VGCAX vs. IEF
VGCAX (Vanguard Global Credit Bond Fund Admiral Shares) and IEF (iShares 7-10 Year Treasury Bond ETF) are both funds - VGCAX is a Total Bond Market fund managed by Vanguard, while IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index. Over the past 5 years, VGCAX returned 1.34%/yr vs -1.24%/yr for IEF. Their correlation of 0.88 suggests significant overlap in exposure. VGCAX charges 0.25%/yr vs 0.15%/yr for IEF.
Performance
VGCAX vs. IEF - Performance Comparison
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Returns By Period
In the year-to-date period, VGCAX achieves a 1.10% return, which is significantly higher than IEF's -0.47% return.
VGCAX
- 1D
- 0.52%
- 1M
- 0.68%
- YTD
- 1.10%
- 6M
- 1.56%
- 1Y
- 5.50%
- 3Y*
- 6.27%
- 5Y*
- 1.34%
- 10Y*
- —
IEF
- 1D
- -0.17%
- 1M
- 0.25%
- YTD
- -0.47%
- 6M
- -0.18%
- 1Y
- 3.78%
- 3Y*
- 2.86%
- 5Y*
- -1.24%
- 10Y*
- 0.59%
VGCAX vs. IEF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
VGCAX Vanguard Global Credit Bond Fund Admiral Shares | 1.10% | 7.30% | 3.99% | 9.22% | -13.43% | -0.64% | 10.81% | 13.05% | 0.96% |
IEF iShares 7-10 Year Treasury Bond ETF | -0.47% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 3.84% |
Correlation
The correlation between VGCAX and IEF is 0.89, 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 | 0.89 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.94 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Nov 15, 2018 | 0.88 |
The correlation between VGCAX and IEF has been stable across timeframes, ranging from 0.88 to 0.94 - a consistent structural relationship.
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Return for Risk
VGCAX vs. IEF — Risk / Return Rank
VGCAX
IEF
VGCAX vs. IEF - 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 7-10 Year Treasury Bond ETF (IEF). 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.
| VGCAX | IEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.93 | ||
| Sortino ratioReturn per unit of downside risk | +1.33 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 1.12 | +0.17 |
| Calmar ratioReturn relative to maximum drawdown | 1.89 | 0.84 | +1.05 |
| Martin ratioReturn relative to average drawdown | 6.28 | 2.35 | +3.93 |
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Drawdowns
VGCAX vs. IEF - Drawdown Comparison
The maximum VGCAX drawdown since its inception was -18.63%, smaller than the maximum IEF drawdown of -23.93%. Use the drawdown chart below to compare losses from any high point for VGCAX and IEF.
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Drawdown Indicators
| VGCAX | IEF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.63% | -23.93% | +5.30% |
Max Drawdown (1Y)Largest decline over 1 year | -2.90% | -4.07% | +1.17% |
Max Drawdown (3Y)Largest decline over 3 years | -4.00% | -7.74% | +3.74% |
Max Drawdown (5Y)Largest decline over 5 years | -18.63% | -21.40% | +2.77% |
Max Drawdown (10Y)Largest decline over 10 years | — | -23.93% | — |
Current DrawdownCurrent decline from peak | -0.64% | -11.18% | +10.54% |
Average DrawdownAverage peak-to-trough decline | -4.33% | -5.35% | +1.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.87% | 1.45% | -0.58% |
Volatility
VGCAX vs. IEF - Volatility Comparison
The current volatility for Vanguard Global Credit Bond Fund Admiral Shares (VGCAX) is 1.23%, while iShares 7-10 Year Treasury Bond ETF (IEF) has a volatility of 1.62%. This indicates that VGCAX experiences smaller price fluctuations and is considered to be less risky than IEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGCAX | IEF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.23% | 1.62% | -0.39% |
Volatility (6M)Calculated over the trailing 6-month period | 2.64% | 3.42% | -0.78% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.32% | 4.72% | -1.40% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.07% | 7.71% | -2.64% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.84% | 6.63% | -1.79% |
VGCAX vs. IEF - Expense Ratio Comparison
VGCAX has a 0.25% expense ratio, which is higher than IEF'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
VGCAX vs. IEF - Dividend Comparison
VGCAX's dividend yield for the trailing twelve months is around 4.95%, more than IEF's 3.89% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.89% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
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 IEF have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IEF has higher volatility (1.62%) compared to VGCAX (1.23%). In terms of maximum drawdown, VGCAX dropped -18.63% vs IEF's -23.93%.
VGCAX currently has the higher Sharpe Ratio (1.65 vs 0.72), 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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