VCITX vs. LQD
VCITX (Vanguard California Long-Term Tax-Exempt Fund Investor Shares) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both funds - VCITX is a Municipal Bonds fund managed by Vanguard, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Over the past 10 years, VCITX returned 2.37%/yr vs 2.16%/yr for LQD. At a 0.45 correlation, their price movements are largely independent. VCITX charges 0.17%/yr vs 0.15%/yr for LQD.
Performance
VCITX vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, VCITX achieves a 2.16% return, which is significantly higher than LQD's -0.27% return. Over the past 10 years, VCITX has outperformed LQD with an annualized return of 2.37%, while LQD has yielded a comparatively lower 2.16% annualized return.
VCITX
- 1D
- 0.00%
- 1M
- 0.56%
- 6M
- 1.63%
- YTD
- 2.16%
- 1Y
- 8.17%
- 3Y*
- 4.88%
- 5Y*
- 1.24%
- 10Y*
- 2.37%
LQD
- 1D
- -0.23%
- 1M
- -1.08%
- 6M
- -0.67%
- YTD
- -0.27%
- 1Y
- 4.00%
- 3Y*
- 4.82%
- 5Y*
- -0.63%
- 10Y*
- 2.16%
VCITX vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCITX Vanguard California Long-Term Tax-Exempt Fund Investor Shares | 2.16% | 4.90% | 2.66% | 7.51% | -10.06% | 1.46% | 5.60% | 8.81% | 0.67% | 6.82% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | -0.27% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Correlation
The correlation between VCITX and LQD is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.45 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.54 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.47 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.44 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2002 | 0.45 |
The correlation between VCITX and LQD shifts across timeframes, from 0.44 (10 years) to 0.54 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VCITX vs. LQD — Risk / Return Rank
VCITX
LQD
VCITX vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard California Long-Term Tax-Exempt Fund Investor Shares (VCITX) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD). 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.
| VCITX | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.92 | ||
| Sortino ratioReturn per unit of downside risk | +3.04 | ||
| Omega ratioGain probability vs. loss probability | 1.62 | 1.11 | +0.50 |
| Calmar ratioReturn relative to maximum drawdown | 2.34 | 1.01 | +1.32 |
| Martin ratioReturn relative to average drawdown | 8.40 | 2.81 | +5.60 |
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Drawdowns
VCITX vs. LQD - Drawdown Comparison
The maximum VCITX drawdown since its inception was -22.71%, smaller than the maximum LQD drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for VCITX and LQD.
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Drawdown Indicators
| VCITX | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.71% | -24.95% | +2.24% |
Max Drawdown (1Y)Largest decline over 1 year | -3.43% | -3.34% | -0.09% |
Max Drawdown (3Y)Largest decline over 3 years | -6.57% | -8.43% | +1.86% |
Max Drawdown (5Y)Largest decline over 5 years | -15.79% | -24.95% | +9.16% |
Max Drawdown (10Y)Largest decline over 10 years | -15.79% | -24.95% | +9.16% |
Current DrawdownCurrent decline from peak | -0.52% | -4.41% | +3.89% |
Average DrawdownAverage peak-to-trough decline | -2.57% | -3.99% | +1.42% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.96% | 1.21% | -0.25% |
Volatility
VCITX vs. LQD - Volatility Comparison
The current volatility for Vanguard California Long-Term Tax-Exempt Fund Investor Shares (VCITX) is 0.70%, while iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a volatility of 1.56%. This indicates that VCITX experiences smaller price fluctuations and is considered to be less risky than LQD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCITX | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.70% | 1.56% | -0.86% |
Volatility (6M)Calculated over the trailing 6-month period | 2.44% | 4.07% | -1.63% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.13% | 5.30% | -2.17% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.57% | 8.65% | -4.08% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.55% | 8.69% | -4.14% |
VCITX vs. LQD - Expense Ratio Comparison
VCITX has a 0.17% expense ratio, which is higher than LQD's 0.15% 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
VCITX vs. LQD - Dividend Comparison
VCITX's dividend yield for the trailing twelve months is around 3.55%, less than LQD's 4.60% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.60% | 4.48% | 4.45% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% |
VCITX Vanguard California Long-Term Tax-Exempt Fund Investor Shares | 3.55% | 4.34% | 3.85% | 2.99% | 2.66% | 2.56% | 3.21% | 3.16% | 3.32% | 3.22% | 3.45% | 3.50% |
Frequently Asked Questions
VCITX and LQD have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LQD has higher volatility (1.56%) compared to VCITX (0.70%). In terms of maximum drawdown, VCITX dropped -22.71% vs LQD's -24.95%.
VCITX currently has the higher Sharpe Ratio (2.56 vs 0.64), 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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