VGAVX vs. LQD
VGAVX (Vanguard Emerging Markets Government Bond Index Fund Admiral Shares) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) are both funds - VGAVX is a Government Bonds fund managed by Vanguard, while LQD is a Corporate Bonds fund tracking the iBoxx $ Liquid Investment Grade Index. Over the past 10 years, VGAVX returned 3.70%/yr vs 2.52%/yr for LQD. A 0.53 correlation means they provide meaningful diversification when combined. VGAVX charges 0.20%/yr vs 0.15%/yr for LQD.
Performance
VGAVX vs. LQD - Performance Comparison
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Returns By Period
In the year-to-date period, VGAVX achieves a 1.65% return, which is significantly higher than LQD's 0.46% return. Over the past 10 years, VGAVX has outperformed LQD with an annualized return of 3.70%, while LQD has yielded a comparatively lower 2.52% annualized return.
VGAVX
- 1D
- 0.24%
- 1M
- 1.07%
- YTD
- 1.65%
- 6M
- 1.95%
- 1Y
- 11.27%
- 3Y*
- 9.73%
- 5Y*
- 2.35%
- 10Y*
- 3.70%
LQD
- 1D
- -0.28%
- 1M
- 0.72%
- YTD
- 0.46%
- 6M
- -0.03%
- 1Y
- 6.08%
- 3Y*
- 4.95%
- 5Y*
- -0.04%
- 10Y*
- 2.52%
VGAVX vs. LQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGAVX Vanguard Emerging Markets Government Bond Index Fund Admiral Shares | 1.65% | 12.98% | 6.27% | 10.44% | -16.68% | -1.74% | 5.82% | 14.01% | -2.77% | 8.45% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0.46% | 7.90% | 0.86% | 9.40% | -17.92% | -1.84% | 10.97% | 17.37% | -3.79% | 7.06% |
Correlation
The correlation between VGAVX and LQD is 0.66, 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 | 0.66 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.72 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.58 |
Correlation (All Time) Calculated using the full available price history since Jan 3, 2014 | 0.53 |
The correlation between VGAVX and LQD shifts across timeframes, from 0.53 (all time) to 0.72 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VGAVX vs. LQD — Risk / Return Rank
VGAVX
LQD
VGAVX vs. LQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Emerging Markets Government Bond Index Fund Admiral Shares (VGAVX) 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.
| VGAVX | LQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.68 | ||
| Sortino ratioReturn per unit of downside risk | +2.77 | ||
| Omega ratioGain probability vs. loss probability | 1.58 | 1.20 | +0.39 |
| Calmar ratioReturn relative to maximum drawdown | 2.92 | 1.83 | +1.09 |
| Martin ratioReturn relative to average drawdown | 11.71 | 5.23 | +6.49 |
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
| VGAVX | LQD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.82 | 1.14 | +1.68 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.37 | -0.01 | +0.38 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.58 | 0.29 | +0.29 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.69 | 0.54 | +0.15 |
Drawdowns
VGAVX vs. LQD - Drawdown Comparison
The maximum VGAVX drawdown since its inception was -26.77%, which is greater than LQD's maximum drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for VGAVX and LQD.
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Drawdown Indicators
| VGAVX | LQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -26.77% | -24.95% | -1.82% |
Max Drawdown (1Y)Largest decline over 1 year | -3.97% | -3.34% | -0.63% |
Max Drawdown (3Y)Largest decline over 3 years | -7.11% | -8.43% | +1.32% |
Max Drawdown (5Y)Largest decline over 5 years | -26.77% | -24.95% | -1.82% |
Max Drawdown (10Y)Largest decline over 10 years | -26.77% | -24.95% | -1.82% |
Current DrawdownCurrent decline from peak | -0.09% | -3.72% | +3.63% |
Average DrawdownAverage peak-to-trough decline | -4.68% | -3.99% | -0.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.99% | 1.17% | -0.18% |
Volatility
VGAVX vs. LQD - Volatility Comparison
The current volatility for Vanguard Emerging Markets Government Bond Index Fund Admiral Shares (VGAVX) is 1.53%, while iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a volatility of 1.65%. This indicates that VGAVX 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.
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Volatility by Period
| VGAVX | LQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.53% | 1.65% | -0.12% |
Volatility (6M)Calculated over the trailing 6-month period | 3.32% | 3.90% | -0.58% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.12% | 5.36% | -1.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.32% | 8.65% | -2.33% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.37% | 8.68% | -2.31% |
VGAVX vs. LQD - Expense Ratio Comparison
VGAVX 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%.
Dividends
VGAVX vs. LQD - Dividend Comparison
VGAVX's dividend yield for the trailing twelve months is around 5.79%, more than LQD's 4.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.57% | 4.48% | 4.45% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% |
VGAVX Vanguard Emerging Markets Government Bond Index Fund Admiral Shares | 5.79% | 5.88% | 6.56% | 5.50% | 5.29% | 4.27% | 4.20% | 4.60% | 4.54% | 4.62% | 4.73% | 4.94% |
Frequently Asked Questions
VGAVX and LQD have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LQD has higher volatility (1.65%) compared to VGAVX (1.53%). In terms of maximum drawdown, VGAVX dropped -26.77% vs LQD's -24.95%.
VGAVX currently has the higher Sharpe Ratio (2.82 vs 1.14), 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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