VDC vs. LQD
VDC (Vanguard Consumer Staples ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both exchange-traded funds - VDC is a Consumer Staples Equities fund tracking the MSCI US Investable Market Consumer Staples 25/50 Index, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Both are passively managed. Over the past 10 years, VDC returned 7.63%/yr vs 2.41%/yr for LQD. At a 0.08 correlation, their price movements are largely independent. VDC charges 0.09%/yr vs 0.15%/yr for LQD.
Performance
VDC vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, VDC achieves a 7.19% return, which is significantly higher than LQD's -0.06% return. Over the past 10 years, VDC has outperformed LQD with an annualized return of 7.63%, while LQD has yielded a comparatively lower 2.41% annualized return.
VDC
- 1D
- -0.25%
- 1M
- -2.19%
- YTD
- 7.19%
- 6M
- 7.44%
- 1Y
- 4.07%
- 3Y*
- 8.08%
- 5Y*
- 6.63%
- 10Y*
- 7.63%
LQD
- 1D
- -0.10%
- 1M
- -0.67%
- YTD
- -0.06%
- 6M
- -0.06%
- 1Y
- 5.73%
- 3Y*
- 4.95%
- 5Y*
- -0.28%
- 10Y*
- 2.41%
VDC vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VDC Vanguard Consumer Staples ETF | 7.19% | 2.17% | 13.30% | 2.38% | -1.79% | 17.64% | 10.86% | 26.11% | -7.79% | 11.85% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | -0.06% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Correlation
The correlation between VDC and LQD is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.17 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.25 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.27 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.24 |
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004 | 0.08 |
The correlation between VDC and LQD shifts across timeframes, from 0.08 (all time) to 0.27 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VDC vs. LQD — Risk / Return Rank
VDC
LQD
VDC vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Consumer Staples ETF (VDC) 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.
| VDC | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.75 | ||
| Sortino ratioReturn per unit of downside risk | -1.02 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 1.19 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 0.44 | 1.72 | -1.28 |
| Martin ratioReturn relative to average drawdown | 0.90 | 4.88 | -3.98 |
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
| VDC | LQD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.33 | 1.08 | -0.75 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.51 | -0.03 | +0.54 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.52 | 0.28 | +0.24 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.67 | 0.54 | +0.13 |
Drawdowns
VDC vs. LQD - Drawdown Comparison
The maximum VDC drawdown since its inception was -34.24%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for VDC and LQD.
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Drawdown Indicators
| VDC | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.24% | -24.95% | -9.29% |
Max Drawdown (1Y)Largest decline over 1 year | -9.28% | -3.34% | -5.94% |
Max Drawdown (3Y)Largest decline over 3 years | -11.78% | -8.43% | -3.35% |
Max Drawdown (5Y)Largest decline over 5 years | -16.55% | -24.95% | +8.40% |
Max Drawdown (10Y)Largest decline over 10 years | -25.31% | -24.95% | -0.36% |
Current DrawdownCurrent decline from peak | -7.27% | -4.21% | -3.06% |
Average DrawdownAverage peak-to-trough decline | -3.73% | -3.99% | +0.26% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.53% | 1.18% | +3.35% |
Volatility
VDC vs. LQD - Volatility Comparison
Vanguard Consumer Staples ETF (VDC) has a higher volatility of 4.47% compared to iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) at 1.62%. This indicates that VDC'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.
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Volatility by Period
| VDC | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.47% | 1.62% | +2.85% |
Volatility (6M)Calculated over the trailing 6-month period | 9.87% | 3.94% | +5.93% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.43% | 5.32% | +7.11% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.15% | 8.65% | +4.50% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.65% | 8.68% | +5.97% |
VDC vs. LQD - Expense Ratio Comparison
VDC has a 0.09% 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%.
Dividends
VDC vs. LQD - Dividend Comparison
VDC's dividend yield for the trailing twelve months is around 2.14%, less than LQD's 4.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.59% | 4.48% | 4.45% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% |
VDC Vanguard Consumer Staples ETF | 2.14% | 2.26% | 2.33% | 2.65% | 2.37% | 2.14% | 2.50% | 2.44% | 2.78% | 2.52% | 2.39% | 2.55% |
Frequently Asked Questions
VDC and LQD have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VDC has higher volatility (4.47%) compared to LQD (1.62%). In terms of maximum drawdown, VDC dropped -34.24% vs LQD's -24.95%.
On 10-year performance, VDC leads with 7.63% vs 2.41% for LQD. On fees, VDC is cheaper at 0.09% per year. On volatility, LQD has been the lower-risk option at 1.62%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VDC has performed better with a 7.63% return vs 2.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VDC is cheaper with a 0.09% expense ratio, compared with 0.15% for LQD.
LQD has the higher dividend yield at 4.59%, compared with 2.14% for VDC.
VDC is categorized as Consumer Staples Equities, while LQD is Corporate Bonds. VDC tracks MSCI US Investable Market Consumer Staples 25/50 Index, while LQD tracks iBoxx $ Liquid Investment Grade Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for VDC and 0.15% for LQD.
LQD currently has the higher Sharpe Ratio (1.08 vs 0.33), 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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