LQD vs. VTC
Compare and contrast key facts about iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and Vanguard Total Corporate Bond ETF (VTC).
LQD and VTC are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. LQD is a passively managed fund by iShares that tracks the performance of the iBoxx $ Liquid Investment Grade Index. It was launched on Jul 26, 2002. VTC is a passively managed fund by Vanguard that tracks the performance of the Bloomberg Barclays U.S. Corporate Bond Index. It was launched on Nov 7, 2017. Both LQD and VTC 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: LQD or VTC.
Key characteristics
| LQD | VTC | |
|---|---|---|
| YTD Return | 1.49% | 2.47% |
| 1Y Return | 8.69% | 8.71% |
| 3Y Return (Ann) | -2.74% | -1.88% |
| 5Y Return (Ann) | 0.13% | 0.46% |
| Sharpe Ratio | 1.29 | 1.55 |
| Sortino Ratio | 1.89 | 2.30 |
| Omega Ratio | 1.22 | 1.27 |
| Calmar Ratio | 0.54 | 0.62 |
| Martin Ratio | 4.41 | 5.92 |
| Ulcer Index | 2.18% | 1.60% |
| Daily Std Dev | 7.42% | 6.09% |
| Max Drawdown | -24.95% | -22.05% |
| Current Drawdown | -10.62% | -7.83% |
Correlation
The correlation between LQD and VTC is 0.96, 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
LQD vs. VTC - Performance Comparison
In the year-to-date period, LQD achieves a 1.49% return, which is significantly lower than VTC's 2.47% 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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LQD vs. VTC - Expense Ratio Comparison
LQD has a 0.15% 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%.
Risk-Adjusted Performance
LQD vs. VTC - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) 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.
Dividends
LQD vs. VTC - Dividend Comparison
LQD's dividend yield for the trailing twelve months is around 4.41%, more than VTC's 4.35% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.41% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% | 3.39% | 3.83% |
VTC Vanguard Total Corporate Bond ETF | 4.35% | 3.81% | 3.13% | 2.36% | 2.69% | 3.34% | 3.54% | 0.55% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
LQD vs. VTC - Drawdown Comparison
The maximum LQD drawdown since its inception was -24.95%, which is greater than VTC's maximum drawdown of -22.05%. Use the drawdown chart below to compare losses from any high point for LQD and VTC. For additional features, visit the drawdowns tool.
Volatility
LQD vs. VTC - Volatility Comparison
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a higher volatility of 2.49% compared to Vanguard Total Corporate Bond ETF (VTC) at 1.94%. This indicates that LQD'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.