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VCLT vs. BND
Performance
Return for Risk
Drawdowns
Volatility
Dividends

Performance

VCLT vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Long-Term Corporate Bond ETF (VCLT) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VCLT achieves a 0.99% return, which is significantly higher than BND's 0.27% return. Over the past 10 years, VCLT has outperformed BND with an annualized return of 2.31%, while BND has yielded a comparatively lower 1.58% annualized return.


VCLT

1D
-0.35%
1M
1.49%
YTD
0.99%
6M
-0.04%
1Y
7.69%
3Y*
4.34%
5Y*
-1.78%
10Y*
2.31%

BND

1D
-0.19%
1M
0.27%
YTD
0.27%
6M
0.12%
1Y
5.11%
3Y*
3.96%
5Y*
0.09%
10Y*
1.58%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VCLT vs. BND - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
VCLT
Vanguard Long-Term Corporate Bond ETF
0.99%7.18%-1.90%11.17%-25.50%-1.73%13.27%23.89%-7.04%11.70%
BND
Vanguard Total Bond Market ETF
0.27%7.08%1.38%5.65%-13.11%-1.86%7.71%8.84%-0.12%3.57%

Correlation

The correlation between VCLT and BND is 0.93, 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

0.93

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

0.94

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

0.92

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

0.88

Correlation (All Time)
Calculated using the full available price history since Nov 24, 2009

0.85

The correlation between VCLT and BND has been stable across timeframes, ranging from 0.85 to 0.94 - a consistent structural relationship.

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Return for Risk

VCLT vs. BND — Risk / Return Rank

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

VCLT
VCLT Risk / Return Rank: 2727
Overall Rank
VCLT Sharpe Ratio Rank: 2626
Sharpe Ratio Rank
VCLT Sortino Ratio Rank: 2626
Sortino Ratio Rank
VCLT Omega Ratio Rank: 2525
Omega Ratio Rank
VCLT Calmar Ratio Rank: 3030
Calmar Ratio Rank
VCLT Martin Ratio Rank: 2626
Martin Ratio Rank

BND
BND Risk / Return Rank: 3737
Overall Rank
BND Sharpe Ratio Rank: 3737
Sharpe Ratio Rank
BND Sortino Ratio Rank: 3939
Sortino Ratio Rank
BND Omega Ratio Rank: 3535
Omega Ratio Rank
BND Calmar Ratio Rank: 3838
Calmar Ratio Rank
BND Martin Ratio Rank: 3636
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.

VCLT vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Corporate Bond ETF (VCLT) and Vanguard Total Bond Market ETF (BND). 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.


VCLTBNDDifference
Sharpe ratioReturn per unit of total volatility

-0.38

Sortino ratioReturn per unit of downside risk

-0.61

Omega ratioGain probability vs. loss probability

1.17

1.24

-0.07

Calmar ratioReturn relative to maximum drawdown

1.47

1.92

-0.44

Martin ratioReturn relative to average drawdown

3.62

5.80

-2.18

VCLT vs. BND - Sharpe Ratio Comparison

The current VCLT Sharpe Ratio is 0.97, which is comparable to the BND Sharpe Ratio of 1.36. The chart below compares the historical Sharpe Ratios of VCLT and BND, 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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Sharpe Ratios by Period


VCLTBNDDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.97

1.36

-0.38

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.14

0.01

-0.15

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.18

0.29

-0.11

Sharpe Ratio (All Time)

Calculated using the full available price history

0.39

0.59

-0.19

Drawdowns

VCLT vs. BND - Drawdown Comparison

The maximum VCLT drawdown since its inception was -34.31%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VCLT and BND.


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Drawdown Indicators


VCLTBNDDifference

Max Drawdown

Largest peak-to-trough decline

-34.31%

-18.58%

-15.73%

Max Drawdown (1Y)

Largest decline over 1 year

-5.25%

-2.68%

-2.57%

Max Drawdown (3Y)

Largest decline over 3 years

-13.03%

-5.92%

-7.11%

Max Drawdown (5Y)

Largest decline over 5 years

-34.31%

-17.91%

-16.40%

Max Drawdown (10Y)

Largest decline over 10 years

-34.31%

-18.58%

-15.73%

Current Drawdown

Current decline from peak

-14.36%

-2.37%

-11.99%

Average Drawdown

Average peak-to-trough decline

-8.16%

-3.06%

-5.10%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.13%

0.88%

+1.25%

Volatility

VCLT vs. BND - Volatility Comparison

Vanguard Long-Term Corporate Bond ETF (VCLT) has a higher volatility of 2.31% compared to Vanguard Total Bond Market ETF (BND) at 1.23%. This indicates that VCLT's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


VCLTBNDDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.31%

1.23%

+1.08%

Volatility (6M)

Calculated over the trailing 6-month period

5.75%

2.66%

+3.09%

Volatility (1Y)

Calculated over the trailing 1-year period

7.92%

3.78%

+4.14%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

12.78%

6.02%

+6.76%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

12.84%

5.53%

+7.31%

VCLT vs. BND - Expense Ratio Comparison

VCLT has a 0.04% expense ratio, which is higher than BND'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

VCLT vs. BND - Dividend Comparison

VCLT's dividend yield for the trailing twelve months is around 5.55%, more than BND's 3.97% yield.


PositionTTM20252024202320222021202020192018201720162015
BND
Vanguard Total Bond Market ETF
3.97%3.86%3.67%3.09%2.60%2.12%2.38%2.72%2.81%2.54%2.51%2.57%
VCLT
Vanguard Long-Term Corporate Bond ETF
5.55%5.51%5.19%4.67%4.44%3.07%3.16%3.81%4.55%4.01%4.33%4.68%

Frequently Asked Questions


With a correlation of 0.93, VCLT and BND 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.

VCLT has higher volatility (2.31%) compared to BND (1.23%). In terms of maximum drawdown, VCLT dropped -34.31% vs BND's -18.58%.

On 10-year performance, VCLT leads with 2.31% vs 1.58% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, BND has been the lower-risk option at 1.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VCLT has performed better with a 2.31% return vs 1.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

BND is cheaper with a 0.03% expense ratio, compared with 0.04% for VCLT.

VCLT has the higher dividend yield at 5.55%, compared with 3.97% for BND.

VCLT is categorized as Corporate Bonds, while BND is Total Bond Market. VCLT tracks Barclays U.S. 10+ Year Corporate Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. Their fees differ too: 0.04% for VCLT and 0.03% for BND.

BND currently has the higher Sharpe Ratio (1.36 vs 0.97), 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

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