VCLT vs. IGSB
VCLT (Vanguard Long-Term Corporate Bond ETF) and IGSB (iShares 1-5 Year Investment Grade Corporate Bond ETF) are both Corporate Bonds funds - VCLT tracks the Bloomberg U.S. 10+ Year Corporate Bond Index while IGSB tracks the ICE BofA 1-5 Year US Corporate Index. Both are passively managed. Over the past 10 years, VCLT returned 2.26%/yr vs 2.71%/yr for IGSB. A 0.55 correlation means they provide meaningful diversification when combined. VCLT charges 0.03%/yr vs 0.04%/yr for IGSB.
Performance
VCLT vs. IGSB - Performance Comparison
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Returns By Period
In the year-to-date period, VCLT achieves a 1.50% return, which is significantly higher than IGSB's 0.75% return. Over the past 10 years, VCLT has underperformed IGSB with an annualized return of 2.26%, while IGSB has yielded a comparatively higher 2.71% annualized return.
VCLT
- 1D
- 0.23%
- 1M
- 1.54%
- YTD
- 1.50%
- 6M
- 1.27%
- 1Y
- 6.41%
- 3Y*
- 4.16%
- 5Y*
- -2.17%
- 10Y*
- 2.26%
IGSB
- 1D
- 0.10%
- 1M
- 0.31%
- YTD
- 0.75%
- 6M
- 0.96%
- 1Y
- 4.10%
- 3Y*
- 5.72%
- 5Y*
- 2.47%
- 10Y*
- 2.71%
VCLT vs. IGSB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCLT Vanguard Long-Term Corporate Bond ETF | 1.50% | 7.18% | -1.90% | 11.17% | -25.50% | -1.73% | 13.27% | 23.89% | -7.04% | 11.70% |
IGSB iShares 1-5 Year Investment Grade Corporate Bond ETF | 0.75% | 6.96% | 4.97% | 6.40% | -5.63% | -0.56% | 5.37% | 7.11% | 1.25% | 1.27% |
Correlation
The correlation between VCLT and IGSB is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.79 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.80 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.78 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.71 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.55 |
Over the past year, VCLT and IGSB have become more correlated (0.79) than their long-term average of 0.55, meaning their price movements have been converging.
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Return for Risk
VCLT vs. IGSB — Risk / Return Rank
VCLT
IGSB
VCLT vs. IGSB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Corporate Bond ETF (VCLT) and iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB). 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.
| VCLT | IGSB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.29 | ||
| Sortino ratioReturn per unit of downside risk | -2.02 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.42 | -0.27 |
| Calmar ratioReturn relative to maximum drawdown | 1.23 | 2.82 | -1.60 |
| Martin ratioReturn relative to average drawdown | 2.96 | 11.30 | -8.34 |
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Drawdowns
VCLT vs. IGSB - Drawdown Comparison
The maximum VCLT drawdown since its inception was -34.31%, which is greater than IGSB's maximum drawdown of -13.38%. Use the drawdown chart below to compare losses from any high point for VCLT and IGSB.
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Drawdown Indicators
| VCLT | IGSB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.31% | -13.38% | -20.93% |
Max Drawdown (1Y)Largest decline over 1 year | -5.25% | -1.46% | -3.79% |
Max Drawdown (3Y)Largest decline over 3 years | -13.03% | -1.46% | -11.57% |
Max Drawdown (5Y)Largest decline over 5 years | -34.31% | -9.46% | -24.85% |
Max Drawdown (10Y)Largest decline over 10 years | -34.31% | -13.38% | -20.93% |
Current DrawdownCurrent decline from peak | -13.92% | -0.28% | -13.64% |
Average DrawdownAverage peak-to-trough decline | -8.17% | -0.85% | -7.32% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.17% | 0.36% | +1.81% |
Volatility
VCLT vs. IGSB - Volatility Comparison
Vanguard Long-Term Corporate Bond ETF (VCLT) has a higher volatility of 1.90% compared to iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) at 0.69%. This indicates that VCLT's price experiences larger fluctuations and is considered to be riskier than IGSB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCLT | IGSB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.90% | 0.69% | +1.21% |
Volatility (6M)Calculated over the trailing 6-month period | 5.83% | 1.50% | +4.33% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.83% | 1.95% | +5.88% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.76% | 2.94% | +9.82% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.85% | 3.47% | +9.38% |
VCLT vs. IGSB - Expense Ratio Comparison
VCLT has a 0.03% expense ratio, which is lower than IGSB's 0.04% 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. IGSB - Dividend Comparison
VCLT's dividend yield for the trailing twelve months is around 5.52%, more than IGSB's 4.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IGSB iShares 1-5 Year Investment Grade Corporate Bond ETF | 4.58% | 4.44% | 4.02% | 3.26% | 2.07% | 1.82% | 2.36% | 3.06% | 2.46% | 1.65% | 1.45% | 1.18% |
VCLT Vanguard Long-Term Corporate Bond ETF | 5.52% | 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 IGSB have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCLT has higher volatility (1.90%) compared to IGSB (0.69%). In terms of maximum drawdown, VCLT dropped -34.31% vs IGSB's -13.38%.
On 10-year performance, IGSB leads with 2.71% vs 2.26% for VCLT. On fees, VCLT is cheaper at 0.03% per year. On volatility, IGSB has been the lower-risk option at 0.69%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IGSB has performed better with a 2.71% return vs 2.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCLT is cheaper with a 0.03% expense ratio, compared with 0.04% for IGSB.
VCLT has the higher dividend yield at 5.52%, compared with 4.58% for IGSB.
VCLT tracks Bloomberg U.S. 10+ Year Corporate Bond Index, while IGSB tracks ICE BofA 1-5 Year US Corporate Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VCLT and 0.04% for IGSB.
IGSB currently has the higher Sharpe Ratio (2.11 vs 0.82), 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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