VBCJ vs. VTC

Last updated Jul 12, 2026

VBCJ (Vanguard Target Maturity 2036 Corporate Bond ETF) and VTC (Vanguard Total Corporate Bond ETF) are both Corporate Bonds funds from Vanguard - VBCJ tracks the ICE 2036 Maturity US Corporate Constrained Index while VTC tracks the Bloomberg U.S. Corporate Bond Index. Both are passively managed. With a 0.98 correlation, they move nearly in lockstep. VBCJ charges 0.08%/yr vs 0.03%/yr for VTC.

Performance

VBCJ vs. VTC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Maturity 2036 Corporate Bond ETF (VBCJ) and Vanguard Total Corporate Bond ETF (VTC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VBCJ

• 1D: -0.23%
• 1M: -0.94%
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VTC

• 1D: -0.18%
• 1M: -0.75%
• 6M: -0.12%
• YTD: 0.19%
• 1Y: 4.29%
• 3Y*: 5.22%
• 5Y*: 0.05%
• 10Y*: —

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

VBCJ vs. VTC - Yearly Performance Comparison

	2026 (YTD)
VBCJ Vanguard Target Maturity 2036 Corporate Bond ETF	0.96%
VTC Vanguard Total Corporate Bond ETF	0.70%

Correlation

The correlation between VBCJ and VTC is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (All Time) Calculated using the full available price history since Mar 26, 2026	0.98

Return for Risk

VBCJ vs. VTC — Risk / Return Rank

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

VBCJ

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

VTC

VTC Risk / Return Rank: 30
VTC Sharpe Ratio Rank: 30
VTC Sortino Ratio Rank: 28
VTC Omega Ratio Rank: 27
VTC Calmar Ratio Rank: 32
VTC Martin Ratio Rank: 35

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.

VBCJ vs. VTC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Maturity 2036 Corporate Bond ETF (VBCJ) and Vanguard Total Corporate Bond ETF (VTC). 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.

	VBCJ	VTC	Difference
Sharpe ratio: Return per unit of total volatility	—	0.89	—
Sortino ratio: Return per unit of downside risk	—	1.31	—
Omega ratio: Gain probability vs. loss probability	—	1.16	—
Calmar ratio: Return relative to maximum drawdown	—	1.34	—
Martin ratio: Return relative to average drawdown	—	4.15	—

Drawdowns

VBCJ vs. VTC - Drawdown Comparison

The maximum VBCJ drawdown since its inception was -2.50%, smaller than the maximum VTC drawdown of -22.05%. Use the drawdown chart below to compare losses from any high point for VBCJ and VTC.

Drawdown Indicators

	VBCJ	VTC	Difference
Max Drawdown Largest peak-to-trough decline	-2.50%	-22.05%	+19.55%
Max Drawdown (1Y) Largest decline over 1 year	—	-2.88%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-6.46%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-22.05%	—
Current Drawdown Current decline from peak	-1.43%	-1.38%	-0.05%
Average Drawdown Average peak-to-trough decline	-0.66%	-5.78%	+5.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.93%	—

Volatility

Volatility by Period

	VBCJ	VTC	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.32%	—
Volatility (6M) Calculated over the trailing 6-month period	—	3.40%	—
Volatility (1Y) Calculated over the trailing 1-year period	5.77%	4.32%	+1.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.77%	7.08%	-1.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.77%	7.65%	-1.88%

VBCJ vs. VTC - Expense Ratio Comparison

VBCJ has a 0.08% expense ratio, which is higher than VTC's 0.03% 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

VBCJ vs. VTC - Dividend Comparison

VBCJ's dividend yield for the trailing twelve months is around 1.31%, less than VTC's 4.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBCJ Vanguard Target Maturity 2036 Corporate Bond ETF	1.31%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VTC Vanguard Total Corporate Bond ETF	4.97%	4.76%	4.50%	3.80%	3.13%	2.36%	2.69%	3.34%	3.53%	0.55%

Frequently Asked Questions

Can I hold both VBCJ and VTC in my portfolio?

With a correlation of 0.98, VBCJ and VTC move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which ETF is better, VBCJ or VTC?

On fees, VTC is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VBCJ or VTC?

VTC is cheaper with a 0.03% expense ratio, compared with 0.08% for VBCJ.

Which ETF pays a higher dividend yield, VBCJ or VTC?

VTC has the higher dividend yield at 4.97%, compared with 1.31% for VBCJ.

What is the main difference between VBCJ and VTC?

VBCJ tracks ICE 2036 Maturity US Corporate Constrained Index, while VTC tracks Bloomberg U.S. Corporate Bond Index. Their fees differ too: 0.08% for VBCJ and 0.03% for VTC.