VCIT vs. IGOV
VCIT (Vanguard Intermediate-Term Corporate Bond ETF) and IGOV (iShares International Treasury Bond ETF) are both exchange-traded funds - VCIT is a Corporate Bonds fund tracking the Bloomberg U.S. 5-10 Year Corporate Bond Index, while IGOV is a International Government Bonds fund tracking the FTSE World Government Bond Index - Developed Markets Capped Select Index. Both are passively managed. Over the past 10 years, VCIT returned 2.87%/yr vs -1.49%/yr for IGOV. At a 0.48 correlation, their price movements are largely independent. VCIT charges 0.03%/yr vs 0.35%/yr for IGOV.
Performance
VCIT vs. IGOV - Performance Comparison
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Returns By Period
In the year-to-date period, VCIT achieves a 0.31% return, which is significantly higher than IGOV's -1.80% return. Over the past 10 years, VCIT has outperformed IGOV with an annualized return of 2.87%, while IGOV has yielded a comparatively lower -1.49% annualized return.
VCIT
- 1D
- 0.10%
- 1M
- 0.60%
- YTD
- 0.31%
- 6M
- 0.47%
- 1Y
- 5.17%
- 3Y*
- 6.09%
- 5Y*
- 1.14%
- 10Y*
- 2.87%
IGOV
- 1D
- -0.27%
- 1M
- -1.26%
- YTD
- -1.80%
- 6M
- -2.15%
- 1Y
- -2.13%
- 3Y*
- 1.73%
- 5Y*
- -4.43%
- 10Y*
- -1.49%
VCIT vs. IGOV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 0.31% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
IGOV iShares International Treasury Bond ETF | -1.80% | 9.96% | -6.50% | 5.57% | -22.07% | -9.25% | 10.88% | 3.76% | -2.60% | 11.38% |
Correlation
The correlation between VCIT and IGOV is 0.71, 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 | 0.71 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.70 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.72 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.48 |
Over the past year, VCIT and IGOV have become more correlated (0.71) than their long-term average of 0.48, meaning their price movements have been converging.
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Return for Risk
VCIT vs. IGOV — Risk / Return Rank
VCIT
IGOV
VCIT vs. IGOV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and iShares International Treasury Bond ETF (IGOV). 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.
| VCIT | IGOV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.53 | ||
| Sortino ratioReturn per unit of downside risk | +2.21 | ||
| Omega ratioGain probability vs. loss probability | 1.23 | 0.96 | +0.26 |
| Calmar ratioReturn relative to maximum drawdown | 1.76 | -0.38 | +2.13 |
| Martin ratioReturn relative to average drawdown | 5.56 | -0.83 | +6.38 |
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Drawdowns
VCIT vs. IGOV - Drawdown Comparison
The maximum VCIT drawdown since its inception was -20.56%, smaller than the maximum IGOV drawdown of -35.88%. Use the drawdown chart below to compare losses from any high point for VCIT and IGOV.
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Drawdown Indicators
| VCIT | IGOV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.56% | -35.88% | +15.32% |
Max Drawdown (1Y)Largest decline over 1 year | -2.96% | -5.70% | +2.74% |
Max Drawdown (3Y)Largest decline over 3 years | -6.11% | -10.65% | +4.54% |
Max Drawdown (5Y)Largest decline over 5 years | -20.56% | -32.92% | +12.36% |
Max Drawdown (10Y)Largest decline over 10 years | -20.56% | -35.88% | +15.32% |
Current DrawdownCurrent decline from peak | -1.22% | -25.00% | +23.78% |
Average DrawdownAverage peak-to-trough decline | -3.15% | -11.05% | +7.90% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.93% | 2.58% | -1.65% |
Volatility
VCIT vs. IGOV - Volatility Comparison
The current volatility for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) is 1.24%, while iShares International Treasury Bond ETF (IGOV) has a volatility of 2.29%. This indicates that VCIT experiences smaller price fluctuations and is considered to be less risky than IGOV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCIT | IGOV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.24% | 2.29% | -1.05% |
Volatility (6M)Calculated over the trailing 6-month period | 3.17% | 6.37% | -3.20% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.10% | 8.13% | -4.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.62% | 9.97% | -3.35% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.29% | 8.60% | -2.31% |
VCIT vs. IGOV - Expense Ratio Comparison
VCIT has a 0.03% expense ratio, which is lower than IGOV's 0.35% expense ratio.
Dividends
VCIT vs. IGOV - Dividend Comparison
VCIT's dividend yield for the trailing twelve months is around 4.80%, more than IGOV's 1.43% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IGOV iShares International Treasury Bond ETF | 1.43% | 1.41% | 0.59% | 0.00% | 0.11% | 0.39% | 0.00% | 0.24% | 0.31% | 0.19% | 0.69% | 0.12% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.80% | 4.62% | 4.43% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% |
Frequently Asked Questions
VCIT and IGOV have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IGOV has higher volatility (2.29%) compared to VCIT (1.24%). In terms of maximum drawdown, VCIT dropped -20.56% vs IGOV's -35.88%.
On 10-year performance, VCIT leads with 2.87% vs -1.49% for IGOV. On fees, VCIT is cheaper at 0.03% per year. On volatility, VCIT has been the lower-risk option at 1.24%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VCIT has performed better with a 2.87% return vs -1.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCIT is cheaper with a 0.03% expense ratio, compared with 0.35% for IGOV.
VCIT has the higher dividend yield at 4.80%, compared with 1.43% for IGOV.
VCIT is categorized as Corporate Bonds, while IGOV is International Government Bonds. VCIT tracks Bloomberg U.S. 5-10 Year Corporate Bond Index, while IGOV tracks FTSE World Government Bond Index - Developed Markets Capped Select Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VCIT and 0.35% for IGOV.
VCIT currently has the higher Sharpe Ratio (1.27 vs -0.26), 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.
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