LQD vs. VDC
LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) and VDC (Vanguard Consumer Staples ETF) are both exchange-traded funds - LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index, while VDC is a Consumer Staples Equities fund tracking the MSCI US Investable Market Consumer Staples 25/50 Index. Both are passively managed. Over the past 10 years, LQD returned 2.41%/yr vs 7.63%/yr for VDC. At a 0.08 correlation, their price movements are largely independent. LQD charges 0.15%/yr vs 0.09%/yr for VDC.
Performance
LQD vs. VDC - Performance Comparison
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Returns By Period
In the year-to-date period, LQD achieves a -0.06% return, which is significantly lower than VDC's 7.19% return. Over the past 10 years, LQD has underperformed VDC with an annualized return of 2.41%, while VDC has yielded a comparatively higher 7.63% annualized return.
LQD
- 1D
- -0.10%
- 1M
- -0.67%
- YTD
- -0.06%
- 6M
- -0.06%
- 1Y
- 5.73%
- 3Y*
- 4.95%
- 5Y*
- -0.28%
- 10Y*
- 2.41%
VDC
- 1D
- -0.25%
- 1M
- -2.19%
- YTD
- 7.19%
- 6M
- 7.44%
- 1Y
- 4.07%
- 3Y*
- 8.08%
- 5Y*
- 6.63%
- 10Y*
- 7.63%
LQD vs. VDC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | -0.06% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
VDC Vanguard Consumer Staples ETF | 7.19% | 2.17% | 13.30% | 2.38% | -1.79% | 17.64% | 10.86% | 26.11% | -7.79% | 11.85% |
Correlation
The correlation between LQD and VDC is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.17 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.25 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.27 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.24 |
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004 | 0.08 |
The correlation between LQD and VDC shifts across timeframes, from 0.08 (all time) to 0.27 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
LQD vs. VDC — Risk / Return Rank
LQD
VDC
LQD vs. VDC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and Vanguard Consumer Staples ETF (VDC). 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.
| LQD | VDC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.75 | ||
| Sortino ratioReturn per unit of downside risk | +1.02 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.06 | +0.12 |
| Calmar ratioReturn relative to maximum drawdown | 1.72 | 0.44 | +1.28 |
| Martin ratioReturn relative to average drawdown | 4.88 | 0.90 | +3.98 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| LQD | VDC | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.08 | 0.33 | +0.75 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.03 | 0.51 | -0.54 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.28 | 0.52 | -0.24 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.54 | 0.67 | -0.13 |
Drawdowns
LQD vs. VDC - Drawdown Comparison
The maximum LQD drawdown since its inception was -24.95%, smaller than the maximum VDC drawdown of -34.24%. Use the drawdown chart below to compare losses from any high point for LQD and VDC.
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Drawdown Indicators
| LQD | VDC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.95% | -34.24% | +9.29% |
Max Drawdown (1Y)Largest decline over 1 year | -3.34% | -9.28% | +5.94% |
Max Drawdown (3Y)Largest decline over 3 years | -8.43% | -11.78% | +3.35% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -16.55% | -8.40% |
Max Drawdown (10Y)Largest decline over 10 years | -24.95% | -25.31% | +0.36% |
Current DrawdownCurrent decline from peak | -4.21% | -7.27% | +3.06% |
Average DrawdownAverage peak-to-trough decline | -3.99% | -3.73% | -0.26% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.18% | 4.53% | -3.35% |
Volatility
LQD vs. VDC - Volatility Comparison
The current volatility for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is 1.62%, while Vanguard Consumer Staples ETF (VDC) has a volatility of 4.47%. This indicates that LQD experiences smaller price fluctuations and is considered to be less risky than VDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LQD | VDC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.62% | 4.47% | -2.85% |
Volatility (6M)Calculated over the trailing 6-month period | 3.94% | 9.87% | -5.93% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.32% | 12.43% | -7.11% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.65% | 13.15% | -4.50% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.68% | 14.65% | -5.97% |
LQD vs. VDC - Expense Ratio Comparison
LQD has a 0.15% expense ratio, which is higher than VDC's 0.09% 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
LQD vs. VDC - Dividend Comparison
LQD's dividend yield for the trailing twelve months is around 4.59%, more than VDC's 2.14% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.59% | 4.48% | 4.45% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% |
VDC Vanguard Consumer Staples ETF | 2.14% | 2.26% | 2.33% | 2.65% | 2.37% | 2.14% | 2.50% | 2.44% | 2.78% | 2.52% | 2.39% | 2.55% |
Frequently Asked Questions
LQD and VDC have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VDC has higher volatility (4.47%) compared to LQD (1.62%). In terms of maximum drawdown, LQD dropped -24.95% vs VDC's -34.24%.
On 10-year performance, VDC leads with 7.63% vs 2.41% for LQD. On fees, VDC is cheaper at 0.09% per year. On volatility, LQD has been the lower-risk option at 1.62%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VDC has performed better with a 7.63% return vs 2.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VDC is cheaper with a 0.09% expense ratio, compared with 0.15% for LQD.
LQD has the higher dividend yield at 4.59%, compared with 2.14% for VDC.
LQD is categorized as Corporate Bonds, while VDC is Consumer Staples Equities. LQD tracks iBoxx $ Liquid Investment Grade Index, while VDC tracks MSCI US Investable Market Consumer Staples 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for LQD and 0.09% for VDC.
LQD currently has the higher Sharpe Ratio (1.08 vs 0.33), 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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