VBCI vs. VGT

Last updated Jul 12, 2026

VBCI (Vanguard Target Maturity 2035 Corporate Bond ETF) and VGT (Vanguard Information Technology ETF) are both exchange-traded funds - VBCI is a Corporate Bonds fund tracking the ICE 2035 Maturity US Corporate Constrained Index, while VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index. Both are passively managed. At a 0.44 correlation, their price movements are largely independent. VBCI charges 0.08%/yr vs 0.09%/yr for VGT.

Performance

VBCI vs. VGT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Maturity 2035 Corporate Bond ETF (VBCI) and Vanguard Information Technology ETF (VGT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VBCI

• 1D: -0.18%
• 1M: -0.56%
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VGT

• 1D: 0.31%
• 1M: 1.85%
• 6M: 24.25%
• YTD: 25.60%
• 1Y: 41.54%
• 3Y*: 29.85%
• 5Y*: 19.12%
• 10Y*: 25.00%

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

VBCI vs. VGT - Yearly Performance Comparison

	2026 (YTD)
VBCI Vanguard Target Maturity 2035 Corporate Bond ETF	1.16%
VGT Vanguard Information Technology ETF	32.01%

Correlation

The correlation between VBCI and VGT is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Mar 26, 2026	0.44

Return for Risk

VBCI vs. VGT — Risk / Return Rank

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

VBCI

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

VGT

VGT Risk / Return Rank: 61
VGT Sharpe Ratio Rank: 68
VGT Sortino Ratio Rank: 60
VGT Omega Ratio Rank: 61
VGT Calmar Ratio Rank: 63
VGT 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.

VBCI vs. VGT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Maturity 2035 Corporate Bond ETF (VBCI) and Vanguard Information Technology ETF (VGT). 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.

	VBCI	VGT	Difference
Sharpe ratio: Return per unit of total volatility	—	1.76	—
Sortino ratio: Return per unit of downside risk	—	2.28	—
Omega ratio: Gain probability vs. loss probability	—	1.30	—
Calmar ratio: Return relative to maximum drawdown	—	2.49	—
Martin ratio: Return relative to average drawdown	—	7.26	—

Drawdowns

VBCI vs. VGT - Drawdown Comparison

The maximum VBCI drawdown since its inception was -2.21%, smaller than the maximum VGT drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for VBCI and VGT.

Drawdown Indicators

	VBCI	VGT	Difference
Max Drawdown Largest peak-to-trough decline	-2.21%	-54.63%	+52.42%
Max Drawdown (1Y) Largest decline over 1 year	—	-16.40%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-27.23%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-35.07%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.07%	—
Current Drawdown Current decline from peak	-1.23%	-6.00%	+4.77%
Average Drawdown Average peak-to-trough decline	-0.60%	-7.94%	+7.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	5.61%	—

Volatility

Volatility by Period

	VBCI	VGT	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	9.70%	—
Volatility (6M) Calculated over the trailing 6-month period	—	19.32%	—
Volatility (1Y) Calculated over the trailing 1-year period	5.42%	23.23%	-17.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.42%	25.66%	-20.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.42%	24.79%	-19.37%

VBCI vs. VGT - Expense Ratio Comparison

VBCI has a 0.08% expense ratio, which is lower than VGT'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

VBCI vs. VGT - Dividend Comparison

VBCI's dividend yield for the trailing twelve months is around 1.28%, more than VGT's 0.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBCI Vanguard Target Maturity 2035 Corporate Bond ETF	1.28%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VGT Vanguard Information Technology ETF	0.37%	0.40%	0.60%	0.65%	0.91%	0.64%	0.82%	1.11%	1.29%	0.99%	1.31%	1.28%

Frequently Asked Questions

Can I hold both VBCI and VGT in my portfolio?

VBCI and VGT have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VBCI or VGT?

On fees, VBCI 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, VBCI or VGT?

VBCI is cheaper with a 0.08% expense ratio, compared with 0.09% for VGT.

Which ETF pays a higher dividend yield, VBCI or VGT?

VBCI has the higher dividend yield at 1.28%, compared with 0.37% for VGT.

What is the main difference between VBCI and VGT?

VBCI is categorized as Corporate Bonds, while VGT is Technology Equities. VBCI tracks ICE 2035 Maturity US Corporate Constrained Index, while VGT tracks MSCI USA IMI Information Technology 25/50 Index. Their fees differ too: 0.08% for VBCI and 0.09% for VGT.