LKOR vs. VCLT
Compare and contrast key facts about FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund (LKOR) and Vanguard Long-Term Corporate Bond ETF (VCLT).
LKOR and VCLT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. LKOR is a passively managed fund by Northern Trust that tracks the performance of the Northern Trust US Long Corporate Bond Quality Value Index. It was launched on Sep 24, 2015. VCLT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 10+ Year Corporate Index. It was launched on Nov 19, 2009. Both LKOR and VCLT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: LKOR or VCLT.
Key characteristics
| LKOR | VCLT | |
|---|---|---|
| YTD Return | 0.35% | -0.51% |
| 1Y Return | 11.35% | 10.26% |
| 3Y Return (Ann) | -5.94% | -6.37% |
| 5Y Return (Ann) | -0.61% | -1.33% |
| Sharpe Ratio | 1.21 | 1.12 |
| Sortino Ratio | 1.77 | 1.65 |
| Omega Ratio | 1.21 | 1.19 |
| Calmar Ratio | 0.49 | 0.45 |
| Martin Ratio | 4.05 | 3.49 |
| Ulcer Index | 3.35% | 3.59% |
| Daily Std Dev | 11.16% | 11.12% |
| Max Drawdown | -34.78% | -34.31% |
| Current Drawdown | -18.81% | -19.76% |
Correlation
The correlation between LKOR and VCLT is 0.85, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
LKOR vs. VCLT - Performance Comparison
In the year-to-date period, LKOR achieves a 0.35% return, which is significantly higher than VCLT's -0.51% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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LKOR vs. VCLT - Expense Ratio Comparison
LKOR has a 0.22% expense ratio, which is higher than VCLT's 0.04% 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%.
Risk-Adjusted Performance
LKOR vs. VCLT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund (LKOR) and Vanguard Long-Term Corporate Bond ETF (VCLT). 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.
Dividends
LKOR vs. VCLT - Dividend Comparison
LKOR's dividend yield for the trailing twelve months is around 5.36%, more than VCLT's 5.02% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LKOR FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund | 5.36% | 4.89% | 4.71% | 4.73% | 6.56% | 3.71% | 4.21% | 3.78% | 5.53% | 1.22% | 0.00% | 0.00% |
VCLT Vanguard Long-Term Corporate Bond ETF | 5.02% | 4.67% | 4.44% | 3.07% | 3.16% | 3.81% | 4.55% | 4.01% | 4.33% | 4.68% | 4.29% | 4.83% |
Drawdowns
LKOR vs. VCLT - Drawdown Comparison
The maximum LKOR drawdown since its inception was -34.78%, roughly equal to the maximum VCLT drawdown of -34.31%. Use the drawdown chart below to compare losses from any high point for LKOR and VCLT. For additional features, visit the drawdowns tool.
Volatility
LKOR vs. VCLT - Volatility Comparison
FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund (LKOR) and Vanguard Long-Term Corporate Bond ETF (VCLT) have volatilities of 3.87% and 4.02%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.