LQIG vs. VTC
Compare and contrast key facts about SPDR MarketAxess Investment Grade 400 Corporate Bond ETF (LQIG) and Vanguard Total Corporate Bond ETF (VTC).
LQIG and VTC are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. LQIG is a passively managed fund by SPDR that tracks the performance of the MarketAxess U.S. Investment Grade 400 Corporate Bond Index - Benchmark TR Gross. It was launched on May 11, 2022. 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 LQIG 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: LQIG or VTC.
Key characteristics
| LQIG | VTC | |
|---|---|---|
| YTD Return | 3.58% | 3.60% |
| 1Y Return | 12.60% | 12.06% |
| Sharpe Ratio | 1.64 | 1.80 |
| Sortino Ratio | 2.43 | 2.68 |
| Omega Ratio | 1.29 | 1.32 |
| Calmar Ratio | 2.21 | 0.67 |
| Martin Ratio | 6.53 | 7.28 |
| Ulcer Index | 1.78% | 1.54% |
| Daily Std Dev | 7.07% | 6.23% |
| Max Drawdown | -11.86% | -22.05% |
| Current Drawdown | -2.41% | -6.81% |
Correlation
The correlation between LQIG and VTC is 0.99, 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
LQIG vs. VTC - Performance Comparison
The year-to-date returns for both investments are quite close, with LQIG having a 3.58% return and VTC slightly higher at 3.60%. 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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LQIG vs. VTC - Expense Ratio Comparison
LQIG has a 0.07% 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
LQIG vs. VTC - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR MarketAxess Investment Grade 400 Corporate Bond ETF (LQIG) 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
LQIG vs. VTC - Dividend Comparison
LQIG's dividend yield for the trailing twelve months is around 5.35%, more than VTC's 4.30% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|
LQIG SPDR MarketAxess Investment Grade 400 Corporate Bond ETF | 5.35% | 4.85% | 4.04% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VTC Vanguard Total Corporate Bond ETF | 4.30% | 3.81% | 3.13% | 2.36% | 2.69% | 3.34% | 3.54% | 0.55% |
Drawdowns
LQIG vs. VTC - Drawdown Comparison
The maximum LQIG drawdown since its inception was -11.86%, smaller than the maximum VTC drawdown of -22.05%. Use the drawdown chart below to compare losses from any high point for LQIG and VTC. For additional features, visit the drawdowns tool.
Volatility
LQIG vs. VTC - Volatility Comparison
SPDR MarketAxess Investment Grade 400 Corporate Bond ETF (LQIG) has a higher volatility of 2.37% compared to Vanguard Total Corporate Bond ETF (VTC) at 1.96%. This indicates that LQIG'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.