VLTCX vs. LMLCX

Last updated Jun 4, 2026

VLTCX (Vanguard Long-Term Corporate Bond Index Fund Admiral Shares) and LMLCX (Western Asset SMASh Series C Fund) are both Corporate Bonds funds. Over the past 10 years, VLTCX returned 2.42%/yr vs 4.65%/yr for LMLCX. At a 0.48 correlation, their price movements are largely independent. VLTCX charges 0.07%/yr vs 0.00%/yr for LMLCX.

Performance

VLTCX vs. LMLCX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Long-Term Corporate Bond Index Fund Admiral Shares (VLTCX) and Western Asset SMASh Series C Fund (LMLCX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VLTCX achieves a 1.22% return, which is significantly lower than LMLCX's 1.82% return. Over the past 10 years, VLTCX has underperformed LMLCX with an annualized return of 2.42%, while LMLCX has yielded a comparatively higher 4.65% annualized return.

VLTCX

• 1D: 0.10%
• 1M: 1.99%
• YTD: 1.22%
• 6M: 0.35%
• 1Y: 8.16%
• 3Y*: 4.67%
• 5Y*: -1.46%
• 10Y*: 2.42%

LMLCX

• 1D: 0.22%
• 1M: 1.85%
• YTD: 1.82%
• 6M: 1.66%
• 1Y: 11.29%
• 3Y*: 6.50%
• 5Y*: 4.57%
• 10Y*: 4.65%

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

VLTCX vs. LMLCX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VLTCX Vanguard Long-Term Corporate Bond Index Fund Admiral Shares	1.22%	7.27%	-1.47%	11.05%	-25.77%	-1.16%	13.68%	23.19%	-6.85%	12.40%
LMLCX Western Asset SMASh Series C Fund	1.82%	12.22%	-2.21%	12.93%	-3.51%	3.08%	2.93%	15.10%	-4.24%	7.20%

Correlation

The correlation between VLTCX and LMLCX is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.56
Correlation (All Time) Calculated using the full available price history since May 24, 2012	0.48

Over the past year, VLTCX and LMLCX have become more correlated (0.95) than their long-term average of 0.48, meaning their price movements have been converging.

Return for Risk

VLTCX vs. LMLCX — Risk / Return Rank

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

VLTCX

VLTCX Risk / Return Rank: 16
VLTCX Sharpe Ratio Rank: 16
VLTCX Sortino Ratio Rank: 15
VLTCX Omega Ratio Rank: 14
VLTCX Calmar Ratio Rank: 19
VLTCX Martin Ratio Rank: 14

LMLCX

LMLCX Risk / Return Rank: 40
LMLCX Sharpe Ratio Rank: 34
LMLCX Sortino Ratio Rank: 37
LMLCX Omega Ratio Rank: 34
LMLCX Calmar Ratio Rank: 52
LMLCX Martin Ratio Rank: 44

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.

VLTCX vs. LMLCX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Corporate Bond Index Fund Admiral Shares (VLTCX) and Western Asset SMASh Series C Fund (LMLCX). 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.

	VLTCX	LMLCX	Difference
Sharpe ratio: Return per unit of total volatility	1.11	1.68	-0.58
Sortino ratio: Return per unit of downside risk	1.62	2.52	-0.89
Omega ratio: Gain probability vs. loss probability	1.19	1.31	-0.12
Calmar ratio: Return relative to maximum drawdown	1.60	2.75	-1.14
Martin ratio: Return relative to average drawdown	3.93	9.40	-5.47
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VLTCX vs. LMLCX - Sharpe Ratio Comparison

The current VLTCX Sharpe Ratio is 1.11, which is lower than the LMLCX Sharpe Ratio of 1.68. The chart below compares the historical Sharpe Ratios of VLTCX and LMLCX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VLTCX	LMLCX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.11	1.68	-0.58
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.12	0.59	-0.71
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.23	0.65	-0.42
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.78	-0.34

Drawdowns

VLTCX vs. LMLCX - Drawdown Comparison

The maximum VLTCX drawdown since its inception was -34.56%, which is greater than LMLCX's maximum drawdown of -23.45%. Use the drawdown chart below to compare losses from any high point for VLTCX and LMLCX.

Drawdown Indicators

	VLTCX	LMLCX	Difference
Max Drawdown Largest peak-to-trough decline	-34.56%	-23.45%	-11.11%
Max Drawdown (1Y) Largest decline over 1 year	-5.29%	-4.22%	-1.07%
Max Drawdown (3Y) Largest decline over 3 years	-12.87%	-11.77%	-1.10%
Max Drawdown (5Y) Largest decline over 5 years	-34.56%	-11.77%	-22.79%
Max Drawdown (10Y) Largest decline over 10 years	-34.56%	-23.45%	-11.11%
Current Drawdown Current decline from peak	-13.80%	0.00%	-13.80%
Average Drawdown Average peak-to-trough decline	-8.04%	-1.94%	-6.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.15%	1.23%	+0.92%

Volatility

VLTCX vs. LMLCX - Volatility Comparison

Vanguard Long-Term Corporate Bond Index Fund Admiral Shares (VLTCX) has a higher volatility of 2.46% compared to Western Asset SMASh Series C Fund (LMLCX) at 2.07%. This indicates that VLTCX's price experiences larger fluctuations and is considered to be riskier than LMLCX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VLTCX	LMLCX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.46%	2.07%	+0.39%
Volatility (6M) Calculated over the trailing 6-month period	5.52%	4.47%	+1.05%
Volatility (1Y) Calculated over the trailing 1-year period	7.68%	6.91%	+0.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.87%	7.79%	+4.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.60%	7.19%	+3.41%

VLTCX vs. LMLCX - Expense Ratio Comparison

VLTCX has a 0.07% expense ratio, which is higher than LMLCX's 0.00% 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

VLTCX vs. LMLCX - Dividend Comparison

VLTCX's dividend yield for the trailing twelve months is around 5.50%, less than LMLCX's 6.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LMLCX Western Asset SMASh Series C Fund	6.18%	6.11%	6.58%	5.78%	4.46%	5.42%	3.54%	4.16%	5.59%	4.04%	3.75%	5.64%
VLTCX Vanguard Long-Term Corporate Bond Index Fund Admiral Shares	5.50%	5.48%	5.58%	4.65%	4.41%	3.03%	3.15%	3.82%	4.56%	4.01%	4.37%	4.71%

Frequently Asked Questions

Can I hold both VLTCX and LMLCX in my portfolio?

With a correlation of 0.95, VLTCX and LMLCX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VLTCX or LMLCX?

VLTCX has higher volatility (2.46%) compared to LMLCX (2.07%). In terms of maximum drawdown, VLTCX dropped -34.56% vs LMLCX's -23.45%.

Which has better risk-adjusted returns?

LMLCX currently has the higher Sharpe Ratio (1.68 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.