LKOR vs. VTC

Last updated Jun 4, 2026

LKOR (FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund) and VTC (Vanguard Total Corporate Bond ETF) are both Corporate Bonds funds - LKOR tracks the Northern Trust US Long Corporate Bond Quality Value Index while VTC tracks the Bloomberg Barclays U.S. Corporate Bond Index. Both are passively managed. Over the past 5 years, LKOR returned -1.59%/yr vs 0.51%/yr for VTC. Their correlation of 0.91 suggests significant overlap in exposure. LKOR charges 0.22%/yr vs 0.04%/yr for VTC.

Performance

LKOR vs. VTC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund (LKOR) and Vanguard Total Corporate Bond ETF (VTC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LKOR achieves a 0.74% return, which is significantly higher than VTC's 0.60% return.

LKOR

• 1D: -0.36%
• 1M: 1.51%
• YTD: 0.74%
• 6M: -0.19%
• 1Y: 7.57%
• 3Y*: 4.72%
• 5Y*: -1.59%
• 10Y*: 2.45%

VTC

• 1D: -0.22%
• 1M: 0.63%
• YTD: 0.60%
• 6M: 0.33%
• 1Y: 5.99%
• 3Y*: 5.22%
• 5Y*: 0.51%
• 10Y*: —

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

LKOR vs. VTC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LKOR FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund	0.74%	7.04%	-1.02%	11.64%	-25.55%	-1.51%	16.00%	23.97%	-7.61%	2.13%
VTC Vanguard Total Corporate Bond ETF	0.60%	7.58%	2.15%	8.58%	-15.68%	-1.41%	9.30%	14.60%	-2.55%	0.84%

Correlation

The correlation between LKOR and VTC is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Nov 10, 2017	0.91

The correlation between LKOR and VTC has been stable across timeframes, ranging from 0.91 to 0.97 - a consistent structural relationship.

Return for Risk

LKOR vs. VTC — Risk / Return Rank

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

LKOR

LKOR Risk / Return Rank: 26
LKOR Sharpe Ratio Rank: 26
LKOR Sortino Ratio Rank: 25
LKOR Omega Ratio Rank: 24
LKOR Calmar Ratio Rank: 29
LKOR Martin Ratio Rank: 25

VTC

VTC Risk / Return Rank: 39
VTC Sharpe Ratio Rank: 38
VTC Sortino Ratio Rank: 38
VTC Omega Ratio Rank: 35
VTC Calmar Ratio Rank: 41
VTC Martin Ratio Rank: 41

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.

LKOR vs. VTC - Risk-Adjusted Trends 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 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.

	LKOR	VTC	Difference
Sharpe ratio Return per unit of total volatility	0.95	1.38	-0.43
Sortino ratio Return per unit of downside risk	1.40	2.02	-0.63
Omega ratio Gain probability vs. loss probability	1.17	1.24	-0.07
Calmar ratio Return relative to maximum drawdown	1.41	2.09	-0.68
Martin ratio Return relative to average drawdown	3.43	6.63	-3.20
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LKOR vs. VTC - Sharpe Ratio Comparison

The current LKOR Sharpe Ratio is 0.95, which is lower than the VTC Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of LKOR and VTC, 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

	LKOR	VTC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.95	1.38	-0.43
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.12	0.07	-0.20
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.19	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	0.32	-0.07

Drawdowns

LKOR vs. VTC - Drawdown Comparison

The maximum LKOR drawdown since its inception was -34.78%, which is greater than VTC's maximum drawdown of -22.05%. Use the drawdown chart below to compare losses from any high point for LKOR and VTC.

Drawdown Indicators

	LKOR	VTC	Difference
Max Drawdown Largest peak-to-trough decline	-34.78%	-22.05%	-12.73%
Max Drawdown (1Y) Largest decline over 1 year	-5.39%	-2.88%	-2.51%
Max Drawdown (3Y) Largest decline over 3 years	-12.74%	-6.46%	-6.28%
Max Drawdown (5Y) Largest decline over 5 years	-34.78%	-22.05%	-12.73%
Max Drawdown (10Y) Largest decline over 10 years	-34.78%	—	—
Current Drawdown Current decline from peak	-13.63%	-0.99%	-12.64%
Average Drawdown Average peak-to-trough decline	-10.36%	-5.84%	-4.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.21%	0.90%	+1.31%

Volatility

LKOR vs. VTC - Volatility Comparison

FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund (LKOR) has a higher volatility of 2.41% compared to Vanguard Total Corporate Bond ETF (VTC) at 1.43%. This indicates that LKOR's price experiences larger fluctuations and is considered to be riskier than VTC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LKOR	VTC	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.41%	1.43%	+0.98%
Volatility (6M) Calculated over the trailing 6-month period	5.76%	3.22%	+2.54%
Volatility (1Y) Calculated over the trailing 1-year period	8.00%	4.37%	+3.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.90%	7.08%	+5.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.22%	7.68%	+5.54%

LKOR vs. VTC - Expense Ratio Comparison

LKOR has a 0.22% expense ratio, which is higher than VTC'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%.

Dividends

LKOR vs. VTC - Dividend Comparison

LKOR's dividend yield for the trailing twelve months is around 5.72%, more than VTC's 4.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LKOR FlexShares Credit-Scored U.S. Long Corporate Bond Index Fund	5.72%	5.57%	5.52%	4.90%	4.71%	4.73%	6.56%	3.71%	4.21%	3.77%	5.53%	1.22%
VTC Vanguard Total Corporate Bond ETF	4.93%	4.76%	4.50%	3.80%	3.13%	2.36%	2.69%	3.34%	3.53%	0.55%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LKOR and VTC in my portfolio?

With a correlation of 0.96, LKOR 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 is riskier, LKOR or VTC?

LKOR has higher volatility (2.41%) compared to VTC (1.43%). In terms of maximum drawdown, LKOR dropped -34.78% vs VTC's -22.05%.

Which ETF is better, LKOR or VTC?

On 5-year performance, VTC leads with 0.51% vs -1.59% for LKOR. On fees, VTC is cheaper at 0.04% per year. On volatility, VTC has been the lower-risk option at 1.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LKOR or VTC?

Over the 5-year period, VTC has performed better with a 0.51% return vs -1.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LKOR or VTC?

VTC is cheaper with a 0.04% expense ratio, compared with 0.22% for LKOR.

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

LKOR has the higher dividend yield at 5.72%, compared with 4.93% for VTC.

What is the main difference between LKOR and VTC?

LKOR tracks Northern Trust US Long Corporate Bond Quality Value Index, while VTC tracks Bloomberg Barclays U.S. Corporate Bond Index. They also come from different issuers: Northern Trust and Vanguard. Their fees differ too: 0.22% for LKOR and 0.04% for VTC.

Which has better risk-adjusted returns?

VTC currently has the higher Sharpe Ratio (1.38 vs 0.95), 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.