VCLT vs. IEF
VCLT (Vanguard Long-Term Corporate Bond ETF) and IEF (iShares 7-10 Year Treasury Bond ETF) are both exchange-traded funds - VCLT is a Corporate Bonds fund tracking the Barclays U.S. 10+ Year Corporate Index, while IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index. Both are passively managed. Over the past 10 years, VCLT returned 2.14%/yr vs 0.53%/yr for IEF. A 0.79 correlation means they provide meaningful diversification when combined. VCLT charges 0.04%/yr vs 0.15%/yr for IEF.
Performance
VCLT vs. IEF - Performance Comparison
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Returns By Period
In the year-to-date period, VCLT achieves a 0.19% return, which is significantly higher than IEF's -1.16% return. Over the past 10 years, VCLT has outperformed IEF with an annualized return of 2.14%, while IEF has yielded a comparatively lower 0.53% annualized return.
VCLT
- 1D
- -0.30%
- 1M
- -0.62%
- YTD
- 0.19%
- 6M
- -0.19%
- 1Y
- 6.74%
- 3Y*
- 4.19%
- 5Y*
- -2.13%
- 10Y*
- 2.14%
IEF
- 1D
- -0.11%
- 1M
- -1.19%
- YTD
- -1.16%
- 6M
- -0.96%
- 1Y
- 3.91%
- 3Y*
- 2.43%
- 5Y*
- -1.34%
- 10Y*
- 0.53%
VCLT vs. IEF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCLT Vanguard Long-Term Corporate Bond ETF | 0.19% | 7.18% | -1.90% | 11.17% | -25.50% | -1.73% | 13.27% | 23.89% | -7.04% | 11.70% |
IEF iShares 7-10 Year Treasury Bond ETF | -1.16% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
Correlation
The correlation between VCLT and IEF is 0.86, 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 | 0.86 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.89 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.86 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.79 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.79 |
The correlation between VCLT and IEF shifts across timeframes, from 0.79 (all time) to 0.89 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VCLT vs. IEF — Risk / Return Rank
VCLT
IEF
VCLT vs. IEF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Corporate Bond ETF (VCLT) and iShares 7-10 Year Treasury Bond ETF (IEF). 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 | IEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.02 | ||
| Sortino ratioReturn per unit of downside risk | -0.01 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.14 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 1.29 | 0.96 | +0.33 |
| Martin ratioReturn relative to average drawdown | 3.15 | 2.79 | +0.37 |
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 | IEF | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.86 | 0.84 | +0.02 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.17 | -0.17 | +0.01 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.17 | 0.08 | +0.09 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.39 | 0.50 | -0.11 |
Drawdowns
VCLT vs. IEF - Drawdown Comparison
The maximum VCLT drawdown since its inception was -34.31%, which is greater than IEF's maximum drawdown of -23.93%. Use the drawdown chart below to compare losses from any high point for VCLT and IEF.
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Drawdown Indicators
| VCLT | IEF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.31% | -23.93% | -10.38% |
Max Drawdown (1Y)Largest decline over 1 year | -5.25% | -4.07% | -1.18% |
Max Drawdown (3Y)Largest decline over 3 years | -13.03% | -7.74% | -5.29% |
Max Drawdown (5Y)Largest decline over 5 years | -34.31% | -21.40% | -12.91% |
Max Drawdown (10Y)Largest decline over 10 years | -34.31% | -23.93% | -10.38% |
Current DrawdownCurrent decline from peak | -15.03% | -11.80% | -3.23% |
Average DrawdownAverage peak-to-trough decline | -8.16% | -5.35% | -2.81% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.14% | 1.40% | +0.74% |
Volatility
VCLT vs. IEF - Volatility Comparison
Vanguard Long-Term Corporate Bond ETF (VCLT) has a higher volatility of 2.27% compared to iShares 7-10 Year Treasury Bond ETF (IEF) at 1.51%. This indicates that VCLT's price experiences larger fluctuations and is considered to be riskier than IEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCLT | IEF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.27% | 1.51% | +0.76% |
Volatility (6M)Calculated over the trailing 6-month period | 5.80% | 3.36% | +2.44% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.88% | 4.69% | +3.19% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.77% | 7.71% | +5.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.85% | 6.63% | +6.22% |
VCLT vs. IEF - Expense Ratio Comparison
VCLT has a 0.04% expense ratio, which is lower than IEF'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
VCLT vs. IEF - Dividend Comparison
VCLT's dividend yield for the trailing twelve months is around 5.59%, more than IEF's 3.92% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.92% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
VCLT Vanguard Long-Term Corporate Bond ETF | 5.59% | 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 IEF have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCLT has higher volatility (2.27%) compared to IEF (1.51%). In terms of maximum drawdown, VCLT dropped -34.31% vs IEF's -23.93%.
On 10-year performance, VCLT leads with 2.14% vs 0.53% for IEF. On fees, VCLT is cheaper at 0.04% per year. On volatility, IEF has been the lower-risk option at 1.51%. 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 2.14% return vs 0.53%. 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 0.15% for IEF.
VCLT has the higher dividend yield at 5.59%, compared with 3.92% for IEF.
VCLT is categorized as Corporate Bonds, while IEF is Government Bonds. VCLT tracks Barclays U.S. 10+ Year Corporate Index, while IEF tracks ICE U.S. Treasury 7-10 Year Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VCLT and 0.15% for IEF.
VCLT currently has the higher Sharpe Ratio (0.86 vs 0.84), 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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