VTC vs. BND
VTC (Vanguard Total Corporate Bond ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VTC is a Corporate Bonds fund tracking the Bloomberg U.S. Corporate Bond Index, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Over the past 5 years, VTC returned 0.35%/yr vs 0.04%/yr for BND. Their correlation of 0.91 suggests significant overlap in exposure. Both charge a 0.03% expense ratio.
Performance
VTC vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, VTC achieves a 0.70% return, which is significantly higher than BND's 0.38% return.
VTC
- 1D
- -0.25%
- 1M
- 0.64%
- YTD
- 0.70%
- 6M
- 0.82%
- 1Y
- 5.20%
- 3Y*
- 5.18%
- 5Y*
- 0.35%
- 10Y*
- —
BND
- 1D
- -0.27%
- 1M
- 0.53%
- YTD
- 0.38%
- 6M
- 0.45%
- 1Y
- 4.37%
- 3Y*
- 3.92%
- 5Y*
- 0.04%
- 10Y*
- 1.55%
VTC vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTC Vanguard Total Corporate Bond ETF | 0.70% | 7.58% | 2.15% | 8.58% | -15.68% | -1.41% | 9.30% | 14.60% | -2.55% | 0.85% |
BND Vanguard Total Bond Market ETF | 0.38% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 0.14% |
Correlation
The correlation between VTC and BND 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 | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.96 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (All Time) Calculated using the full available price history since Nov 9, 2017 | 0.91 |
The correlation between VTC and BND has been stable across timeframes, ranging from 0.91 to 0.96 - a consistent structural relationship.
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Return for Risk
VTC vs. BND — Risk / Return Rank
VTC
BND
VTC vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Corporate Bond ETF (VTC) and Vanguard Total Bond Market ETF (BND). 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.
| VTC | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.03 | ||
| Sortino ratioReturn per unit of downside risk | +0.02 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.21 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 1.81 | 1.64 | +0.17 |
| Martin ratioReturn relative to average drawdown | 5.63 | 4.69 | +0.94 |
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Drawdowns
VTC vs. BND - Drawdown Comparison
The maximum VTC drawdown since its inception was -22.05%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VTC and BND.
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Drawdown Indicators
| VTC | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.05% | -18.58% | -3.47% |
Max Drawdown (1Y)Largest decline over 1 year | -2.88% | -2.68% | -0.20% |
Max Drawdown (3Y)Largest decline over 3 years | -6.46% | -5.92% | -0.54% |
Max Drawdown (5Y)Largest decline over 5 years | -22.05% | -17.91% | -4.14% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.58% | — |
Current DrawdownCurrent decline from peak | -0.88% | -2.26% | +1.38% |
Average DrawdownAverage peak-to-trough decline | -5.81% | -3.06% | -2.75% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 0.93% | -0.01% |
Volatility
VTC vs. BND - Volatility Comparison
Vanguard Total Corporate Bond ETF (VTC) has a higher volatility of 1.20% compared to Vanguard Total Bond Market ETF (BND) at 1.08%. This indicates that VTC's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTC | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.20% | 1.08% | +0.12% |
Volatility (6M)Calculated over the trailing 6-month period | 3.32% | 2.77% | +0.55% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.34% | 3.74% | +0.60% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.08% | 6.03% | +1.05% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.67% | 5.54% | +2.13% |
VTC vs. BND - Expense Ratio Comparison
Both VTC and BND have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VTC vs. BND - Dividend Comparison
VTC's dividend yield for the trailing twelve months is around 4.92%, more than BND's 3.96% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.96% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
VTC Vanguard Total Corporate Bond ETF | 4.92% | 4.76% | 4.50% | 3.80% | 3.13% | 2.36% | 2.69% | 3.34% | 3.53% | 0.55% | 0.00% | 0.00% |
Frequently Asked Questions
With a correlation of 0.95, VTC and BND 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.
VTC has higher volatility (1.20%) compared to BND (1.08%). In terms of maximum drawdown, VTC dropped -22.05% vs BND's -18.58%.
On 5-year performance, VTC leads with 0.35% vs 0.04% for BND. Both ETFs have the same 0.03% expense ratio. On volatility, BND has been the lower-risk option at 1.08%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VTC has performed better with a 0.35% return vs 0.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTC and BND have the same expense ratio: 0.03% per year.
VTC has the higher dividend yield at 4.92%, compared with 3.96% for BND.
VTC is categorized as Corporate Bonds, while BND is Total Bond Market. VTC tracks Bloomberg U.S. Corporate Bond Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index.
VTC currently has the higher Sharpe Ratio (1.20 vs 1.18), 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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