VBCA vs. BTOT

Last updated Jun 4, 2026

VBCA (Vanguard Target Maturity 2027 Corporate Bond ETF) and BTOT (iShares Total USD Fixed Income Market ETF) are both exchange-traded funds - VBCA is a Corporate Bonds fund tracking the ICE 2027 Maturity US Corporate Constrained Index, while BTOT is a Total Bond Market fund tracking the Bloomberg US Total Fixed Income Market Index. Both are passively managed. A 0.77 correlation means they provide meaningful diversification when combined. VBCA charges 0.08%/yr vs 0.09%/yr for BTOT.

Performance

VBCA vs. BTOT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Maturity 2027 Corporate Bond ETF (VBCA) and iShares Total USD Fixed Income Market ETF (BTOT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VBCA

• 1D: 0.00%
• 1M: 0.33%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

BTOT

• 1D: -0.21%
• 1M: 0.29%
• YTD: 0.39%
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

VBCA vs. BTOT - Yearly Performance Comparison

	2026 (YTD)
VBCA Vanguard Target Maturity 2027 Corporate Bond ETF	1.00%
BTOT iShares Total USD Fixed Income Market ETF	1.16%

Correlation

The correlation between VBCA and BTOT is 0.77, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Mar 27, 2026	0.77

Return for Risk

VBCA vs. BTOT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Maturity 2027 Corporate Bond ETF (VBCA) and iShares Total USD Fixed Income Market ETF (BTOT). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	VBCA	BTOT	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	5.67	0.41	+5.26

Drawdowns

VBCA vs. BTOT - Drawdown Comparison

The maximum VBCA drawdown since its inception was -0.19%, smaller than the maximum BTOT drawdown of -2.36%. Use the drawdown chart below to compare losses from any high point for VBCA and BTOT.

Drawdown Indicators

	VBCA	BTOT	Difference
Max Drawdown Largest peak-to-trough decline	-0.19%	-2.36%	+2.17%
Current Drawdown Current decline from peak	0.00%	-1.18%	+1.18%
Average Drawdown Average peak-to-trough decline	-0.05%	-0.77%	+0.72%

Volatility

Volatility by Period

	VBCA	BTOT	Difference
Volatility (1Y) Calculated over the trailing 1-year period	0.97%	3.70%	-2.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.97%	3.70%	-2.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.97%	3.70%	-2.73%

VBCA vs. BTOT - Expense Ratio Comparison

VBCA has a 0.08% expense ratio, which is lower than BTOT's 0.09% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VBCA vs. BTOT - Dividend Comparison

VBCA's dividend yield for the trailing twelve months is around 0.42%, less than BTOT's 2.13% yield.

Position	TTM	2025
BTOT iShares Total USD Fixed Income Market ETF	2.13%	0.22%
VBCA Vanguard Target Maturity 2027 Corporate Bond ETF	0.42%	0.00%

Frequently Asked Questions

Can I hold both VBCA and BTOT in my portfolio?

VBCA and BTOT have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VBCA or BTOT?

On fees, VBCA is cheaper at 0.08% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VBCA or BTOT?

VBCA is cheaper with a 0.08% expense ratio, compared with 0.09% for BTOT.

Which ETF pays a higher dividend yield, VBCA or BTOT?

BTOT has the higher dividend yield at 2.13%, compared with 0.42% for VBCA.

What is the main difference between VBCA and BTOT?

VBCA is categorized as Corporate Bonds, while BTOT is Total Bond Market. VBCA tracks ICE 2027 Maturity US Corporate Constrained Index, while BTOT tracks Bloomberg US Total Fixed Income Market Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.08% for VBCA and 0.09% for BTOT.