VGCAX vs. IAGG
VGCAX (Vanguard Global Credit Bond Fund Admiral Shares) and IAGG (iShares Core International Aggregate Bond ETF) are both funds - VGCAX is a Total Bond Market fund managed by Vanguard, while IAGG is a Global Bonds fund tracking the Bloomberg Global Aggregate ex USD 10% Issuer Capped (Hedged) Index. Over the past 5 years, VGCAX returned 1.52%/yr vs 1.11%/yr for IAGG. Their correlation of 0.80 suggests significant overlap in exposure. VGCAX charges 0.25%/yr vs 0.07%/yr for IAGG.
Performance
VGCAX vs. IAGG - Performance Comparison
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Returns By Period
In the year-to-date period, VGCAX achieves a 1.05% return, which is significantly higher than IAGG's 0.92% return.
VGCAX
- 1D
- 0.05%
- 1M
- 0.94%
- YTD
- 1.05%
- 6M
- 0.99%
- 1Y
- 5.94%
- 3Y*
- 6.23%
- 5Y*
- 1.52%
- 10Y*
- —
IAGG
- 1D
- -0.20%
- 1M
- 0.66%
- YTD
- 0.92%
- 6M
- 0.72%
- 1Y
- 2.30%
- 3Y*
- 4.59%
- 5Y*
- 1.11%
- 10Y*
- 2.17%
VGCAX vs. IAGG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
VGCAX Vanguard Global Credit Bond Fund Admiral Shares | 1.05% | 7.30% | 3.99% | 9.22% | -13.43% | -0.64% | 10.81% | 13.05% | 0.96% |
IAGG iShares Core International Aggregate Bond ETF | 0.92% | 3.26% | 4.51% | 8.49% | -10.86% | -1.87% | 4.63% | 7.99% | 1.66% |
Correlation
The correlation between VGCAX and IAGG is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.82 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.84 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.85 |
Correlation (All Time) Calculated using the full available price history since Nov 16, 2018 | 0.80 |
The correlation between VGCAX and IAGG has been stable across timeframes, ranging from 0.80 to 0.85 - a consistent structural relationship.
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Return for Risk
VGCAX vs. IAGG — Risk / Return Rank
VGCAX
IAGG
VGCAX vs. IAGG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Global Credit Bond Fund Admiral Shares (VGCAX) and iShares Core International Aggregate Bond ETF (IAGG). 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.
| VGCAX | IAGG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.02 | ||
| Sortino ratioReturn per unit of downside risk | +1.51 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.15 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | 2.10 | 1.00 | +1.10 |
| Martin ratioReturn relative to average drawdown | 7.10 | 2.99 | +4.11 |
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
| VGCAX | IAGG | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.84 | 0.81 | +1.02 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.30 | 0.25 | +0.05 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.54 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.82 | 0.62 | +0.20 |
Drawdowns
VGCAX vs. IAGG - Drawdown Comparison
The maximum VGCAX drawdown since its inception was -18.63%, which is greater than IAGG's maximum drawdown of -13.88%. Use the drawdown chart below to compare losses from any high point for VGCAX and IAGG.
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Drawdown Indicators
| VGCAX | IAGG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.63% | -13.88% | -4.75% |
Max Drawdown (1Y)Largest decline over 1 year | -2.90% | -2.32% | -0.58% |
Max Drawdown (3Y)Largest decline over 3 years | -4.00% | -2.32% | -1.68% |
Max Drawdown (5Y)Largest decline over 5 years | -18.63% | -13.57% | -5.06% |
Max Drawdown (10Y)Largest decline over 10 years | — | -13.88% | — |
Current DrawdownCurrent decline from peak | -0.70% | -0.98% | +0.28% |
Average DrawdownAverage peak-to-trough decline | -4.35% | -2.85% | -1.50% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.85% | 0.77% | +0.08% |
Volatility
VGCAX vs. IAGG - Volatility Comparison
Vanguard Global Credit Bond Fund Admiral Shares (VGCAX) has a higher volatility of 1.24% compared to iShares Core International Aggregate Bond ETF (IAGG) at 1.18%. This indicates that VGCAX's price experiences larger fluctuations and is considered to be riskier than IAGG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGCAX | IAGG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.24% | 1.18% | +0.06% |
Volatility (6M)Calculated over the trailing 6-month period | 2.59% | 2.40% | +0.19% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.31% | 2.84% | +0.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.07% | 4.51% | +0.56% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.84% | 4.05% | +0.79% |
VGCAX vs. IAGG - Expense Ratio Comparison
VGCAX has a 0.25% expense ratio, which is higher than IAGG's 0.07% 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
VGCAX vs. IAGG - Dividend Comparison
VGCAX's dividend yield for the trailing twelve months is around 4.95%, more than IAGG's 3.66% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IAGG iShares Core International Aggregate Bond ETF | 3.66% | 3.08% | 4.28% | 3.55% | 2.27% | 1.16% | 1.95% | 2.82% | 3.02% | 1.74% | 1.56% | 0.13% |
VGCAX Vanguard Global Credit Bond Fund Admiral Shares | 4.95% | 4.91% | 4.65% | 4.48% | 2.72% | 3.16% | 4.65% | 6.88% | 0.36% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
VGCAX and IAGG have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGCAX has higher volatility (1.24%) compared to IAGG (1.18%). In terms of maximum drawdown, VGCAX dropped -18.63% vs IAGG's -13.88%.
VGCAX currently has the higher Sharpe Ratio (1.84 vs 0.81), 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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