LQDW vs. VCIT
LQDW (iShares Investment Grade Corporate Bond Buywrite Strategy ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both Corporate Bonds funds - LQDW tracks the CBOE LQD BuyWrite Index while VCIT tracks the Bloomberg U.S. 5-10 Year Corporate Bond Index. Both are passively managed. Over the past 3 years, LQDW returned 3.77%/yr vs 6.20%/yr for VCIT. Their correlation of 0.81 suggests significant overlap in exposure. LQDW charges 0.34%/yr vs 0.03%/yr for VCIT.
Performance
LQDW vs. VCIT - Performance Comparison
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Returns By Period
In the year-to-date period, LQDW achieves a 2.18% return, which is significantly higher than VCIT's 0.83% return.
LQDW
- 1D
- 0.12%
- 1M
- 1.36%
- YTD
- 2.18%
- 6M
- 2.16%
- 1Y
- 6.60%
- 3Y*
- 3.77%
- 5Y*
- —
- 10Y*
- —
VCIT
- 1D
- 0.12%
- 1M
- 0.72%
- YTD
- 0.83%
- 6M
- 0.65%
- 1Y
- 5.34%
- 3Y*
- 6.20%
- 5Y*
- 1.27%
- 10Y*
- 2.89%
LQDW vs. VCIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 2.18% | 9.05% | 2.60% | 3.99% | -6.78% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 0.83% | 9.34% | 3.20% | 8.98% | -3.27% |
Correlation
The correlation between LQDW and VCIT is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.82 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.79 |
Correlation (All Time) Calculated using the full available price history since Aug 22, 2022 | 0.81 |
The correlation between LQDW and VCIT has been stable across timeframes, ranging from 0.79 to 0.82 - a consistent structural relationship.
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Return for Risk
LQDW vs. VCIT — Risk / Return Rank
LQDW
VCIT
LQDW vs. VCIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| LQDW | VCIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.52 | ||
| Sortino ratioReturn per unit of downside risk | +0.65 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.23 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 2.55 | 1.81 | +0.74 |
| Martin ratioReturn relative to average drawdown | 9.49 | 5.72 | +3.77 |
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Drawdowns
LQDW vs. VCIT - Drawdown Comparison
The maximum LQDW drawdown since its inception was -9.20%, smaller than the maximum VCIT drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for LQDW and VCIT.
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Drawdown Indicators
| LQDW | VCIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -9.20% | -20.56% | +11.36% |
Max Drawdown (1Y)Largest decline over 1 year | -2.59% | -2.96% | +0.37% |
Max Drawdown (3Y)Largest decline over 3 years | -6.74% | -6.11% | -0.63% |
Max Drawdown (5Y)Largest decline over 5 years | — | -20.56% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -20.56% | — |
Current DrawdownCurrent decline from peak | 0.00% | -0.72% | +0.72% |
Average DrawdownAverage peak-to-trough decline | -2.31% | -3.15% | +0.84% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.70% | 0.94% | -0.24% |
Volatility
LQDW vs. VCIT - Volatility Comparison
The current volatility for iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) is 0.98%, while Vanguard Intermediate-Term Corporate Bond ETF (VCIT) has a volatility of 1.24%. This indicates that LQDW 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
| LQDW | VCIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.98% | 1.24% | -0.26% |
Volatility (6M)Calculated over the trailing 6-month period | 3.12% | 3.19% | -0.07% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.62% | 4.09% | -0.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.47% | 6.62% | -1.15% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.47% | 6.29% | -0.82% |
LQDW vs. VCIT - Expense Ratio Comparison
LQDW has a 0.34% expense ratio, which is higher than VCIT's 0.03% expense ratio.
Dividends
LQDW vs. VCIT - Dividend Comparison
LQDW's dividend yield for the trailing twelve months is around 12.46%, more than VCIT's 4.77% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF | 12.46% | 16.02% | 15.74% | 19.28% | 8.85% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.77% | 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
LQDW and VCIT have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCIT has higher volatility (1.24%) compared to LQDW (0.98%). In terms of maximum drawdown, LQDW dropped -9.20% vs VCIT's -20.56%.
On 3-year performance, VCIT leads with 6.20% vs 3.77% for LQDW. On fees, VCIT is cheaper at 0.03% per year. On volatility, LQDW has been the lower-risk option at 0.98%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, VCIT has performed better with a 6.20% return vs 3.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCIT is cheaper with a 0.03% expense ratio, compared with 0.34% for LQDW.
LQDW has the higher dividend yield at 12.46%, compared with 4.77% for VCIT.
LQDW tracks CBOE LQD BuyWrite Index, while VCIT tracks Bloomberg U.S. 5-10 Year Corporate Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.34% for LQDW and 0.03% for VCIT.
LQDW currently has the higher Sharpe Ratio (1.83 vs 1.31), 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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