VBCA vs. LQDW

Last updated Jul 17, 2026

VBCA (Vanguard Target Maturity 2027 Corporate Bond ETF) and LQDW (iShares Investment Grade Corporate Bond Buywrite Strategy ETF) are both Corporate Bonds funds - VBCA tracks the ICE 2027 Maturity US Corporate Constrained Index while LQDW tracks the CBOE LQD BuyWrite Index. Both are passively managed. A 0.69 correlation means they provide meaningful diversification when combined. VBCA charges 0.08%/yr vs 0.34%/yr for LQDW.

Performance

VBCA vs. LQDW - 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 Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VBCA

• 1D: 0.01%
• 1M: 0.26%
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

LQDW

• 1D: -0.04%
• 1M: -0.51%
• 6M: 0.81%
• YTD: 1.30%
• 1Y: 5.30%
• 3Y*: 3.24%
• 5Y*: —
• 10Y*: —

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

VBCA vs. LQDW - Yearly Performance Comparison

	2026 (YTD)
VBCA Vanguard Target Maturity 2027 Corporate Bond ETF	1.34%
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	1.69%

Correlation

The correlation between VBCA and LQDW is 0.69, 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 26, 2026	0.69

Return for Risk

VBCA vs. LQDW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VBCA

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

LQDW

LQDW Risk / Return Rank: 52
LQDW Sharpe Ratio Rank: 51
LQDW Sortino Ratio Rank: 50
LQDW Omega Ratio Rank: 56
LQDW Calmar Ratio Rank: 50
LQDW Martin Ratio Rank: 54

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VBCA vs. LQDW - 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 Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW). 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.

	VBCA	LQDW	Difference
Sharpe ratio: Return per unit of total volatility	—	1.44	—
Sortino ratio: Return per unit of downside risk	—	2.01	—
Omega ratio: Gain probability vs. loss probability	—	1.28	—
Calmar ratio: Return relative to maximum drawdown	—	2.05	—
Martin ratio: Return relative to average drawdown	—	7.37	—

Drawdowns

VBCA vs. LQDW - Drawdown Comparison

The maximum VBCA drawdown since its inception was -0.19%, smaller than the maximum LQDW drawdown of -9.20%. Use the drawdown chart below to compare losses from any high point for VBCA and LQDW.

Drawdown Indicators

	VBCA	LQDW	Difference
Max Drawdown Largest peak-to-trough decline	-0.19%	-9.20%	+9.01%
Max Drawdown (1Y) Largest decline over 1 year	—	-2.59%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-6.74%	—
Current Drawdown Current decline from peak	0.00%	-1.02%	+1.02%
Average Drawdown Average peak-to-trough decline	-0.04%	-2.29%	+2.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.72%	—

Volatility

Volatility by Period

	VBCA	LQDW	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.01%	—
Volatility (6M) Calculated over the trailing 6-month period	—	3.24%	—
Volatility (1Y) Calculated over the trailing 1-year period	0.91%	3.70%	-2.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.91%	5.45%	-4.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.91%	5.45%	-4.54%

VBCA vs. LQDW - Expense Ratio Comparison

VBCA has a 0.08% expense ratio, which is lower than LQDW's 0.34% expense ratio.

Dividends

VBCA vs. LQDW - Dividend Comparison

VBCA's dividend yield for the trailing twelve months is around 0.74%, less than LQDW's 12.23% yield.

Position	TTM	2025	2024	2023	2022
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	12.23%	16.02%	15.74%	19.28%	8.85%
VBCA Vanguard Target Maturity 2027 Corporate Bond ETF	0.74%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VBCA and LQDW in my portfolio?

VBCA and LQDW have a correlation of 0.69, 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 LQDW?

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 LQDW?

VBCA is cheaper with a 0.08% expense ratio, compared with 0.34% for LQDW.

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

LQDW has the higher dividend yield at 12.23%, compared with 0.74% for VBCA.

What is the main difference between VBCA and LQDW?

VBCA tracks ICE 2027 Maturity US Corporate Constrained Index, while LQDW tracks CBOE LQD BuyWrite Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.08% for VBCA and 0.34% for LQDW.