IGOV vs. VCIT
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 FTSE World Government Bond Index - Developed Markets Capped Select 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, IGOV returned -1.47%/yr vs 2.86%/yr for VCIT. At a 0.48 correlation, their price movements are largely independent. IGOV charges 0.35%/yr vs 0.03%/yr for VCIT.
Performance
IGOV vs. VCIT - Performance Comparison
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Returns By Period
In the year-to-date period, IGOV achieves a -1.54% return, which is significantly lower than VCIT's 0.22% return. Over the past 10 years, IGOV has underperformed VCIT with an annualized return of -1.47%, while VCIT has yielded a comparatively higher 2.86% annualized return.
IGOV
- 1D
- -0.44%
- 1M
- -0.99%
- YTD
- -1.54%
- 6M
- -1.25%
- 1Y
- -1.38%
- 3Y*
- 1.82%
- 5Y*
- -4.29%
- 10Y*
- -1.47%
VCIT
- 1D
- -0.23%
- 1M
- 0.50%
- YTD
- 0.22%
- 6M
- 0.37%
- 1Y
- 5.37%
- 3Y*
- 6.06%
- 5Y*
- 1.14%
- 10Y*
- 2.86%
IGOV vs. VCIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IGOV iShares International Treasury Bond ETF | -1.54% | 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 | 0.22% | 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 0.71, 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 | 0.71 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.70 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.72 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.48 |
Over the past year, IGOV and VCIT have become more correlated (0.71) than their long-term average of 0.48, meaning their price movements have been converging.
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Return for Risk
IGOV vs. VCIT — Risk / Return Rank
IGOV
VCIT
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.
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.
| IGOV | VCIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.48 | ||
| Sortino ratioReturn per unit of downside risk | -2.14 | ||
| Omega ratioGain probability vs. loss probability | 0.98 | 1.23 | -0.25 |
| Calmar ratioReturn relative to maximum drawdown | -0.24 | 1.82 | -2.06 |
| Martin ratioReturn relative to average drawdown | -0.54 | 5.78 | -6.32 |
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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.
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Drawdown Indicators
| IGOV | VCIT | Difference | |
|---|---|---|---|
Max DrawdownLargest 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 | -32.92% | -20.56% | -12.36% |
Max Drawdown (10Y)Largest decline over 10 years | -35.88% | -20.56% | -15.32% |
Current DrawdownCurrent decline from peak | -24.80% | -1.32% | -23.48% |
Average DrawdownAverage peak-to-trough decline | -11.05% | -3.15% | -7.90% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.56% | 0.93% | +1.63% |
Volatility
IGOV vs. VCIT - Volatility Comparison
iShares International Treasury Bond ETF (IGOV) has a higher volatility of 2.28% compared to Vanguard Intermediate-Term Corporate Bond ETF (VCIT) at 1.23%. 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.
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Volatility by Period
| IGOV | VCIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.28% | 1.23% | +1.05% |
Volatility (6M)Calculated over the trailing 6-month period | 6.36% | 3.18% | +3.18% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.15% | 4.11% | +4.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 9.97% | 6.62% | +3.35% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.61% | 6.29% | +2.32% |
IGOV vs. VCIT - Expense Ratio Comparison
IGOV has a 0.35% expense ratio, which is higher than VCIT's 0.03% expense ratio.
Dividends
IGOV vs. VCIT - Dividend Comparison
IGOV's dividend yield for the trailing twelve months is around 1.43%, less than VCIT's 4.80% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IGOV iShares International Treasury Bond ETF | 1.43% | 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 | 4.80% | 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
IGOV and VCIT have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IGOV has higher volatility (2.28%) compared to VCIT (1.23%). In terms of maximum drawdown, IGOV dropped -35.88% vs VCIT's -20.56%.
On 10-year performance, VCIT leads with 2.86% vs -1.47% for IGOV. On fees, VCIT is cheaper at 0.03% per year. On volatility, VCIT has been the lower-risk option at 1.23%. 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 2.86% return vs -1.47%. 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 0.35% for IGOV.
VCIT has the higher dividend yield at 4.80%, compared with 1.43% for IGOV.
IGOV is categorized as International Government Bonds, while VCIT is Corporate Bonds. IGOV tracks FTSE World Government Bond Index - Developed Markets Capped Select 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: 0.35% for IGOV and 0.03% for VCIT.
VCIT currently has the higher Sharpe Ratio (1.31 vs -0.17), 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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