VCLT vs. BND
VCLT (Vanguard Long-Term Corporate Bond ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VCLT is a Corporate Bonds fund tracking the Barclays U.S. 10+ Year Corporate Index, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Over the past 10 years, VCLT returned 2.31%/yr vs 1.58%/yr for BND. Their correlation of 0.85 suggests significant overlap in exposure. VCLT charges 0.04%/yr vs 0.03%/yr for BND.
Performance
VCLT vs. BND - Performance Comparison
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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%
VCLT vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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
VCLT
BND
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.
| VCLT | BND | Difference | |
|---|---|---|---|
| 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 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VCLT | BND | Difference | |
|---|---|---|---|
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
| VCLT | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest 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 DrawdownCurrent decline from peak | -14.36% | -2.37% | -11.99% |
Average DrawdownAverage peak-to-trough decline | -8.16% | -3.06% | -5.10% |
Ulcer IndexDepth 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
| VCLT | BND | Difference | |
|---|---|---|---|
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.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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.
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