VFSTX vs. LQD
Compare and contrast key facts about Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD).
VFSTX is managed by Vanguard. It was launched on Oct 29, 1982. 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.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VFSTX or LQD.
Key characteristics
| VFSTX | LQD | |
|---|---|---|
| YTD Return | 4.24% | 1.86% |
| 1Y Return | 7.79% | 11.12% |
| 3Y Return (Ann) | 1.22% | -2.93% |
| 5Y Return (Ann) | 1.77% | 0.21% |
| 10Y Return (Ann) | 2.03% | 2.50% |
| Sharpe Ratio | 2.76 | 1.47 |
| Sortino Ratio | 4.53 | 2.17 |
| Omega Ratio | 1.58 | 1.26 |
| Calmar Ratio | 1.67 | 0.58 |
| Martin Ratio | 16.39 | 5.23 |
| Ulcer Index | 0.48% | 2.13% |
| Daily Std Dev | 2.86% | 7.59% |
| Max Drawdown | -9.68% | -24.95% |
| Current Drawdown | -1.18% | -10.29% |
Correlation
The correlation between VFSTX and LQD is 0.61, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
VFSTX vs. LQD - Performance Comparison
In the year-to-date period, VFSTX achieves a 4.24% return, which is significantly higher than LQD's 1.86% return. Over the past 10 years, VFSTX has underperformed LQD with an annualized return of 2.03%, while LQD has yielded a comparatively higher 2.50% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VFSTX vs. LQD - Expense Ratio Comparison
VFSTX has a 0.20% expense ratio, which is higher than LQD's 0.15% 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%.
Risk-Adjusted Performance
VFSTX vs. LQD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) 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.
Dividends
VFSTX vs. LQD - Dividend Comparison
VFSTX's dividend yield for the trailing twelve months is around 3.92%, less than LQD's 4.39% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares | 3.92% | 3.04% | 1.93% | 1.62% | 2.24% | 2.81% | 2.67% | 1.99% | 1.97% | 1.98% | 1.89% | 1.82% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.39% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% | 3.39% | 3.83% |
Drawdowns
VFSTX vs. LQD - Drawdown Comparison
The maximum VFSTX drawdown since its inception was -9.68%, smaller than the maximum LQD drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for VFSTX and LQD. For additional features, visit the drawdowns tool.
Volatility
VFSTX vs. LQD - Volatility Comparison
The current volatility for Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) is 0.84%, while iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a volatility of 2.65%. This indicates that VFSTX experiences smaller price fluctuations and is considered to be less risky than LQD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.