LQDB vs. VCIT
LQDB (iShares BBB Rated Corporate Bond ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both Corporate Bonds funds - LQDB tracks the iBoxx USD Liquid Investment Grade BBB 0+ Index while VCIT tracks the Barclays U.S. 5-10 Year Corp Index. Both are passively managed. Over the past 5 years, LQDB returned 0.84%/yr vs 1.22%/yr for VCIT. With a 0.96 correlation, they move nearly in lockstep. LQDB charges 0.15%/yr vs 0.04%/yr for VCIT.
Performance
LQDB vs. VCIT - Performance Comparison
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Returns By Period
In the year-to-date period, LQDB achieves a 0.77% return, which is significantly higher than VCIT's 0.18% return.
LQDB
- 1D
- -0.18%
- 1M
- 0.58%
- YTD
- 0.77%
- 6M
- 0.56%
- 1Y
- 5.96%
- 3Y*
- 5.59%
- 5Y*
- 0.84%
- 10Y*
- —
VCIT
- 1D
- -0.22%
- 1M
- 0.28%
- YTD
- 0.18%
- 6M
- 0.07%
- 1Y
- 6.13%
- 3Y*
- 6.00%
- 5Y*
- 1.22%
- 10Y*
- 2.93%
LQDB vs. VCIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
LQDB iShares BBB Rated Corporate Bond ETF | 0.77% | 7.50% | 2.37% | 9.60% | -15.51% | 2.35% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 0.18% | 9.34% | 3.20% | 8.98% | -13.98% | 0.83% |
Correlation
The correlation between LQDB and VCIT is 0.95 - 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 | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.97 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.96 |
Correlation (All Time) Calculated using the full available price history since May 21, 2021 | 0.96 |
The correlation between LQDB and VCIT has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.
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Return for Risk
LQDB vs. VCIT — Risk / Return Rank
LQDB
VCIT
LQDB vs. VCIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares BBB Rated Corporate Bond ETF (LQDB) 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.
| LQDB | VCIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.03 | ||
| Sortino ratioReturn per unit of downside risk | -0.07 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.27 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.24 | 2.08 | +0.16 |
| Martin ratioReturn relative to average drawdown | 6.94 | 6.95 | 0.00 |
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
| LQDB | VCIT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.47 | 1.50 | -0.03 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.12 | 0.19 | -0.06 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.47 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.15 | 0.75 | -0.61 |
Drawdowns
LQDB vs. VCIT - Drawdown Comparison
The maximum LQDB drawdown since its inception was -21.63%, which is greater than VCIT's maximum drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for LQDB and VCIT.
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Drawdown Indicators
| LQDB | VCIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -21.63% | -20.56% | -1.07% |
Max Drawdown (1Y)Largest decline over 1 year | -2.67% | -2.96% | +0.29% |
Max Drawdown (3Y)Largest decline over 3 years | -5.90% | -6.11% | +0.21% |
Max Drawdown (5Y)Largest decline over 5 years | -21.63% | -20.56% | -1.07% |
Max Drawdown (10Y)Largest decline over 10 years | — | -20.56% | — |
Current DrawdownCurrent decline from peak | -0.83% | -1.36% | +0.53% |
Average DrawdownAverage peak-to-trough decline | -7.93% | -3.16% | -4.77% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.86% | 0.88% | -0.02% |
Volatility
LQDB vs. VCIT - Volatility Comparison
The current volatility for iShares BBB Rated Corporate Bond ETF (LQDB) is 1.31%, while Vanguard Intermediate-Term Corporate Bond ETF (VCIT) has a volatility of 1.38%. This indicates that LQDB experiences smaller price fluctuations and is considered to be less risky 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
| LQDB | VCIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.31% | 1.38% | -0.07% |
Volatility (6M)Calculated over the trailing 6-month period | 3.08% | 3.06% | +0.02% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.07% | 4.10% | -0.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.87% | 6.61% | +0.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.85% | 6.28% | +0.57% |
LQDB vs. VCIT - Expense Ratio Comparison
LQDB has a 0.15% expense ratio, which is higher than VCIT'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
LQDB vs. VCIT - Dividend Comparison
LQDB's dividend yield for the trailing twelve months is around 4.70%, less than VCIT's 4.80% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQDB iShares BBB Rated Corporate Bond ETF | 4.70% | 4.65% | 4.46% | 3.90% | 4.14% | 1.32% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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
With a correlation of 0.95, LQDB and VCIT 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.
VCIT has higher volatility (1.38%) compared to LQDB (1.31%). In terms of maximum drawdown, LQDB dropped -21.63% vs VCIT's -20.56%.
On 5-year performance, VCIT leads with 1.22% vs 0.84% for LQDB. On fees, VCIT is cheaper at 0.04% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VCIT has performed better with a 1.22% return vs 0.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCIT is cheaper with a 0.04% expense ratio, compared with 0.15% for LQDB.
VCIT has the higher dividend yield at 4.80%, compared with 4.70% for LQDB.
LQDB tracks iBoxx USD Liquid Investment Grade BBB 0+ Index , while VCIT tracks Barclays U.S. 5-10 Year Corp Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for LQDB and 0.04% for VCIT.
VCIT currently has the higher Sharpe Ratio (1.50 vs 1.47), 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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