USIG vs. VCIT
USIG (iShares Broad USD Investment Grade Corporate Bond ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both Corporate Bonds funds - USIG tracks the ICE BofA US Corporate while VCIT tracks the Bloomberg U.S. 5-10 Year Corporate Bond Index. Both are passively managed. Over the past 10 years, USIG returned 2.57%/yr vs 2.86%/yr for VCIT. Their correlation of 0.90 suggests significant overlap in exposure. USIG charges 0.04%/yr vs 0.03%/yr for VCIT.
Performance
USIG vs. VCIT - Performance Comparison
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Returns By Period
In the year-to-date period, USIG achieves a 0.71% return, which is significantly higher than VCIT's 0.22% return. Over the past 10 years, USIG has underperformed VCIT with an annualized return of 2.57%, while VCIT has yielded a comparatively higher 2.86% annualized return.
USIG
- 1D
- -0.20%
- 1M
- 0.66%
- YTD
- 0.71%
- 6M
- 0.83%
- 1Y
- 5.29%
- 3Y*
- 5.41%
- 5Y*
- 0.59%
- 10Y*
- 2.57%
VCIT
- 1D
- -0.23%
- 1M
- 0.50%
- YTD
- 0.22%
- 6M
- 0.37%
- 1Y
- 5.37%
- 3Y*
- 6.06%
- 5Y*
- 1.14%
- 10Y*
- 2.86%
USIG vs. VCIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
USIG iShares Broad USD Investment Grade Corporate Bond ETF | 0.71% | 7.86% | 2.56% | 8.71% | -15.30% | -1.34% | 9.44% | 13.99% | -2.21% | 5.75% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 0.22% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
Correlation
The correlation between USIG and VCIT is 0.98 - 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 | 0.98 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.97 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.94 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.90 |
The correlation between USIG and VCIT has been stable across timeframes, ranging from 0.90 to 0.98 - a consistent structural relationship.
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Return for Risk
USIG vs. VCIT — Risk / Return Rank
USIG
VCIT
USIG vs. VCIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Broad USD Investment Grade Corporate Bond ETF (USIG) 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.
| USIG | VCIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.02 | ||
| Sortino ratioReturn per unit of downside risk | -0.04 | ||
| Omega ratioGain probability vs. loss probability | 1.23 | 1.23 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 1.90 | 1.82 | +0.08 |
| Martin ratioReturn relative to average drawdown | 6.05 | 5.78 | +0.26 |
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Drawdowns
USIG vs. VCIT - Drawdown Comparison
The maximum USIG drawdown since its inception was -22.21%, which is greater than VCIT's maximum drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for USIG and VCIT.
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Drawdown Indicators
| USIG | VCIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.21% | -20.56% | -1.65% |
Max Drawdown (1Y)Largest decline over 1 year | -2.79% | -2.96% | +0.17% |
Max Drawdown (3Y)Largest decline over 3 years | -6.10% | -6.11% | +0.01% |
Max Drawdown (5Y)Largest decline over 5 years | -21.45% | -20.56% | -0.89% |
Max Drawdown (10Y)Largest decline over 10 years | -21.45% | -20.56% | -0.89% |
Current DrawdownCurrent decline from peak | -0.81% | -1.32% | +0.51% |
Average DrawdownAverage peak-to-trough decline | -3.41% | -3.15% | -0.26% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.88% | 0.93% | -0.05% |
Volatility
USIG vs. VCIT - Volatility Comparison
The current volatility for iShares Broad USD Investment Grade Corporate Bond ETF (USIG) is 1.14%, while Vanguard Intermediate-Term Corporate Bond ETF (VCIT) has a volatility of 1.23%. This indicates that USIG 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
| USIG | VCIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.14% | 1.23% | -0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 3.13% | 3.18% | -0.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.10% | 4.11% | -0.01% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.82% | 6.62% | +0.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.83% | 6.29% | +0.54% |
USIG vs. VCIT - Expense Ratio Comparison
USIG has a 0.04% expense ratio, which is higher than VCIT's 0.03% 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
USIG vs. VCIT - Dividend Comparison
USIG's dividend yield for the trailing twelve months is around 4.73%, less than VCIT's 4.80% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
USIG iShares Broad USD Investment Grade Corporate Bond ETF | 4.73% | 4.62% | 4.51% | 3.94% | 3.14% | 2.33% | 2.82% | 3.37% | 3.44% | 3.03% | 2.87% | 3.24% |
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 0.98, USIG 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 (1.23%) compared to USIG (1.14%). In terms of maximum drawdown, USIG dropped -22.21% vs VCIT's -20.56%.
On 10-year performance, VCIT leads with 2.86% vs 2.57% for USIG. On fees, VCIT is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VCIT has performed better with a 2.86% return vs 2.57%. 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 0.04% for USIG.
VCIT has the higher dividend yield at 4.80%, compared with 4.73% for USIG.
USIG tracks ICE BofA US Corporate, 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: 0.04% for USIG and 0.03% for VCIT.
VCIT currently has the higher Sharpe Ratio (1.31 vs 1.30), 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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