VLCIX vs. VSTBX
VLCIX (Vanguard Long-Term Corporate Bond Index Fund Institutional Shares) and VSTBX (Vanguard Short-Term Corporate Bond Index Fund Institutional Shares) are both Corporate Bonds funds from Vanguard. Over the past 10 years, VLCIX returned 2.43%/yr vs 3.01%/yr for VSTBX. A 0.73 correlation means they provide meaningful diversification when combined. Both charge a 0.05% expense ratio.
Performance
VLCIX vs. VSTBX - Performance Comparison
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Returns By Period
In the year-to-date period, VLCIX achieves a 1.23% return, which is significantly higher than VSTBX's 0.73% return. Over the past 10 years, VLCIX has underperformed VSTBX with an annualized return of 2.43%, while VSTBX has yielded a comparatively higher 3.01% annualized return.
VLCIX
- 1D
- 0.12%
- 1M
- 1.98%
- YTD
- 1.23%
- 6M
- 0.35%
- 1Y
- 8.16%
- 3Y*
- 4.70%
- 5Y*
- -1.44%
- 10Y*
- 2.43%
VSTBX
- 1D
- 0.00%
- 1M
- 0.30%
- YTD
- 0.73%
- 6M
- 1.00%
- 1Y
- 4.66%
- 3Y*
- 5.68%
- 5Y*
- 2.43%
- 10Y*
- 3.01%
VLCIX vs. VSTBX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VLCIX Vanguard Long-Term Corporate Bond Index Fund Institutional Shares | 1.23% | 7.27% | -1.43% | 11.06% | -25.75% | -1.24% | 13.74% | 23.18% | -6.86% | 12.42% |
VSTBX Vanguard Short-Term Corporate Bond Index Fund Institutional Shares | 0.73% | 6.75% | 5.37% | 6.17% | -5.73% | -0.41% | 5.07% | 9.68% | 0.92% | 2.48% |
Correlation
The correlation between VLCIX and VSTBX is 0.78, 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 | 0.78 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.79 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.78 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.74 |
Correlation (All Time) Calculated using the full available price history since Nov 20, 2009 | 0.73 |
The correlation between VLCIX and VSTBX has been stable across timeframes, ranging from 0.73 to 0.79 - a consistent structural relationship.
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Return for Risk
VLCIX vs. VSTBX — Risk / Return Rank
VLCIX
VSTBX
VLCIX vs. VSTBX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Corporate Bond Index Fund Institutional Shares (VLCIX) and Vanguard Short-Term Corporate Bond Index Fund Institutional Shares (VSTBX). 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.
| VLCIX | VSTBX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.56 | ||
| Sortino ratioReturn per unit of downside risk | -2.55 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.54 | -0.34 |
| Calmar ratioReturn relative to maximum drawdown | 1.61 | 3.57 | -1.96 |
| Martin ratioReturn relative to average drawdown | 3.96 | 14.23 | -10.27 |
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
| VLCIX | VSTBX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.11 | 2.67 | -1.56 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.12 | 0.90 | -1.02 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.23 | 1.27 | -1.04 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.45 | 1.47 | -1.02 |
Drawdowns
VLCIX vs. VSTBX - Drawdown Comparison
The maximum VLCIX drawdown since its inception was -34.56%, which is greater than VSTBX's maximum drawdown of -9.34%. Use the drawdown chart below to compare losses from any high point for VLCIX and VSTBX.
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Drawdown Indicators
| VLCIX | VSTBX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.56% | -9.34% | -25.22% |
Max Drawdown (1Y)Largest decline over 1 year | -5.26% | -1.31% | -3.95% |
Max Drawdown (3Y)Largest decline over 3 years | -12.86% | -1.31% | -11.55% |
Max Drawdown (5Y)Largest decline over 5 years | -34.56% | -9.34% | -25.22% |
Max Drawdown (10Y)Largest decline over 10 years | -34.56% | -9.34% | -25.22% |
Current DrawdownCurrent decline from peak | -13.74% | -0.24% | -13.50% |
Average DrawdownAverage peak-to-trough decline | -8.03% | -0.96% | -7.07% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.13% | 0.33% | +1.80% |
Volatility
VLCIX vs. VSTBX - Volatility Comparison
Vanguard Long-Term Corporate Bond Index Fund Institutional Shares (VLCIX) has a higher volatility of 2.45% compared to Vanguard Short-Term Corporate Bond Index Fund Institutional Shares (VSTBX) at 0.57%. This indicates that VLCIX's price experiences larger fluctuations and is considered to be riskier than VSTBX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VLCIX | VSTBX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.45% | 0.57% | +1.88% |
Volatility (6M)Calculated over the trailing 6-month period | 5.49% | 1.27% | +4.22% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.65% | 1.76% | +5.89% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.88% | 2.71% | +9.17% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.61% | 2.38% | +8.23% |
VLCIX vs. VSTBX - Expense Ratio Comparison
Both VLCIX and VSTBX have an expense ratio of 0.05%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VLCIX vs. VSTBX - Dividend Comparison
VLCIX's dividend yield for the trailing twelve months is around 5.52%, more than VSTBX's 4.44% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VLCIX Vanguard Long-Term Corporate Bond Index Fund Institutional Shares | 5.52% | 5.50% | 5.60% | 4.67% | 4.43% | 2.95% | 3.17% | 3.83% | 4.58% | 4.03% | 4.39% | 4.73% |
VSTBX Vanguard Short-Term Corporate Bond Index Fund Institutional Shares | 4.44% | 4.34% | 4.29% | 3.09% | 2.00% | 1.80% | 2.27% | 5.40% | 2.67% | 2.27% | 1.96% | 2.25% |
Frequently Asked Questions
VLCIX and VSTBX have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VLCIX has higher volatility (2.45%) compared to VSTBX (0.57%). In terms of maximum drawdown, VLCIX dropped -34.56% vs VSTBX's -9.34%.
VSTBX currently has the higher Sharpe Ratio (2.67 vs 1.11), 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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