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VCIT vs. VWOB
Performance
Return for Risk
Drawdowns
Volatility
Dividends

Performance

VCIT vs. VWOB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and Vanguard Emerging Markets Government Bond ETF (VWOB). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VCIT achieves a 0.41% return, which is significantly lower than VWOB's 2.08% return. Over the past 10 years, VCIT has underperformed VWOB with an annualized return of 2.93%, while VWOB has yielded a comparatively higher 3.62% annualized return.


VCIT

1D
-0.07%
1M
0.28%
YTD
0.41%
6M
0.89%
1Y
5.54%
3Y*
6.37%
5Y*
1.11%
10Y*
2.93%

VWOB

1D
0.16%
1M
1.35%
YTD
2.08%
6M
2.45%
1Y
10.23%
3Y*
9.31%
5Y*
2.01%
10Y*
3.62%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VCIT vs. VWOB - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
VCIT
Vanguard Intermediate-Term Corporate Bond ETF
0.41%9.34%3.20%8.98%-13.98%-1.77%9.46%14.10%-1.74%5.31%
VWOB
Vanguard Emerging Markets Government Bond ETF
2.08%13.49%5.20%10.68%-17.39%-1.80%5.65%14.46%-2.92%8.41%

Correlation

The correlation between VCIT and VWOB is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.


Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.82

Correlation (3Y)
Calculated over the trailing 3-year period

0.84

Correlation (5Y)
Calculated over the trailing 5-year period

0.77

Correlation (10Y)
Calculated over the trailing 10-year period

0.67

Correlation (All Time)
Calculated using the full available price history since Jun 4, 2013

0.59

Over the past year, VCIT and VWOB have become more correlated (0.82) than their long-term average of 0.59, meaning their price movements have been converging.

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Return for Risk

VCIT vs. VWOB — Risk / Return Rank

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

VCIT
VCIT Risk / Return Rank: 4343
Overall Rank
VCIT Sharpe Ratio Rank: 4444
Sharpe Ratio Rank
VCIT Sortino Ratio Rank: 4545
Sortino Ratio Rank
VCIT Omega Ratio Rank: 4242
Omega Ratio Rank
VCIT Calmar Ratio Rank: 4343
Calmar Ratio Rank
VCIT Martin Ratio Rank: 4343
Martin Ratio Rank

VWOB
VWOB Risk / Return Rank: 6666
Overall Rank
VWOB Sharpe Ratio Rank: 6969
Sharpe Ratio Rank
VWOB Sortino Ratio Rank: 7474
Sortino Ratio Rank
VWOB Omega Ratio Rank: 7474
Omega Ratio Rank
VWOB Calmar Ratio Rank: 5252
Calmar Ratio Rank
VWOB Martin Ratio Rank: 6262
Martin Ratio Rank
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.

VCIT vs. VWOB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and Vanguard Emerging Markets Government Bond ETF (VWOB). 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.


VCITVWOBDifference
Sharpe ratioReturn per unit of total volatility

-0.59

Sortino ratioReturn per unit of downside risk

-0.83

Omega ratioGain probability vs. loss probability

1.24

1.38

-0.13

Calmar ratioReturn relative to maximum drawdown

1.88

2.29

-0.41

Martin ratioReturn relative to average drawdown

6.07

9.66

-3.59

VCIT vs. VWOB - Sharpe Ratio Comparison

The current VCIT Sharpe Ratio is 1.36, which is lower than the VWOB Sharpe Ratio of 1.96. The chart below compares the historical Sharpe Ratios of VCIT and VWOB, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.


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Drawdowns

VCIT vs. VWOB - Drawdown Comparison

The maximum VCIT drawdown since its inception was -20.56%, smaller than the maximum VWOB drawdown of -26.98%. Use the drawdown chart below to compare losses from any high point for VCIT and VWOB.


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Drawdown Indicators


VCITVWOBDifference

Max Drawdown

Largest peak-to-trough decline

-20.56%

-26.98%

+6.42%

Max Drawdown (1Y)

Largest decline over 1 year

-2.96%

-4.48%

+1.52%

Max Drawdown (3Y)

Largest decline over 3 years

-6.11%

-7.71%

+1.60%

Max Drawdown (5Y)

Largest decline over 5 years

-20.56%

-26.98%

+6.42%

Max Drawdown (10Y)

Largest decline over 10 years

-20.56%

-26.98%

+6.42%

Current Drawdown

Current decline from peak

-1.13%

0.00%

-1.13%

Average Drawdown

Average peak-to-trough decline

-3.16%

-4.79%

+1.63%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.92%

1.06%

-0.14%

Volatility

VCIT vs. VWOB - Volatility Comparison

The current volatility for Vanguard Intermediate-Term Corporate Bond ETF (VCIT) is 1.48%, while Vanguard Emerging Markets Government Bond ETF (VWOB) has a volatility of 1.90%. This indicates that VCIT experiences smaller price fluctuations and is considered to be less risky than VWOB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


VCITVWOBDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.48%

1.90%

-0.42%

Volatility (6M)

Calculated over the trailing 6-month period

3.15%

4.31%

-1.16%

Volatility (1Y)

Calculated over the trailing 1-year period

4.10%

5.25%

-1.15%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

6.62%

9.19%

-2.57%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

6.28%

9.35%

-3.07%

VCIT vs. VWOB - Expense Ratio Comparison

VCIT has a 0.03% expense ratio, which is lower than VWOB's 0.15% 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

VCIT vs. VWOB - Dividend Comparison

VCIT's dividend yield for the trailing twelve months is around 4.79%, less than VWOB's 5.82% yield.


PositionTTM20252024202320222021202020192018201720162015
VCIT
Vanguard Intermediate-Term Corporate Bond ETF
4.79%4.62%4.43%3.72%3.03%2.87%2.78%3.37%3.61%3.21%3.29%3.34%
VWOB
Vanguard Emerging Markets Government Bond ETF
5.82%5.92%6.08%5.50%5.30%4.04%4.18%4.58%4.52%4.61%4.71%4.93%

Frequently Asked Questions


VCIT and VWOB have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VWOB has higher volatility (1.90%) compared to VCIT (1.48%). In terms of maximum drawdown, VCIT dropped -20.56% vs VWOB's -26.98%.

On 10-year performance, VWOB leads with 3.62% vs 2.93% for VCIT. On fees, VCIT is cheaper at 0.03% per year. On volatility, VCIT has been the lower-risk option at 1.48%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VWOB has performed better with a 3.62% return vs 2.93%. 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 0.15% for VWOB.

VWOB has the higher dividend yield at 5.82%, compared with 4.79% for VCIT.

VCIT is categorized as Corporate Bonds, while VWOB is Emerging Markets Bonds. VCIT tracks Bloomberg U.S. 5-10 Year Corporate Bond Index, while VWOB tracks Bloomberg USD Emerging Markets Government RIC Capped Index. Their fees differ too: 0.03% for VCIT and 0.15% for VWOB.

VWOB currently has the higher Sharpe Ratio (1.96 vs 1.36), 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.

Portfolio Optimizer

Find the right allocation for VCIT and VWOB

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