VPC vs. IAI

Last updated Jun 4, 2026

VPC (Virtus Private Credit ETF) and IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF) are both exchange-traded funds - VPC is a Nontraditional Bonds fund tracking the Indxx Private Credit Index, while IAI is a Financials Equities fund tracking the DJ US Select / Investment Services. Both are passively managed. Over the past 5 years, VPC returned 1.17%/yr vs 13.43%/yr for IAI. A 0.56 correlation means they provide meaningful diversification when combined. VPC charges 0.75%/yr vs 0.41%/yr for IAI.

Performance

VPC vs. IAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Virtus Private Credit ETF (VPC) and iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VPC achieves a -9.26% return, which is significantly lower than IAI's 0.24% return.

VPC

• 1D: -1.89%
• 1M: -5.24%
• YTD: -9.26%
• 6M: -10.18%
• 1Y: -12.88%
• 3Y*: 2.85%
• 5Y*: 1.17%
• 10Y*: —

IAI

• 1D: -1.71%
• 1M: 1.75%
• YTD: 0.24%
• 6M: 1.73%
• 1Y: 16.52%
• 3Y*: 27.84%
• 5Y*: 13.43%
• 10Y*: 18.46%

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

VPC vs. IAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
VPC Virtus Private Credit ETF	-9.26%	-6.75%	10.52%	22.20%	-11.70%	34.18%	-9.50%	9.32%
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	0.24%	25.80%	34.37%	15.27%	-10.87%	40.48%	18.61%	15.79%

Correlation

The correlation between VPC and IAI is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (3Y) Calculated over the trailing 3-year period	0.52
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (All Time) Calculated using the full available price history since Feb 11, 2019	0.56

The correlation between VPC and IAI shifts across timeframes, from 0.44 (1 year) to 0.57 (5 years), reflecting how their relationship changes across market environments.

VPC vs. IAI - Sectors Allocation Comparison

Sectors	VPC	IAI
Financial Services	98.3%	99.9%
Technology	1.3%	0.1%
Communication Services	0.1%	-
Industrials	0.1%	-
Consumer Cyclical	0.1%	-
Healthcare	0.0%	-
Energy	0.0%	-
Basic Materials	-	-
Consumer Defensive	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

VPC vs. IAI — Risk / Return Rank

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

VPC

VPC Risk / Return Rank: 3
VPC Sharpe Ratio Rank: 1
VPC Sortino Ratio Rank: 2
VPC Omega Ratio Rank: 2
VPC Calmar Ratio Rank: 4
VPC Martin Ratio Rank: 3

IAI

IAI Risk / Return Rank: 23
IAI Sharpe Ratio Rank: 24
IAI Sortino Ratio Rank: 23
IAI Omega Ratio Rank: 23
IAI Calmar Ratio Rank: 22
IAI Martin Ratio Rank: 23

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.

VPC vs. IAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Virtus Private Credit ETF (VPC) and iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). 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.

	VPC	IAI	Difference
Sharpe ratio: Return per unit of total volatility	-0.98	0.87	-1.85
Sortino ratio: Return per unit of downside risk	-1.33	1.27	-2.60
Omega ratio: Gain probability vs. loss probability	0.85	1.16	-0.30
Calmar ratio: Return relative to maximum drawdown	-0.57	1.00	-1.57
Martin ratio: Return relative to average drawdown	-1.13	2.88	-4.00
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VPC vs. IAI - Sharpe Ratio Comparison

The current VPC Sharpe Ratio is -0.98, which is lower than the IAI Sharpe Ratio of 0.87. The chart below compares the historical Sharpe Ratios of VPC and IAI, 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

	VPC	IAI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.98	0.87	-1.85
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.09	0.63	-0.54
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.81	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.20	0.28	-0.08

Drawdowns

VPC vs. IAI - Drawdown Comparison

The maximum VPC drawdown since its inception was -53.45%, smaller than the maximum IAI drawdown of -75.46%. Use the drawdown chart below to compare losses from any high point for VPC and IAI.

Drawdown Indicators

	VPC	IAI	Difference
Max Drawdown Largest peak-to-trough decline	-53.45%	-75.46%	+22.01%
Max Drawdown (1Y) Largest decline over 1 year	-22.76%	-16.52%	-6.24%
Max Drawdown (3Y) Largest decline over 3 years	-24.86%	-23.14%	-1.72%
Max Drawdown (5Y) Largest decline over 5 years	-24.86%	-28.84%	+3.98%
Max Drawdown (10Y) Largest decline over 10 years	—	-40.38%	—
Current Drawdown Current decline from peak	-19.63%	-5.57%	-14.06%
Average Drawdown Average peak-to-trough decline	-7.67%	-22.66%	+14.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.45%	5.75%	+5.70%

Volatility

VPC vs. IAI - Volatility Comparison

The current volatility for Virtus Private Credit ETF (VPC) is 3.27%, while iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) has a volatility of 4.48%. This indicates that VPC experiences smaller price fluctuations and is considered to be less risky than IAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VPC	IAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.27%	4.48%	-1.21%
Volatility (6M) Calculated over the trailing 6-month period	10.85%	14.92%	-4.07%
Volatility (1Y) Calculated over the trailing 1-year period	13.17%	19.05%	-5.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.50%	21.42%	-7.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.56%	22.84%	-2.28%

VPC vs. IAI - Expense Ratio Comparison

VPC has a 0.75% expense ratio, which is higher than IAI's 0.41% expense ratio.

Dividends

VPC vs. IAI - Dividend Comparison

VPC's dividend yield for the trailing twelve months is around 17.30%, more than IAI's 1.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	1.08%	0.95%	1.05%	1.80%	2.14%	1.31%	1.55%	1.52%	1.58%	1.37%	1.49%	1.31%
VPC Virtus Private Credit ETF	17.30%	14.33%	11.26%	11.71%	10.74%	6.31%	10.06%	8.19%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VPC and IAI in my portfolio?

VPC and IAI have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VPC or IAI?

IAI has higher volatility (4.48%) compared to VPC (3.27%). In terms of maximum drawdown, VPC dropped -53.45% vs IAI's -75.46%.

Which ETF is better, VPC or IAI?

On 5-year performance, IAI leads with 13.43% vs 1.17% for VPC. On fees, IAI is cheaper at 0.41% per year. On volatility, VPC has been the lower-risk option at 3.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VPC or IAI?

Over the 5-year period, IAI has performed better with a 13.43% return vs 1.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VPC or IAI?

IAI is cheaper with a 0.41% expense ratio, compared with 0.75% for VPC.

Which ETF pays a higher dividend yield, VPC or IAI?

VPC has the higher dividend yield at 17.30%, compared with 1.08% for IAI.

What is the main difference between VPC and IAI?

VPC is categorized as Nontraditional Bonds, while IAI is Financials Equities. VPC tracks Indxx Private Credit Index, while IAI tracks DJ US Select / Investment Services. They also come from different issuers: Virtus Investment Partners and iShares. Their fees differ too: 0.75% for VPC and 0.41% for IAI.

Which has better risk-adjusted returns?

IAI currently has the higher Sharpe Ratio (0.87 vs -0.98), 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.