VGLT vs. VCLT
Compare and contrast key facts about Vanguard Long-Term Treasury ETF (VGLT) and Vanguard Long-Term Corporate Bond ETF (VCLT).
VGLT and VCLT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VGLT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. Long Government Float Adjusted Index. It was launched on Nov 19, 2009. VCLT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 10+ Year Corporate Index. It was launched on Nov 19, 2009. Both VGLT and VCLT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VGLT or VCLT.
Key characteristics
| VGLT | VCLT | |
|---|---|---|
| YTD Return | -4.50% | -0.36% |
| 1Y Return | 5.38% | 10.04% |
| 3Y Return (Ann) | -10.72% | -5.87% |
| 5Y Return (Ann) | -5.09% | -1.30% |
| 10Y Return (Ann) | 0.05% | 2.63% |
| Sharpe Ratio | 0.49 | 1.03 |
| Sortino Ratio | 0.78 | 1.51 |
| Omega Ratio | 1.09 | 1.18 |
| Calmar Ratio | 0.16 | 0.42 |
| Martin Ratio | 1.21 | 3.11 |
| Ulcer Index | 5.47% | 3.63% |
| Daily Std Dev | 13.47% | 10.91% |
| Max Drawdown | -46.18% | -34.31% |
| Current Drawdown | -38.65% | -19.64% |
Correlation
The correlation between VGLT and VCLT is 0.82, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VGLT vs. VCLT - Performance Comparison
In the year-to-date period, VGLT achieves a -4.50% return, which is significantly lower than VCLT's -0.36% return. Over the past 10 years, VGLT has underperformed VCLT with an annualized return of 0.05%, while VCLT has yielded a comparatively higher 2.63% 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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VGLT vs. VCLT - Expense Ratio Comparison
Both VGLT and VCLT have an expense ratio of 0.04%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
VGLT vs. VCLT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Treasury ETF (VGLT) and Vanguard Long-Term Corporate Bond ETF (VCLT). 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
VGLT vs. VCLT - Dividend Comparison
VGLT's dividend yield for the trailing twelve months is around 4.12%, less than VCLT's 5.01% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGLT Vanguard Long-Term Treasury ETF | 4.12% | 3.33% | 2.83% | 1.82% | 2.15% | 2.46% | 2.71% | 2.55% | 2.69% | 3.21% | 2.75% | 3.19% |
VCLT Vanguard Long-Term Corporate Bond ETF | 5.01% | 4.67% | 4.44% | 3.07% | 3.16% | 3.81% | 4.55% | 4.01% | 4.33% | 4.68% | 4.29% | 4.83% |
Drawdowns
VGLT vs. VCLT - Drawdown Comparison
The maximum VGLT drawdown since its inception was -46.18%, which is greater than VCLT's maximum drawdown of -34.31%. Use the drawdown chart below to compare losses from any high point for VGLT and VCLT. For additional features, visit the drawdowns tool.
Volatility
VGLT vs. VCLT - Volatility Comparison
Vanguard Long-Term Treasury ETF (VGLT) has a higher volatility of 4.29% compared to Vanguard Long-Term Corporate Bond ETF (VCLT) at 3.85%. This indicates that VGLT's price experiences larger fluctuations and is considered to be riskier than VCLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.