VTC vs. JNK
Compare and contrast key facts about Vanguard Total Corporate Bond ETF (VTC) and SPDR Barclays High Yield Bond ETF (JNK).
VTC and JNK are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VTC is a passively managed fund by Vanguard that tracks the performance of the Bloomberg Barclays U.S. Corporate Bond Index. It was launched on Nov 7, 2017. JNK is a passively managed fund by State Street that tracks the performance of the Barclays Capital High Yield Very Liquid Index. It was launched on Nov 28, 2007. Both VTC and JNK 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: VTC or JNK.
Key characteristics
| VTC | JNK | |
|---|---|---|
| YTD Return | -1.52% | 1.77% |
| 1Y Return | 2.64% | 10.58% |
| 3Y Return (Ann) | -2.75% | 1.03% |
| 5Y Return (Ann) | 1.08% | 2.84% |
| Sharpe Ratio | 0.35 | 1.65 |
| Daily Std Dev | 7.18% | 6.20% |
| Max Drawdown | -22.05% | -38.48% |
| Current Drawdown | -11.42% | -0.02% |
Correlation
The correlation between VTC and JNK is 0.44, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
VTC vs. JNK - Performance Comparison
In the year-to-date period, VTC achieves a -1.52% return, which is significantly lower than JNK's 1.77% 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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VTC vs. JNK - Expense Ratio Comparison
VTC has a 0.04% expense ratio, which is lower than JNK's 0.40% expense ratio.
Risk-Adjusted Performance
VTC vs. JNK - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Corporate Bond ETF (VTC) and SPDR Barclays High Yield Bond ETF (JNK). 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
VTC vs. JNK - Dividend Comparison
VTC's dividend yield for the trailing twelve months is around 4.15%, less than JNK's 6.59% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTC Vanguard Total Corporate Bond ETF | 4.15% | 3.80% | 3.13% | 2.36% | 2.69% | 3.34% | 3.53% | 0.55% | 0.00% | 0.00% | 0.00% | 0.00% |
JNK SPDR Barclays High Yield Bond ETF | 6.59% | 6.38% | 6.06% | 4.27% | 5.11% | 5.44% | 5.90% | 5.60% | 6.06% | 6.59% | 5.99% | 6.05% |
Drawdowns
VTC vs. JNK - Drawdown Comparison
The maximum VTC drawdown since its inception was -22.05%, smaller than the maximum JNK drawdown of -38.48%. Use the drawdown chart below to compare losses from any high point for VTC and JNK. For additional features, visit the drawdowns tool.
Volatility
VTC vs. JNK - Volatility Comparison
Vanguard Total Corporate Bond ETF (VTC) has a higher volatility of 2.10% compared to SPDR Barclays High Yield Bond ETF (JNK) at 1.89%. This indicates that VTC's price experiences larger fluctuations and is considered to be riskier than JNK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.