VGLT vs. GBDC

Last updated Jun 13, 2026

VGLT (Vanguard Long-Term Treasury ETF) is Government Bonds fund tracking the Bloomberg U.S. Long Treasury Index, while GBDC (Golub Capital BDC, Inc.) is a stock. Over the past 10 years, VGLT returned -1.21%/yr vs 6.73%/yr for GBDC. At a correlation of -0.09, they often move in opposite directions.

Performance

VGLT vs. GBDC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Long-Term Treasury ETF (VGLT) and Golub Capital BDC, Inc. (GBDC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VGLT achieves a 0.03% return, which is significantly lower than GBDC's 0.68% return. Over the past 10 years, VGLT has underperformed GBDC with an annualized return of -1.21%, while GBDC has yielded a comparatively higher 6.73% annualized return.

VGLT

• 1D: -0.27%
• 1M: 1.30%
• YTD: 0.03%
• 6M: 0.49%
• 1Y: 3.29%
• 3Y*: -0.30%
• 5Y*: -5.52%
• 10Y*: -1.21%

GBDC

• 1D: -0.30%
• 1M: 1.53%
• YTD: 0.68%
• 6M: -0.71%
• 1Y: -2.64%
• 3Y*: 10.34%
• 5Y*: 6.81%
• 10Y*: 6.73%

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

VGLT vs. GBDC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGLT Vanguard Long-Term Treasury ETF	0.03%	5.35%	-6.28%	3.27%	-29.34%	-4.98%	17.57%	14.30%	-1.54%	8.64%
GBDC Golub Capital BDC, Inc.	0.68%	-0.50%	13.57%	27.69%	-6.99%	17.78%	-14.73%	21.09%	-2.20%	6.27%

Correlation

The correlation between VGLT and GBDC is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (3Y) Calculated over the trailing 3-year period	0.07
Correlation (5Y) Calculated over the trailing 5-year period	0.03
Correlation (10Y) Calculated over the trailing 10-year period	-0.02
Correlation (All Time) Calculated using the full available price history since Apr 15, 2010	-0.09

The correlation between VGLT and GBDC shifts across timeframes, from -0.09 (all time) to 0.18 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VGLT vs. GBDC — Risk / Return Rank

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

VGLT

VGLT Risk / Return Rank: 15
VGLT Sharpe Ratio Rank: 16
VGLT Sortino Ratio Rank: 15
VGLT Omega Ratio Rank: 14
VGLT Calmar Ratio Rank: 16
VGLT Martin Ratio Rank: 16

GBDC

GBDC Risk / Return Rank: 35
GBDC Sharpe Ratio Rank: 37
GBDC Sortino Ratio Rank: 30
GBDC Omega Ratio Rank: 30
GBDC Calmar Ratio Rank: 38
GBDC Martin Ratio Rank: 37

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.

VGLT vs. GBDC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Treasury ETF (VGLT) and Golub Capital BDC, Inc. (GBDC). 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.

	VGLT	GBDC	Difference
Sharpe ratio: Return per unit of total volatility	0.38	-0.14	+0.52
Sortino ratio: Return per unit of downside risk	0.61	-0.06	+0.67
Omega ratio: Gain probability vs. loss probability	1.07	0.99	+0.08
Calmar ratio: Return relative to maximum drawdown	0.47	-0.15	+0.62
Martin ratio: Return relative to average drawdown	1.19	-0.31	+1.50

VGLT vs. GBDC - Sharpe Ratio Comparison

The current VGLT Sharpe Ratio is 0.38, which is higher than the GBDC Sharpe Ratio of -0.14. The chart below compares the historical Sharpe Ratios of VGLT and GBDC, 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

VGLT vs. GBDC - Drawdown Comparison

The maximum VGLT drawdown since its inception was -46.18%, roughly equal to the maximum GBDC drawdown of -47.30%. Use the drawdown chart below to compare losses from any high point for VGLT and GBDC.

Drawdown Indicators

	VGLT	GBDC	Difference
Max Drawdown Largest peak-to-trough decline	-46.18%	-47.30%	+1.12%
Max Drawdown (1Y) Largest decline over 1 year	-7.01%	-18.20%	+11.19%
Max Drawdown (3Y) Largest decline over 3 years	-17.68%	-18.20%	+0.52%
Max Drawdown (5Y) Largest decline over 5 years	-40.98%	-19.28%	-21.70%
Max Drawdown (10Y) Largest decline over 10 years	-46.18%	-47.30%	+1.12%
Current Drawdown Current decline from peak	-36.55%	-6.79%	-29.76%
Average Drawdown Average peak-to-trough decline	-15.09%	-6.13%	-8.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.78%	8.56%	-5.78%

Volatility

VGLT vs. GBDC - Volatility Comparison

The current volatility for Vanguard Long-Term Treasury ETF (VGLT) is 2.69%, while Golub Capital BDC, Inc. (GBDC) has a volatility of 5.60%. This indicates that VGLT experiences smaller price fluctuations and is considered to be less risky than GBDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGLT	GBDC	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.69%	5.60%	-2.91%
Volatility (6M) Calculated over the trailing 6-month period	6.09%	15.83%	-9.74%
Volatility (1Y) Calculated over the trailing 1-year period	8.78%	19.15%	-10.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.57%	17.19%	-2.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.82%	21.56%	-7.74%

Dividends

VGLT vs. GBDC - Dividend Comparison

VGLT's dividend yield for the trailing twelve months is around 4.59%, less than GBDC's 11.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GBDC Golub Capital BDC, Inc.	11.29%	11.50%	12.73%	10.00%	9.35%	7.58%	8.44%	7.70%	8.49%	7.47%	8.32%	7.70%
VGLT Vanguard Long-Term Treasury ETF	4.59%	4.44%	4.33%	3.33%	2.84%	1.82%	2.15%	2.46%	2.71%	2.55%	2.69%	3.21%

Frequently Asked Questions

Can I hold both VGLT and GBDC in my portfolio?

VGLT and GBDC have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGLT or GBDC?

GBDC has higher volatility (5.60%) compared to VGLT (2.69%). In terms of maximum drawdown, VGLT dropped -46.18% vs GBDC's -47.30%.

Which has better risk-adjusted returns?

VGLT currently has the higher Sharpe Ratio (0.38 vs -0.14), 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.