VCIFX vs. SWAGX

Last updated Jun 23, 2026

VCIFX (Vertical Capital Income Fund) and SWAGX (Schwab U.S. Aggregate Bond Index Fund) are both mutual funds - VCIFX is a Global Bonds fund managed by VALIC, while SWAGX is a Total Bond Market fund tracking the Bloomberg US Aggregate Bond Index. Over the past 5 years, VCIFX returned -1.34%/yr vs -0.16%/yr for SWAGX. A 0.69 correlation means they provide meaningful diversification when combined. VCIFX charges 0.69%/yr vs 0.04%/yr for SWAGX.

Performance

VCIFX vs. SWAGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vertical Capital Income Fund (VCIFX) and Schwab U.S. Aggregate Bond Index Fund (SWAGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VCIFX achieves a -0.08% return, which is significantly lower than SWAGX's 0.38% return.

VCIFX

• 1D: 0.00%
• 1M: 0.95%
• YTD: -0.08%
• 6M: 0.20%
• 1Y: 3.75%
• 3Y*: 3.92%
• 5Y*: -1.34%
• 10Y*: 0.83%

SWAGX

• 1D: 0.22%
• 1M: 0.81%
• YTD: 0.38%
• 6M: 0.74%
• 1Y: 4.66%
• 3Y*: 4.01%
• 5Y*: -0.16%
• 10Y*: —

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

VCIFX vs. SWAGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VCIFX Vertical Capital Income Fund	-0.08%	9.15%	-1.00%	5.96%	-16.21%	-5.85%	10.46%	9.56%	-3.14%	6.57%
SWAGX Schwab U.S. Aggregate Bond Index Fund	0.38%	7.11%	1.38%	5.46%	-13.62%	-2.29%	7.39%	8.64%	-0.11%	2.62%

Correlation

The correlation between VCIFX and SWAGX is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (All Time) Calculated using the full available price history since Feb 23, 2017	0.69

The correlation between VCIFX and SWAGX has been stable across timeframes, ranging from 0.69 to 0.79 - a consistent structural relationship.

Return for Risk

VCIFX vs. SWAGX — Risk / Return Rank

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

VCIFX

VCIFX Risk / Return Rank: 10
VCIFX Sharpe Ratio Rank: 10
VCIFX Sortino Ratio Rank: 10
VCIFX Omega Ratio Rank: 10
VCIFX Calmar Ratio Rank: 10
VCIFX Martin Ratio Rank: 9

SWAGX

SWAGX Risk / Return Rank: 20
SWAGX Sharpe Ratio Rank: 21
SWAGX Sortino Ratio Rank: 22
SWAGX Omega Ratio Rank: 19
SWAGX Calmar Ratio Rank: 21
SWAGX Martin Ratio Rank: 19

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.

VCIFX vs. SWAGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vertical Capital Income Fund (VCIFX) and Schwab U.S. Aggregate Bond Index Fund (SWAGX). 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.

	VCIFX	SWAGX	Difference
Sharpe ratio: Return per unit of total volatility	0.80	1.21	-0.41
Sortino ratio: Return per unit of downside risk	1.20	1.84	-0.64
Omega ratio: Gain probability vs. loss probability	1.14	1.21	-0.07
Calmar ratio: Return relative to maximum drawdown	0.90	1.57	-0.67
Martin ratio: Return relative to average drawdown	2.50	4.48	-1.98

VCIFX vs. SWAGX - Sharpe Ratio Comparison

The current VCIFX Sharpe Ratio is 0.80, which is lower than the SWAGX Sharpe Ratio of 1.21. The chart below compares the historical Sharpe Ratios of VCIFX and SWAGX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VCIFX vs. SWAGX - Drawdown Comparison

The maximum VCIFX drawdown since its inception was -29.13%, which is greater than SWAGX's maximum drawdown of -19.68%. Use the drawdown chart below to compare losses from any high point for VCIFX and SWAGX.

Drawdown Indicators

	VCIFX	SWAGX	Difference
Max Drawdown Largest peak-to-trough decline	-29.13%	-19.68%	-9.45%
Max Drawdown (1Y) Largest decline over 1 year	-4.19%	-3.05%	-1.14%
Max Drawdown (3Y) Largest decline over 3 years	-7.75%	-6.14%	-1.61%
Max Drawdown (5Y) Largest decline over 5 years	-25.58%	-18.76%	-6.82%
Max Drawdown (10Y) Largest decline over 10 years	-27.38%	—	—
Current Drawdown Current decline from peak	-12.12%	-3.38%	-8.74%
Average Drawdown Average peak-to-trough decline	-14.02%	-5.67%	-8.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.50%	1.07%	+0.43%

Volatility

VCIFX vs. SWAGX - Volatility Comparison

Vertical Capital Income Fund (VCIFX) has a higher volatility of 1.28% compared to Schwab U.S. Aggregate Bond Index Fund (SWAGX) at 1.14%. This indicates that VCIFX's price experiences larger fluctuations and is considered to be riskier than SWAGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCIFX	SWAGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.28%	1.14%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	3.66%	2.94%	+0.72%
Volatility (1Y) Calculated over the trailing 1-year period	4.70%	3.95%	+0.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.02%	6.09%	-0.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.74%	5.11%	+0.63%

VCIFX vs. SWAGX - Expense Ratio Comparison

VCIFX has a 0.69% expense ratio, which is higher than SWAGX's 0.04% expense ratio.

Dividends

VCIFX vs. SWAGX - Dividend Comparison

VCIFX's dividend yield for the trailing twelve months is around 1.81%, less than SWAGX's 4.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWAGX Schwab U.S. Aggregate Bond Index Fund	4.13%	4.02%	3.88%	3.22%	1.93%	1.56%	2.47%	2.87%	2.80%	1.98%
VCIFX Vertical Capital Income Fund	1.81%	0.00%	0.00%	3.53%	3.64%	4.00%	1.76%	2.32%	0.93%	0.00%

Frequently Asked Questions

Can I hold both VCIFX and SWAGX in my portfolio?

VCIFX and SWAGX have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VCIFX or SWAGX?

VCIFX has higher volatility (1.28%) compared to SWAGX (1.14%). In terms of maximum drawdown, VCIFX dropped -29.13% vs SWAGX's -19.68%.

Which has better risk-adjusted returns?

SWAGX currently has the higher Sharpe Ratio (1.21 vs 0.80), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.