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VCLT vs. VMFXX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VCLT vs. VMFXX

Last updated Jun 14, 2026

VCLT (Vanguard Long-Term Corporate Bond ETF) and VMFXX (Vanguard Federal Money Market Fund) are both funds - VCLT is a Corporate Bonds fund tracking the Bloomberg U.S. 10+ Year Corporate Bond Index, while VMFXX is a Money Market fund managed by Vanguard. Over the past 5 years, VCLT returned -2.06%/yr vs 2.39%/yr for VMFXX. At a 0.03 correlation, their price movements are largely independent. VCLT charges 0.03%/yr vs 0.11%/yr for VMFXX.

Performance

VCLT vs. VMFXX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Long-Term Corporate Bond ETF (VCLT) and Vanguard Federal Money Market Fund (VMFXX). 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 1.41% return, which is significantly lower than VMFXX's 1.50% return.

VCLT

1D
-0.09%
1M
2.37%
YTD
1.41%
6M
1.82%
1Y
6.87%
3Y*
4.64%
5Y*
-2.06%
10Y*
2.27%

VMFXX

1D
0.00%
1M
0.30%
YTD
1.50%
6M
1.82%
1Y
3.95%
3Y*
3.35%
5Y*
2.39%
10Y*
—
*Multi-year figures are annualized to reflect compound growth (CAGR)

VCLT vs. VMFXX - Yearly Performance Comparison

2026 (YTD)20252024202320222021
VCLT
Vanguard Long-Term Corporate Bond ETF		1.41%7.18%-1.90%11.17%-25.50%5.07%
VMFXX
Vanguard Federal Money Market Fund		1.50%4.24%1.64%4.64%0.00%0.00%

Correlation

The correlation between VCLT and VMFXX is -0.06, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

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

-0.06

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

-0.01

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

0.03

Correlation (All Time)
Calculated using the full available price history since May 25, 2021

0.03

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Vanguard Long-Term Corporate Bond ETF

Vanguard Federal Money Market Fund

Often compared with VCLT:
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Often compared with VMFXX:
VMFXX vs. VUSXXVMFXX vs. SPAXXVMFXX vs. SWVXXVMFXX vs. SGOVVMFXX vs. VMRXXVMFXX vs. BNDVMFXX vs. SNSXX

Return for Risk

VCLT vs. VMFXX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VCLT
VCLT Risk / Return Rank: 2424
Overall Rank
VCLT Sharpe Ratio Rank: 2424
Sharpe Ratio Rank
VCLT Sortino Ratio Rank: 2323
Sortino Ratio Rank
VCLT Omega Ratio Rank: 2222
Omega Ratio Rank
VCLT Calmar Ratio Rank: 2727
Calmar Ratio Rank
VCLT Martin Ratio Rank: 2424
Martin Ratio Rank
VMFXX

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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. VMFXX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Corporate Bond ETF (VCLT) and Vanguard Federal Money Market Fund (VMFXX). 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.

VCLTVMFXXDifference
Sharpe ratioReturn per unit of total volatility
0.75
3.67

-2.92

Sortino ratioReturn per unit of downside risk
1.11

—

—

Omega ratioGain probability vs. loss probability

1.13

—

—

Calmar ratioReturn relative to maximum drawdown

1.13

—

—

Martin ratioReturn relative to average drawdown

2.75

—

—

VCLT vs. VMFXX - Sharpe Ratio Comparison

The current VCLT Sharpe Ratio is 0.75, which is lower than the VMFXX Sharpe Ratio of 3.67. The chart below compares the historical Sharpe Ratios of VCLT and VMFXX, 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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Drawdowns

VCLT vs. VMFXX - Drawdown Comparison

The maximum VCLT drawdown since its inception was -34.31%, which is greater than VMFXX's maximum drawdown of 0.00%. Use the drawdown chart below to compare losses from any high point for VCLT and VMFXX.

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Drawdown Indicators

VCLTVMFXXDifference

Max Drawdown

Largest peak-to-trough decline

-34.31%

0.00%

-34.31%

Max Drawdown (1Y)

Largest decline over 1 year

-5.25%

0.00%

-5.25%

Max Drawdown (3Y)

Largest decline over 3 years

-13.03%

0.00%

-13.03%

Max Drawdown (5Y)

Largest decline over 5 years

-34.31%

0.00%

-34.31%

Max Drawdown (10Y)

Largest decline over 10 years

-34.31%

—

—

Current Drawdown

Current decline from peak

-14.00%

0.00%

-14.00%

Average Drawdown

Average peak-to-trough decline

-8.17%

0.00%

-8.17%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.16%

0.00%

+2.16%

Volatility

VCLT vs. VMFXX - Volatility Comparison

Vanguard Long-Term Corporate Bond ETF (VCLT) has a higher volatility of 2.48% compared to Vanguard Federal Money Market Fund (VMFXX) at 0.30%. This indicates that VCLT's price experiences larger fluctuations and is considered to be riskier than VMFXX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VCLTVMFXXDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.48%

0.30%

+2.18%

Volatility (6M)

Calculated over the trailing 6-month period

5.91%

0.79%

+5.12%

Volatility (1Y)

Calculated over the trailing 1-year period

7.95%

1.12%

+6.83%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

12.77%

0.94%

+11.83%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

12.85%

0.94%

+11.91%

VCLT vs. VMFXX - Expense Ratio Comparison

VCLT has a 0.03% expense ratio, which is lower than VMFXX's 0.11% 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. VMFXX - Dividend Comparison

VCLT's dividend yield for the trailing twelve months is around 5.52%, more than VMFXX's 3.87% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
VMFXX
Vanguard Federal Money Market Fund		3.87%4.14%1.63%4.53%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Frequently Asked Questions

VCLT and VMFXX have a correlation of -0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VCLT has higher volatility (2.48%) compared to VMFXX (0.30%). In terms of maximum drawdown, VCLT dropped -34.31% vs VMFXX's 0.00%.

VMFXX currently has the higher Sharpe Ratio (3.67 vs 0.75), 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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