LQDH vs. VCIT
LQDH (iShares Interest Rate Hedged Corporate Bond ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both Corporate Bonds funds. LQDH is actively managed, while VCIT is passively managed. Over the past 10 years, LQDH returned 4.64%/yr vs 2.93%/yr for VCIT. At a 0.26 correlation, their price movements are largely independent. LQDH charges 0.25%/yr vs 0.04%/yr for VCIT.
Performance
LQDH vs. VCIT - Performance Comparison
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Returns By Period
In the year-to-date period, LQDH achieves a 2.31% return, which is significantly higher than VCIT's 0.18% return. Over the past 10 years, LQDH has outperformed VCIT with an annualized return of 4.64%, while VCIT has yielded a comparatively lower 2.93% annualized return.
LQDH
- 1D
- -0.09%
- 1M
- 1.29%
- YTD
- 2.31%
- 6M
- 3.11%
- 1Y
- 7.62%
- 3Y*
- 8.08%
- 5Y*
- 5.28%
- 10Y*
- 4.64%
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%
LQDH vs. VCIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LQDH iShares Interest Rate Hedged Corporate Bond ETF | 2.31% | 7.00% | 7.43% | 11.14% | -1.88% | 1.84% | 1.68% | 9.50% | -2.20% | 6.00% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 0.18% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
Correlation
The correlation between LQDH and VCIT is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.39 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.34 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.35 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.30 |
Correlation (All Time) Calculated using the full available price history since Jun 18, 2014 | 0.26 |
The correlation between LQDH and VCIT shifts across timeframes, from 0.26 (all time) to 0.39 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
LQDH vs. VCIT — Risk / Return Rank
LQDH
VCIT
LQDH vs. VCIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Interest Rate Hedged Corporate Bond ETF (LQDH) 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.
| LQDH | VCIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.33 | ||
| Sortino ratioReturn per unit of downside risk | +2.08 | ||
| Omega ratioGain probability vs. loss probability | 1.57 | 1.27 | +0.30 |
| Calmar ratioReturn relative to maximum drawdown | 3.26 | 2.08 | +1.18 |
| Martin ratioReturn relative to average drawdown | 13.85 | 6.95 | +6.91 |
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
| LQDH | VCIT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.83 | 1.50 | +1.33 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.20 | 0.19 | +1.02 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.72 | 0.47 | +0.25 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.58 | 0.75 | -0.17 |
Drawdowns
LQDH vs. VCIT - Drawdown Comparison
The maximum LQDH drawdown since its inception was -24.63%, which is greater than VCIT's maximum drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for LQDH and VCIT.
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Drawdown Indicators
| LQDH | VCIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -24.63% | -20.56% | -4.07% |
Max Drawdown (1Y)Largest decline over 1 year | -2.34% | -2.96% | +0.62% |
Max Drawdown (3Y)Largest decline over 3 years | -4.86% | -6.11% | +1.25% |
Max Drawdown (5Y)Largest decline over 5 years | -7.08% | -20.56% | +13.48% |
Max Drawdown (10Y)Largest decline over 10 years | -24.63% | -20.56% | -4.07% |
Current DrawdownCurrent decline from peak | -0.09% | -1.36% | +1.27% |
Average DrawdownAverage peak-to-trough decline | -1.68% | -3.16% | +1.48% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.55% | 0.88% | -0.33% |
Volatility
LQDH vs. VCIT - Volatility Comparison
The current volatility for iShares Interest Rate Hedged Corporate Bond ETF (LQDH) is 0.50%, while Vanguard Intermediate-Term Corporate Bond ETF (VCIT) has a volatility of 1.38%. This indicates that LQDH 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
| LQDH | VCIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.50% | 1.38% | -0.88% |
Volatility (6M)Calculated over the trailing 6-month period | 2.03% | 3.06% | -1.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.70% | 4.10% | -1.40% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.41% | 6.61% | -2.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.44% | 6.28% | +0.16% |
LQDH vs. VCIT - Expense Ratio Comparison
LQDH has a 0.25% 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
LQDH vs. VCIT - Dividend Comparison
LQDH's dividend yield for the trailing twelve months is around 5.95%, more than VCIT's 4.80% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQDH iShares Interest Rate Hedged Corporate Bond ETF | 5.95% | 6.06% | 7.57% | 7.69% | 3.73% | 1.65% | 2.22% | 3.09% | 5.08% | 2.37% | 2.33% | 2.98% |
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
LQDH and VCIT have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCIT has higher volatility (1.38%) compared to LQDH (0.50%). In terms of maximum drawdown, LQDH dropped -24.63% vs VCIT's -20.56%.
On 10-year performance, LQDH leads with 4.64% vs 2.93% for VCIT. On fees, VCIT is cheaper at 0.04% per year. On volatility, LQDH has been the lower-risk option at 0.50%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, LQDH has performed better with a 4.64% return vs 2.93%. 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 0.25% for LQDH.
LQDH has the higher dividend yield at 5.95%, compared with 4.80% for VCIT.
They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.25% for LQDH and 0.04% for VCIT.
LQDH currently has the higher Sharpe Ratio (2.83 vs 1.50), 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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