RQO.TO vs. VCB.TO
RQO.TO (RBC Target 2026 Corporate Bond Index ETF) and VCB.TO (Vanguard Canadian Corporate Bond Index ETF) are both Corporate Bonds funds. RQO.TO is actively managed, while VCB.TO is passively managed. Over the past 5 years, RQO.TO returned 1.59%/yr vs 2.12%/yr for VCB.TO. A 0.57 correlation means they provide meaningful diversification when combined.
Performance
RQO.TO vs. VCB.TO - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with RQO.TO having a 1.23% return and VCB.TO slightly higher at 1.27%.
RQO.TO
- 1D
- 0.05%
- 1M
- 0.24%
- 6M
- 1.17%
- YTD
- 1.23%
- 1Y
- 2.90%
- 3Y*
- 5.11%
- 5Y*
- 1.59%
- 10Y*
- —
VCB.TO
- 1D
- 0.12%
- 1M
- -0.39%
- 6M
- 0.73%
- YTD
- 1.27%
- 1Y
- 4.47%
- 3Y*
- 6.01%
- 5Y*
- 2.12%
- 10Y*
- —
RQO.TO vs. VCB.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
RQO.TO RBC Target 2026 Corporate Bond Index ETF | 1.23% | 3.57% | 5.40% | 6.86% | -7.50% | -2.27% | 0.63% |
VCB.TO Vanguard Canadian Corporate Bond Index ETF | 1.27% | 4.46% | 6.63% | 7.98% | -8.96% | -1.55% | 1.19% |
Correlation
The correlation between RQO.TO and VCB.TO is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.24 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.57 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
Correlation (All Time) Calculated using the full available price history since Sep 18, 2020 | 0.57 |
Over the past year, the correlation between RQO.TO and VCB.TO has dropped to 0.24 - well below their long-term average of 0.57, suggesting their price drivers have been diverging.
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Return for Risk
RQO.TO vs. VCB.TO — Risk / Return Rank
RQO.TO
VCB.TO
RQO.TO vs. VCB.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for RBC Target 2026 Corporate Bond Index ETF (RQO.TO) and Vanguard Canadian Corporate Bond Index ETF (VCB.TO). 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.
| RQO.TO | VCB.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.84 | ||
| Sortino ratioReturn per unit of downside risk | +5.37 | ||
| Omega ratioGain probability vs. loss probability | 2.05 | 1.24 | +0.81 |
| Calmar ratioReturn relative to maximum drawdown | 27.50 | 1.83 | +25.66 |
| Martin ratioReturn relative to average drawdown | 91.66 | 5.89 | +85.77 |
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Drawdowns
RQO.TO vs. VCB.TO - Drawdown Comparison
The maximum RQO.TO drawdown since its inception was -12.86%, smaller than the maximum VCB.TO drawdown of -14.00%. Use the drawdown chart below to compare losses from any high point for RQO.TO and VCB.TO.
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Drawdown Indicators
| RQO.TO | VCB.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -12.86% | -14.00% | +1.14% |
Max Drawdown (1Y)Largest decline over 1 year | -0.11% | -2.45% | +2.34% |
Max Drawdown (3Y)Largest decline over 3 years | -0.93% | -3.21% | +2.28% |
Max Drawdown (5Y)Largest decline over 5 years | -11.65% | -13.17% | +1.52% |
Current DrawdownCurrent decline from peak | 0.00% | -0.67% | +0.67% |
Average DrawdownAverage peak-to-trough decline | -3.73% | -3.04% | -0.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.03% | 0.76% | -0.73% |
Volatility
RQO.TO vs. VCB.TO - Volatility Comparison
The current volatility for RBC Target 2026 Corporate Bond Index ETF (RQO.TO) is 0.15%, while Vanguard Canadian Corporate Bond Index ETF (VCB.TO) has a volatility of 1.19%. This indicates that RQO.TO experiences smaller price fluctuations and is considered to be less risky than VCB.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| RQO.TO | VCB.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.15% | 1.19% | -1.04% |
Volatility (6M)Calculated over the trailing 6-month period | 0.47% | 2.79% | -2.32% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.72% | 3.52% | -2.80% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.98% | 4.91% | -1.93% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.93% | 9.61% | -6.68% |
Dividends
RQO.TO vs. VCB.TO - Dividend Comparison
RQO.TO's dividend yield for the trailing twelve months is around 3.03%, less than VCB.TO's 3.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
RQO.TO RBC Target 2026 Corporate Bond Index ETF | 3.03% | 2.66% | 2.56% | 1.98% | 1.86% | 1.97% | 0.52% | 0.00% | 0.00% | 0.00% |
VCB.TO Vanguard Canadian Corporate Bond Index ETF | 3.91% | 3.88% | 3.74% | 3.41% | 3.21% | 2.69% | 2.75% | 2.86% | 2.86% | 2.51% |
Frequently Asked Questions
RQO.TO and VCB.TO have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
They also come from different issuers: RBC and Vanguard.
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