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VCLT vs. QQQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VCLT vs. QQQ

Last updated Jun 9, 2026

VCLT (Vanguard Long-Term Corporate Bond ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - VCLT is a Corporate Bonds fund tracking the Barclays U.S. 10+ Year Corporate Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, VCLT returned 2.14%/yr vs 21.59%/yr for QQQ. At a 0.04 correlation, their price movements are largely independent. VCLT charges 0.04%/yr vs 0.18%/yr for QQQ.

Performance

VCLT vs. QQQ - Performance Comparison

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

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Returns By Period

In the year-to-date period, VCLT achieves a 0.19% return, which is significantly lower than QQQ's 16.71% return. Over the past 10 years, VCLT has underperformed QQQ with an annualized return of 2.14%, while QQQ has yielded a comparatively higher 21.59% 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%

QQQ

1D
1.56%
1M
0.68%
YTD
16.71%
6M
15.00%
1Y
35.78%
3Y*
27.15%
5Y*
16.98%
10Y*
21.59%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VCLT vs. QQQ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
QQQ
Invesco QQQ ETF		16.71%20.77%25.58%54.86%-32.58%27.42%48.62%38.96%-0.13%32.66%

Correlation

The correlation between VCLT and QQQ is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.32

Correlation (3Y)
Calculated over the trailing 3-year period

0.27

Correlation (5Y)
Calculated over the trailing 5-year period

0.28

Correlation (10Y)
Calculated over the trailing 10-year period

0.22

Correlation (All Time)
Calculated using the full available price history since Nov 24, 2009

0.04

Over the past year, VCLT and QQQ have become more correlated (0.32) than their long-term average of 0.04, meaning their price movements have been converging.

Compare stocks, funds, or ETFs

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Vanguard Long-Term Corporate Bond ETF

Invesco QQQ ETF

Often compared with VCLT:
VCLT vs. VCITVCLT vs. VGLTVCLT vs. LQDVCLT vs. IGLBVCLT vs. SPLBVCLT vs. SPYVCLT vs. HYG
Often compared with QQQ:
QQQ vs. SPYQQQ vs. VOOQQQ vs. VGTQQQ vs. TQQQQQQ vs. SMHQQQ vs. QQQMQQQ vs. QQQI

Return for Risk

VCLT vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VCLT
VCLT Risk / Return Rank: 2626
Overall Rank
VCLT Sharpe Ratio Rank: 2626
Sharpe Ratio Rank
VCLT Sortino Ratio Rank: 2525
Sortino Ratio Rank
VCLT Omega Ratio Rank: 2424
Omega Ratio Rank
VCLT Calmar Ratio Rank: 2929
Calmar Ratio Rank
VCLT Martin Ratio Rank: 2525
Martin Ratio Rank
QQQ
QQQ Risk / Return Rank: 6969
Overall Rank
QQQ Sharpe Ratio Rank: 7474
Sharpe Ratio Rank
QQQ Sortino Ratio Rank: 6767
Sortino Ratio Rank
QQQ Omega Ratio Rank: 7070
Omega Ratio Rank
QQQ Calmar Ratio Rank: 6666
Calmar Ratio Rank
QQQ Martin Ratio Rank: 6868
Martin Ratio Rank
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. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Corporate Bond ETF (VCLT) and Invesco QQQ ETF (QQQ). 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.

VCLTQQQDifference
Sharpe ratioReturn per unit of total volatility
0.86
2.15

-1.29

Sortino ratioReturn per unit of downside risk
1.26
2.77

-1.52

Omega ratioGain probability vs. loss probability

1.15

1.38

-0.23

Calmar ratioReturn relative to maximum drawdown

1.29

3.00

-1.72

Martin ratioReturn relative to average drawdown

3.15

11.43

-8.28

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. QQQ - Sharpe Ratio Comparison

The current VCLT Sharpe Ratio is 0.86, which is lower than the QQQ Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of VCLT and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

VCLTQQQDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.86

2.15

-1.29

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.17

0.76

-0.93

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.17

0.97

-0.80

Sharpe Ratio (All Time)

Calculated using the full available price history

0.39

0.40

-0.02

Drawdowns

VCLT vs. QQQ - Drawdown Comparison

The maximum VCLT drawdown since its inception was -34.31%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for VCLT and QQQ.

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Drawdown Indicators

VCLTQQQDifference

Max Drawdown

Largest peak-to-trough decline

-34.31%

-82.97%

+48.66%

Max Drawdown (1Y)

Largest decline over 1 year

-5.25%

-11.96%

+6.71%

Max Drawdown (3Y)

Largest decline over 3 years

-13.03%

-22.77%

+9.74%

Max Drawdown (5Y)

Largest decline over 5 years

-34.31%

-35.12%

+0.81%

Max Drawdown (10Y)

Largest decline over 10 years

-34.31%

-35.12%

+0.81%

Current Drawdown

Current decline from peak

-15.03%

-4.03%

-11.00%

Average Drawdown

Average peak-to-trough decline

-8.16%

-32.77%

+24.61%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.14%

3.14%

-1.00%

Volatility

VCLT vs. QQQ - Volatility Comparison

The current volatility for Vanguard Long-Term Corporate Bond ETF (VCLT) is 2.27%, while Invesco QQQ ETF (QQQ) has a volatility of 6.84%. This indicates that VCLT experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VCLTQQQDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.27%

6.84%

-4.57%

Volatility (6M)

Calculated over the trailing 6-month period

5.80%

13.20%

-7.40%

Volatility (1Y)

Calculated over the trailing 1-year period

7.88%

16.74%

-8.86%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

12.77%

22.49%

-9.72%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

12.85%

22.36%

-9.51%

VCLT vs. QQQ - Expense Ratio Comparison

VCLT has a 0.04% expense ratio, which is lower than QQQ's 0.18% 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. QQQ - Dividend Comparison

VCLT's dividend yield for the trailing twelve months is around 5.59%, more than QQQ's 0.39% yield.

PositionTTM20252024202320222021202020192018201720162015
QQQ
Invesco QQQ ETF		0.39%0.45%0.56%0.62%0.80%0.43%0.55%0.74%0.91%0.84%1.06%0.99%
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 QQQ have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

QQQ has higher volatility (6.84%) compared to VCLT (2.27%). In terms of maximum drawdown, VCLT dropped -34.31% vs QQQ's -82.97%.

On 10-year performance, QQQ leads with 21.59% vs 2.14% for VCLT. On fees, VCLT is cheaper at 0.04% per year. On volatility, VCLT has been the lower-risk option at 2.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, QQQ has performed better with a 21.59% return vs 2.14%. 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 0.18% for QQQ.

VCLT has the higher dividend yield at 5.59%, compared with 0.39% for QQQ.

VCLT is categorized as Corporate Bonds, while QQQ is Nasdaq-100. VCLT tracks Barclays U.S. 10+ Year Corporate Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.04% for VCLT and 0.18% for QQQ.

QQQ currently has the higher Sharpe Ratio (2.15 vs 0.86), 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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