VDCA.L vs. TRE3.L

Last updated Jul 18, 2026

VDCA.L (Vanguard USD Corporate 1-3 Year Bond UCITS ETF USD Accumulation) and TRE3.L (Invesco US Treasury Bond 1-3 Year UCITS ETF USD (Dist)) are both exchange-traded funds - VDCA.L is a Short-Term Bond fund tracking the Bloomberg Global Aggregate Corporate - United States Dollar Index 1-3 Year, while TRE3.L is a Government Bonds fund tracking the Bloomberg US Treasury 1-3 Year Index. Both are passively managed. Over the past 5 years, VDCA.L returned 2.71%/yr vs 1.92%/yr for TRE3.L. A 0.57 correlation means they provide meaningful diversification when combined. VDCA.L charges 0.09%/yr vs 0.06%/yr for TRE3.L.

Performance

VDCA.L vs. TRE3.L - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard USD Corporate 1-3 Year Bond UCITS ETF USD Accumulation (VDCA.L) and Invesco US Treasury Bond 1-3 Year UCITS ETF USD (Dist) (TRE3.L). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VDCA.L achieves a 1.32% return, which is significantly higher than TRE3.L's 0.80% return.

VDCA.L

• 1D: 0.11%
• 1M: 0.27%
• 6M: 1.32%
• YTD: 1.32%
• 1Y: 4.08%
• 3Y*: 5.30%
• 5Y*: 2.71%
• 10Y*: —

TRE3.L

• 1D: 0.05%
• 1M: 0.16%
• 6M: 0.90%
• YTD: 0.80%
• 1Y: 3.36%
• 3Y*: 4.27%
• 5Y*: 1.92%
• 10Y*: —

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

VDCA.L vs. TRE3.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
VDCA.L Vanguard USD Corporate 1-3 Year Bond UCITS ETF USD Accumulation	1.32%	5.87%	5.55%	5.39%	-3.80%	-0.21%	3.56%	4.54%
TRE3.L Invesco US Treasury Bond 1-3 Year UCITS ETF USD (Dist)	0.80%	5.13%	4.14%	4.22%	-3.83%	-0.60%	3.11%	3.25%

Correlation

The correlation between VDCA.L and TRE3.L is 0.50, 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	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (All Time) Calculated using the full available price history since Feb 19, 2019	0.57

The correlation between VDCA.L and TRE3.L shifts across timeframes, from 0.50 (1 year) to 0.64 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VDCA.L vs. TRE3.L — Risk / Return Rank

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

VDCA.L

VDCA.L Risk / Return Rank: 93
VDCA.L Sharpe Ratio Rank: 91
VDCA.L Sortino Ratio Rank: 94
VDCA.L Omega Ratio Rank: 92
VDCA.L Calmar Ratio Rank: 94
VDCA.L Martin Ratio Rank: 94

TRE3.L

TRE3.L Risk / Return Rank: 88
TRE3.L Sharpe Ratio Rank: 83
TRE3.L Sortino Ratio Rank: 87
TRE3.L Omega Ratio Rank: 91
TRE3.L Calmar Ratio Rank: 92
TRE3.L Martin Ratio Rank: 88

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.

VDCA.L vs. TRE3.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard USD Corporate 1-3 Year Bond UCITS ETF USD Accumulation (VDCA.L) and Invesco US Treasury Bond 1-3 Year UCITS ETF USD (Dist) (TRE3.L). 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.

	VDCA.L	TRE3.L	Difference
Sharpe ratio: Return per unit of total volatility	2.42	2.01	+0.41
Sortino ratio: Return per unit of downside risk	3.86	3.05	+0.81
Omega ratio: Gain probability vs. loss probability	1.49	1.46	+0.03
Calmar ratio: Return relative to maximum drawdown	5.11	4.61	+0.51
Martin ratio: Return relative to average drawdown	19.09	14.13	+4.96

VDCA.L vs. TRE3.L - Sharpe Ratio Comparison

The current VDCA.L Sharpe Ratio is 2.42, which is comparable to the TRE3.L Sharpe Ratio of 2.01. The chart below compares the historical Sharpe Ratios of VDCA.L and TRE3.L, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VDCA.L vs. TRE3.L - Drawdown Comparison

The maximum VDCA.L drawdown since its inception was -9.85%, which is greater than TRE3.L's maximum drawdown of -5.66%. Use the drawdown chart below to compare losses from any high point for VDCA.L and TRE3.L.

Drawdown Indicators

	VDCA.L	TRE3.L	Difference
Max Drawdown Largest peak-to-trough decline	-9.85%	-5.66%	-4.19%
Max Drawdown (1Y) Largest decline over 1 year	-0.79%	-0.73%	-0.06%
Max Drawdown (3Y) Largest decline over 3 years	-1.14%	-0.97%	-0.17%
Max Drawdown (5Y) Largest decline over 5 years	-6.43%	-5.66%	-0.77%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-1.05%	-1.00%	-0.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.21%	0.24%	-0.03%

Volatility

VDCA.L vs. TRE3.L - Volatility Comparison

Vanguard USD Corporate 1-3 Year Bond UCITS ETF USD Accumulation (VDCA.L) has a higher volatility of 0.53% compared to Invesco US Treasury Bond 1-3 Year UCITS ETF USD (Dist) (TRE3.L) at 0.33%. This indicates that VDCA.L's price experiences larger fluctuations and is considered to be riskier than TRE3.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDCA.L	TRE3.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.53%	0.33%	+0.20%
Volatility (6M) Calculated over the trailing 6-month period	1.33%	1.05%	+0.28%
Volatility (1Y) Calculated over the trailing 1-year period	1.68%	1.66%	+0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.14%	2.09%	+0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.45%	1.83%	+1.62%

VDCA.L vs. TRE3.L - Expense Ratio Comparison

VDCA.L has a 0.09% expense ratio, which is higher than TRE3.L's 0.06% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VDCA.L vs. TRE3.L - Dividend Comparison

VDCA.L has not paid dividends to shareholders, while TRE3.L's dividend yield for the trailing twelve months is around 3.89%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
TRE3.L Invesco US Treasury Bond 1-3 Year UCITS ETF USD (Dist)	3.89%	4.07%	4.41%	4.10%	1.99%	0.32%	1.19%	1.95%
VDCA.L Vanguard USD Corporate 1-3 Year Bond UCITS ETF USD Accumulation	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VDCA.L and TRE3.L in my portfolio?

VDCA.L and TRE3.L have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VDCA.L or TRE3.L?

On fees, TRE3.L is cheaper at 0.06% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VDCA.L or TRE3.L?

TRE3.L is cheaper with a 0.06% expense ratio, compared with 0.09% for VDCA.L.

What is the main difference between VDCA.L and TRE3.L?

VDCA.L is categorized as Short-Term Bond, while TRE3.L is Government Bonds. VDCA.L tracks Bloomberg Global Aggregate Corporate - United States Dollar Index 1-3 Year, while TRE3.L tracks Bloomberg US Treasury 1-3 Year Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.09% for VDCA.L and 0.06% for TRE3.L.