VCLT vs. LQD

Last updated Apr 2, 2026

Compare and contrast key facts about Vanguard Long-Term Corporate Bond ETF (VCLT) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD).

VCLT and LQD are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VCLT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 10+ Year Corporate Index. It was launched on Nov 19, 2009. LQD is a passively managed fund by iShares that tracks the performance of the iBoxx $ Liquid Investment Grade Index. It was launched on Jul 26, 2002. Both VCLT and LQD are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

VCLT vs. LQD - Performance Comparison

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

VCLT vs. LQD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VCLT Vanguard Long-Term Corporate Bond ETF	-0.48%	7.18%	-1.90%	11.17%	-25.50%	-1.73%	13.27%	23.89%	-7.04%	11.70%
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF	-0.27%	7.90%	0.86%	9.40%	-17.92%	-1.84%	10.97%	17.37%	-3.79%	7.06%

Returns By Period

In the year-to-date period, VCLT achieves a -0.48% return, which is significantly lower than LQD's -0.27% return. Over the past 10 years, VCLT has underperformed LQD with an annualized return of 2.47%, while LQD has yielded a comparatively higher 2.63% annualized return.

VCLT

• 1D: 0.16%
• 1M: -2.31%
• YTD: -0.48%
• 6M: -1.46%
• 1Y: 3.64%
• 3Y*: 3.12%
• 5Y*: -1.70%
• 10Y*: 2.47%

LQD

• 1D: 0.11%
• 1M: -1.63%
• YTD: -0.27%
• 6M: -0.34%
• 1Y: 4.61%
• 3Y*: 4.30%
• 5Y*: 0.11%
• 10Y*: 2.63%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VCLT vs. LQD - Expense Ratio Comparison

VCLT has a 0.04% expense ratio, which is lower than LQD'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%.

LQD

iShares iBoxx $ Investment Grade Corporate Bond ETF

VCLT

Vanguard Long-Term Corporate Bond ETF

Return for Risk

VCLT vs. LQD — Risk / Return Rank

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

VCLT

VCLT Risk / Return Rank: 23
VCLT Sharpe Ratio Rank: 21
VCLT Sortino Ratio Rank: 19
VCLT Omega Ratio Rank: 19
VCLT Calmar Ratio Rank: 31
VCLT Martin Ratio Rank: 24

LQD

LQD Risk / Return Rank: 39
LQD Sharpe Ratio Rank: 35
LQD Sortino Ratio Rank: 32
LQD Omega Ratio Rank: 30
LQD Calmar Ratio Rank: 56
LQD Martin Ratio Rank: 42

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. LQD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Corporate Bond ETF (VCLT) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD). 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	LQD	Difference
Sharpe ratio Return per unit of total volatility	0.36	0.70	-0.34
Sortino ratio Return per unit of downside risk	0.54	0.99	-0.45
Omega ratio Gain probability vs. loss probability	1.07	1.13	-0.06
Calmar ratio Return relative to maximum drawdown	0.78	1.48	-0.70
Martin ratio Return relative to average drawdown	1.80	4.06	-2.25
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VCLT vs. LQD - Sharpe Ratio Comparison

The current VCLT Sharpe Ratio is 0.36, which is lower than the LQD Sharpe Ratio of 0.70. The chart below compares the historical Sharpe Ratios of VCLT and LQD, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	VCLT	LQD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.36	0.70	-0.34
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.13	0.01	-0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.19	0.30	-0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.39	0.54	-0.15

Correlation

The correlation between VCLT and LQD is 0.89, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

VCLT vs. LQD - Dividend Comparison

VCLT's dividend yield for the trailing twelve months is around 5.64%, more than LQD's 4.56% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VCLT Vanguard Long-Term Corporate Bond ETF	5.64%	5.51%	5.19%	4.67%	4.44%	3.07%	3.16%	3.81%	4.55%	4.01%	4.33%	4.68%
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF	4.56%	4.48%	4.45%	3.99%	3.30%	2.30%	2.66%	3.29%	3.67%	3.10%	3.34%	3.47%

Drawdowns

VCLT vs. LQD - Drawdown Comparison

The maximum VCLT drawdown since its inception was -34.31%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for VCLT and LQD.

Drawdown Indicators

	VCLT	LQD	Difference
Max Drawdown Largest peak-to-trough decline	-34.31%	-24.95%	-9.36%
Max Drawdown (1Y) Largest decline over 1 year	-5.39%	-3.38%	-2.01%
Max Drawdown (5Y) Largest decline over 5 years	-34.31%	-24.95%	-9.36%
Max Drawdown (10Y) Largest decline over 10 years	-34.31%	-24.95%	-9.36%
Current Drawdown Current decline from peak	-15.60%	-4.42%	-11.18%
Average Drawdown Average peak-to-trough decline	-8.09%	-3.99%	-4.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.33%	1.23%	+1.10%

Volatility

VCLT vs. LQD - Volatility Comparison

Vanguard Long-Term Corporate Bond ETF (VCLT) has a higher volatility of 3.99% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 2.66%. This indicates that VCLT's price experiences larger fluctuations and is considered to be riskier than LQD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCLT	LQD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.99%	2.66%	+1.33%
Volatility (6M) Calculated over the trailing 6-month period	5.62%	3.76%	+1.86%
Volatility (1Y) Calculated over the trailing 1-year period	10.21%	6.60%	+3.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.80%	8.65%	+4.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.84%	8.67%	+4.17%