Return Rank: 44
VCIT Sharpe Ratio Rank: 44
VCIT Sortino Ratio Rank: 47
VCIT Omega Ratio Rank: 43
VCIT Calmar Ratio Rank: 42
VCIT Martin Ratio Rank: 43

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.

IGOV vs. VCIT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares International Treasury Bond ETF (IGOV) 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.

	IGOV	VCIT	Difference
Sharpe ratio Return per unit of total volatility	0.09	1.57	-1.48
Sortino ratio Return per unit of downside risk	0.18	2.32	-2.13
Omega ratio Gain probability vs. loss probability	1.02	1.28	-0.26
Calmar ratio Return relative to maximum drawdown	0.26	2.10	-1.83
Martin ratio Return relative to average drawdown	0.63	7.05	-6.42
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IGOV vs. VCIT - Sharpe Ratio Comparison

The current IGOV Sharpe Ratio is 0.09, which is lower than the VCIT Sharpe Ratio of 1.57. The chart below compares the historical Sharpe Ratios of IGOV and VCIT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	IGOV	VCIT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.09	1.57	-1.48
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.43	0.21	-0.63
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.15	0.47	-0.62
Sharpe Ratio (All Time) Calculated using the full available price history	0.02	0.76	-0.73

Drawdowns

IGOV vs. VCIT - Drawdown Comparison

The maximum IGOV drawdown since its inception was -35.88%, which is greater than VCIT's maximum drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for IGOV and VCIT.

Drawdown Indicators

	IGOV	VCIT	Difference
Max Drawdown Largest peak-to-trough decline	-35.88%	-20.56%	-15.32%
Max Drawdown (1Y) Largest decline over 1 year	-5.70%	-2.96%	-2.74%
Max Drawdown (3Y) Largest decline over 3 years	-10.65%	-6.11%	-4.54%
Max Drawdown (5Y) Largest decline over 5 years	-33.17%	-20.56%	-12.61%
Max Drawdown (10Y) Largest decline over 10 years	-35.88%	-20.56%	-15.32%
Current Drawdown Current decline from peak	-23.37%	-1.14%	-22.23%
Average Drawdown Average peak-to-trough decline	-11.01%	-3.16%	-7.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.41%	0.88%	+1.53%

Volatility

IGOV vs. VCIT - Volatility Comparison

iShares International Treasury Bond ETF (IGOV) has a higher volatility of 2.71% compared to Vanguard Intermediate-Term Corporate Bond ETF (VCIT) at 1.39%. This indicates that IGOV's price experiences larger fluctuations and is considered to be riskier than VCIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IGOV	VCIT	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.71%	1.39%	+1.32%
Volatility (6M) Calculated over the trailing 6-month period	6.14%	3.07%	+3.07%
Volatility (1Y) Calculated over the trailing 1-year period	8.11%	4.10%	+4.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.95%	6.61%	+3.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.59%	6.28%	+2.31%

IGOV vs. VCIT - Expense Ratio Comparison

IGOV has a 0.35% expense ratio, which is higher than VCIT's 0.04% expense ratio.

Dividends

IGOV vs. VCIT - Dividend Comparison

IGOV's dividend yield for the trailing twelve months is around 1.40%, less than VCIT's 4.79% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IGOV iShares International Treasury Bond ETF	1.40%	1.41%	0.59%	0.00%	0.11%	0.39%	0.00%	0.24%	0.31%	0.19%	0.69%	0.12%
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

Can I hold both IGOV and VCIT in my portfolio?

IGOV and VCIT have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IGOV or VCIT?

IGOV has higher volatility (2.71%) compared to VCIT (1.39%). In terms of maximum drawdown, IGOV dropped -35.88% vs VCIT's -20.56%.

Which ETF is better, IGOV or VCIT?

On 10-year performance, VCIT leads with 2.95% vs -1.30% for IGOV. On fees, VCIT is cheaper at 0.04% per year. On volatility, VCIT has been the lower-risk option at 1.39%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IGOV or VCIT?

Over the 10-year period, VCIT has performed better with a 2.95% return vs -1.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IGOV or VCIT?

VCIT is cheaper with a 0.04% expense ratio, compared with 0.35% for IGOV.

Which ETF pays a higher dividend yield, IGOV or VCIT?

VCIT has the higher dividend yield at 4.79%, compared with 1.40% for IGOV.

What is the main difference between IGOV and VCIT?

IGOV is categorized as International Government Bonds, while VCIT is Corporate Bonds. IGOV tracks S&P/Citigroup International Treasury Bond Index Ex-US, while VCIT tracks Barclays U.S. 5-10 Year Corp Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.35% for IGOV and 0.04% for VCIT.

Which has better risk-adjusted returns?

VCIT currently has the higher Sharpe Ratio (1.57 vs 0.09), 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.