VTC vs. LQD
Compare and contrast key facts about Vanguard Total Corporate Bond ETF (VTC) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD).
VTC and LQD 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. LQD is a passively managed fund by iShares that tracks the performance of the iBoxx $ Liquid Investment Grade Index. It was launched on Jul 26, 2002. Both VTC and LQD 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 LQD.
Performance
VTC vs. LQD - Performance Comparison
Returns By Period
In the year-to-date period, VTC achieves a 2.47% return, which is significantly higher than LQD's 1.49% return.
VTC
2.47%
-2.15%
3.43%
8.71%
0.46%
N/A
LQD
1.49%
-2.74%
3.22%
8.69%
0.13%
2.48%
Key characteristics
| VTC | LQD | |
|---|---|---|
| Sharpe Ratio | 1.55 | 1.29 |
| Sortino Ratio | 2.30 | 1.89 |
| Omega Ratio | 1.27 | 1.22 |
| Calmar Ratio | 0.62 | 0.54 |
| Martin Ratio | 5.92 | 4.41 |
| Ulcer Index | 1.60% | 2.18% |
| Daily Std Dev | 6.09% | 7.42% |
| Max Drawdown | -22.05% | -24.95% |
| Current Drawdown | -7.83% | -10.62% |
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VTC vs. LQD - Expense Ratio Comparison
VTC has a 0.04% expense ratio, which is lower than LQD's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Correlation
The correlation between VTC and LQD is 0.96, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
VTC vs. LQD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Corporate Bond ETF (VTC) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD). 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. LQD - Dividend Comparison
VTC's dividend yield for the trailing twelve months is around 4.35%, less than LQD's 4.41% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTC Vanguard Total Corporate Bond ETF | 4.35% | 3.81% | 3.13% | 2.36% | 2.69% | 3.34% | 3.54% | 0.55% | 0.00% | 0.00% | 0.00% | 0.00% |
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 4.41% | 3.99% | 3.30% | 2.30% | 2.66% | 3.29% | 3.67% | 3.10% | 3.34% | 3.47% | 3.39% | 3.83% |
Drawdowns
VTC vs. LQD - Drawdown Comparison
The maximum VTC drawdown since its inception was -22.05%, smaller than the maximum LQD drawdown of -24.95%. Use the drawdown chart below to compare losses from any high point for VTC and LQD. For additional features, visit the drawdowns tool.
Volatility
VTC vs. LQD - Volatility Comparison
The current volatility for Vanguard Total Corporate Bond ETF (VTC) is 1.94%, while iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a volatility of 2.49%. This indicates that VTC experiences smaller price fluctuations and is considered to be less risky than LQD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.