VBCA vs. USIG

Last updated Jun 4, 2026

VBCA (Vanguard Target Maturity 2027 Corporate Bond ETF) and USIG (iShares Broad USD Investment Grade Corporate Bond ETF) are both Corporate Bonds funds - VBCA tracks the ICE 2027 Maturity US Corporate Constrained Index while USIG tracks the ICE BofA US Corporate. Both are passively managed. A 0.73 correlation means they provide meaningful diversification when combined. VBCA charges 0.08%/yr vs 0.04%/yr for USIG.

Performance

VBCA vs. USIG - 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 Broad USD Investment Grade Corporate Bond ETF (USIG). 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*: —

USIG

• 1D: -0.23%
• 1M: 0.56%
• YTD: 0.56%
• 6M: 0.37%
• 1Y: 6.04%
• 3Y*: 5.46%
• 5Y*: 0.72%
• 10Y*: 2.63%

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

VBCA vs. USIG - Yearly Performance Comparison

	2026 (YTD)
VBCA Vanguard Target Maturity 2027 Corporate Bond ETF	1.00%
USIG iShares Broad USD Investment Grade Corporate Bond ETF	1.70%

Correlation

The correlation between VBCA and USIG is 0.73, 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	0.73

Return for Risk

VBCA vs. USIG — Risk / Return Rank

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

USIG

USIG Risk / Return Rank: 42
USIG Sharpe Ratio Rank: 41
USIG Sortino Ratio Rank: 42
USIG Omega Ratio Rank: 39
USIG Calmar Ratio Rank: 44
USIG Martin Ratio Rank: 43

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. USIG - 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 Broad USD Investment Grade Corporate Bond ETF (USIG). 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	USIG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.47	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.11	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.39	—
Sharpe Ratio (All Time) Calculated using the full available price history	5.67	0.54	+5.13

Drawdowns

VBCA vs. USIG - Drawdown Comparison

The maximum VBCA drawdown since its inception was -0.19%, smaller than the maximum USIG drawdown of -22.21%. Use the drawdown chart below to compare losses from any high point for VBCA and USIG.

Drawdown Indicators

	VBCA	USIG	Difference
Max Drawdown Largest peak-to-trough decline	-0.19%	-22.21%	+22.02%
Max Drawdown (1Y) Largest decline over 1 year	—	-2.79%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-6.10%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-21.45%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-21.45%	—
Current Drawdown Current decline from peak	0.00%	-0.97%	+0.97%
Average Drawdown Average peak-to-trough decline	-0.05%	-3.42%	+3.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.86%	—

Volatility

Volatility by Period

	VBCA	USIG	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.27%	—
Volatility (6M) Calculated over the trailing 6-month period	—	3.04%	—
Volatility (1Y) Calculated over the trailing 1-year period	0.97%	4.13%	-3.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.97%	6.82%	-5.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.97%	6.82%	-5.85%

VBCA vs. USIG - Expense Ratio Comparison

VBCA has a 0.08% expense ratio, which is higher than USIG'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%.

Dividends

VBCA vs. USIG - Dividend Comparison

VBCA's dividend yield for the trailing twelve months is around 0.42%, less than USIG's 4.74% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
USIG iShares Broad USD Investment Grade Corporate Bond ETF	4.74%	4.62%	4.51%	3.94%	3.14%	2.33%	2.82%	3.37%	3.44%	3.03%	2.87%	3.24%
VBCA Vanguard Target Maturity 2027 Corporate Bond ETF	0.42%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VBCA and USIG in my portfolio?

VBCA and USIG have a correlation of 0.73, 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 USIG?

On fees, USIG is cheaper at 0.04% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VBCA or USIG?

USIG is cheaper with a 0.04% expense ratio, compared with 0.08% for VBCA.

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

USIG has the higher dividend yield at 4.74%, compared with 0.42% for VBCA.

What is the main difference between VBCA and USIG?

VBCA tracks ICE 2027 Maturity US Corporate Constrained Index, while USIG tracks ICE BofA US Corporate. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.08% for VBCA and 0.04% for USIG.