VBCF vs. LQDW

Last updated Jul 12, 2026

VBCF (Vanguard Target Maturity 2032 Corporate Bond ETF) and LQDW (iShares Investment Grade Corporate Bond Buywrite Strategy ETF) are both Corporate Bonds funds - VBCF tracks the ICE 2032 Maturity US Corporate Constrained Index while LQDW tracks the CBOE LQD BuyWrite Index. Both are passively managed. Their correlation of 0.85 suggests significant overlap in exposure. VBCF charges 0.08%/yr vs 0.34%/yr for LQDW.

Performance

VBCF vs. LQDW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Maturity 2032 Corporate Bond ETF (VBCF) and iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VBCF

• 1D: -0.20%
• 1M: -0.28%
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

LQDW

• 1D: -0.37%
• 1M: -0.38%
• 6M: 0.83%
• YTD: 1.20%
• 1Y: 5.19%
• 3Y*: 3.48%
• 5Y*: —
• 10Y*: —

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

VBCF vs. LQDW - Yearly Performance Comparison

	2026 (YTD)
VBCF Vanguard Target Maturity 2032 Corporate Bond ETF	1.27%
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	1.59%

Correlation

The correlation between VBCF and LQDW is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Mar 26, 2026	0.85

Return for Risk

VBCF vs. LQDW — Risk / Return Rank

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

VBCF

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

LQDW

LQDW Risk / Return Rank: 50
LQDW Sharpe Ratio Rank: 50
LQDW Sortino Ratio Rank: 47
LQDW Omega Ratio Rank: 53
LQDW Calmar Ratio Rank: 48
LQDW Martin Ratio Rank: 53

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.

VBCF vs. LQDW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Maturity 2032 Corporate Bond ETF (VBCF) 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.

	VBCF	LQDW	Difference
Sharpe ratio: Return per unit of total volatility	—	1.37	—
Sortino ratio: Return per unit of downside risk	—	1.93	—
Omega ratio: Gain probability vs. loss probability	—	1.27	—
Calmar ratio: Return relative to maximum drawdown	—	1.95	—
Martin ratio: Return relative to average drawdown	—	7.14	—

Drawdowns

VBCF vs. LQDW - Drawdown Comparison

The maximum VBCF drawdown since its inception was -1.86%, smaller than the maximum LQDW drawdown of -9.20%. Use the drawdown chart below to compare losses from any high point for VBCF and LQDW.

Drawdown Indicators

	VBCF	LQDW	Difference
Max Drawdown Largest peak-to-trough decline	-1.86%	-9.20%	+7.34%
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	-0.87%	-1.12%	+0.25%
Average Drawdown Average peak-to-trough decline	-0.60%	-2.29%	+1.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.71%	—

Volatility

Volatility by Period

	VBCF	LQDW	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.98%	—
Volatility (6M) Calculated over the trailing 6-month period	—	3.19%	—
Volatility (1Y) Calculated over the trailing 1-year period	4.26%	3.67%	+0.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.26%	5.45%	-1.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.26%	5.45%	-1.19%

VBCF vs. LQDW - Expense Ratio Comparison

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

Dividends

VBCF vs. LQDW - Dividend Comparison

VBCF's dividend yield for the trailing twelve months is around 0.89%, less than LQDW's 12.24% yield.

Position	TTM	2025	2024	2023	2022
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	12.24%	16.02%	15.74%	19.28%	8.85%
VBCF Vanguard Target Maturity 2032 Corporate Bond ETF	0.89%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VBCF and LQDW in my portfolio?

VBCF and LQDW have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VBCF or LQDW?

On fees, VBCF 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, VBCF or LQDW?

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

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

LQDW has the higher dividend yield at 12.24%, compared with 0.89% for VBCF.

What is the main difference between VBCF and LQDW?

VBCF tracks ICE 2032 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 VBCF and 0.34% for LQDW.