VCLT vs. IBDR
VCLT (Vanguard Long-Term Corporate Bond ETF) and IBDR (iShares iBonds Dec 2026 Term Corporate ETF) are both Corporate Bonds funds - VCLT tracks the Barclays U.S. 10+ Year Corporate Index while IBDR tracks the Barclays December 2026 Maturity Corporate Index. Both are passively managed. Over the past 5 years, VCLT returned -1.78%/yr vs 1.50%/yr for IBDR. A 0.63 correlation means they provide meaningful diversification when combined. VCLT charges 0.04%/yr vs 0.10%/yr for IBDR.
Performance
VCLT vs. IBDR - Performance Comparison
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Returns By Period
In the year-to-date period, VCLT achieves a 0.99% return, which is significantly lower than IBDR's 1.44% 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%
IBDR
- 1D
- -0.04%
- 1M
- 0.25%
- YTD
- 1.44%
- 6M
- 1.80%
- 1Y
- 4.38%
- 3Y*
- 5.07%
- 5Y*
- 1.50%
- 10Y*
- —
VCLT vs. IBDR - 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% |
IBDR iShares iBonds Dec 2026 Term Corporate ETF | 1.44% | 4.99% | 4.98% | 5.96% | -8.28% | -1.79% | 8.88% | 14.81% | -2.80% | 5.96% |
Correlation
The correlation between VCLT and IBDR is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.11 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.52 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.63 |
Correlation (All Time) Calculated using the full available price history since Sep 20, 2016 | 0.63 |
Over the past year, the correlation between VCLT and IBDR has dropped to 0.11 - well below their long-term average of 0.63, suggesting their price drivers have been diverging.
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Return for Risk
VCLT vs. IBDR — Risk / Return Rank
VCLT
IBDR
VCLT vs. IBDR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Corporate Bond ETF (VCLT) and iShares iBonds Dec 2026 Term Corporate ETF (IBDR). 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 | IBDR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -5.95 | ||
| Sortino ratioReturn per unit of downside risk | -13.16 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 3.40 | -2.23 |
| Calmar ratioReturn relative to maximum drawdown | 1.47 | 53.28 | -51.81 |
| Martin ratioReturn relative to average drawdown | 3.62 | 185.24 | -181.61 |
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 | IBDR | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.97 | 6.93 | -5.95 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.14 | 0.44 | -0.58 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.18 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.39 | 0.61 | -0.22 |
Drawdowns
VCLT vs. IBDR - Drawdown Comparison
The maximum VCLT drawdown since its inception was -34.31%, which is greater than IBDR's maximum drawdown of -16.06%. Use the drawdown chart below to compare losses from any high point for VCLT and IBDR.
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Drawdown Indicators
| VCLT | IBDR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.31% | -16.06% | -18.25% |
Max Drawdown (1Y)Largest decline over 1 year | -5.25% | -0.08% | -5.17% |
Max Drawdown (3Y)Largest decline over 3 years | -13.03% | -1.08% | -11.95% |
Max Drawdown (5Y)Largest decline over 5 years | -34.31% | -13.13% | -21.18% |
Max Drawdown (10Y)Largest decline over 10 years | -34.31% | — | — |
Current DrawdownCurrent decline from peak | -14.36% | -0.04% | -14.32% |
Average DrawdownAverage peak-to-trough decline | -8.16% | -2.84% | -5.32% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.13% | 0.02% | +2.11% |
Volatility
VCLT vs. IBDR - Volatility Comparison
Vanguard Long-Term Corporate Bond ETF (VCLT) has a higher volatility of 2.31% compared to iShares iBonds Dec 2026 Term Corporate ETF (IBDR) at 0.15%. This indicates that VCLT's price experiences larger fluctuations and is considered to be riskier than IBDR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCLT | IBDR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.31% | 0.15% | +2.16% |
Volatility (6M)Calculated over the trailing 6-month period | 5.75% | 0.34% | +5.41% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.92% | 0.64% | +7.28% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.78% | 3.40% | +9.38% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.84% | 4.86% | +7.98% |
VCLT vs. IBDR - Expense Ratio Comparison
VCLT has a 0.04% expense ratio, which is lower than IBDR's 0.10% 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
VCLT vs. IBDR - Dividend Comparison
VCLT's dividend yield for the trailing twelve months is around 5.55%, more than IBDR's 4.13% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBDR iShares iBonds Dec 2026 Term Corporate ETF | 4.13% | 4.20% | 4.13% | 3.41% | 2.44% | 2.11% | 2.61% | 3.25% | 3.56% | 3.22% | 0.86% | 0.00% |
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
VCLT and IBDR have a correlation of 0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCLT has higher volatility (2.31%) compared to IBDR (0.15%). In terms of maximum drawdown, VCLT dropped -34.31% vs IBDR's -16.06%.
On 5-year performance, IBDR leads with 1.50% vs -1.78% for VCLT. On fees, VCLT is cheaper at 0.04% per year. On volatility, IBDR has been the lower-risk option at 0.15%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, IBDR has performed better with a 1.50% return vs -1.78%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCLT is cheaper with a 0.04% expense ratio, compared with 0.10% for IBDR.
VCLT has the higher dividend yield at 5.55%, compared with 4.13% for IBDR.
VCLT tracks Barclays U.S. 10+ Year Corporate Index, while IBDR tracks Barclays December 2026 Maturity Corporate Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VCLT and 0.10% for IBDR.
IBDR currently has the higher Sharpe Ratio (6.93 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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