VTC vs. SPY
VTC (Vanguard Total Corporate Bond ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - VTC is a Corporate Bonds fund tracking the Bloomberg Barclays U.S. Corporate Bond Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 5 years, VTC returned 0.51%/yr vs 13.83%/yr for SPY. At a 0.22 correlation, their price movements are largely independent. VTC charges 0.04%/yr vs 0.09%/yr for SPY.
Performance
VTC vs. SPY - Performance Comparison
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Returns By Period
In the year-to-date period, VTC achieves a 0.60% return, which is significantly lower than SPY's 10.91% return.
VTC
- 1D
- -0.22%
- 1M
- 0.63%
- YTD
- 0.60%
- 6M
- 0.33%
- 1Y
- 5.99%
- 3Y*
- 5.22%
- 5Y*
- 0.51%
- 10Y*
- —
SPY
- 1D
- -0.70%
- 1M
- 5.05%
- YTD
- 10.91%
- 6M
- 10.91%
- 1Y
- 27.98%
- 3Y*
- 22.35%
- 5Y*
- 13.83%
- 10Y*
- 15.49%
VTC vs. SPY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTC Vanguard Total Corporate Bond ETF | 0.60% | 7.58% | 2.15% | 8.58% | -15.68% | -1.41% | 9.30% | 14.60% | -2.55% | 0.84% |
SPY State Street SPDR S&P 500 ETF | 10.91% | 17.72% | 24.89% | 26.18% | -18.18% | 28.73% | 18.33% | 31.22% | -4.57% | 3.89% |
Correlation
The correlation between VTC and SPY is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.39 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.32 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.29 |
Correlation (All Time) Calculated using the full available price history since Nov 10, 2017 | 0.22 |
The correlation between VTC and SPY shifts across timeframes, from 0.22 (all time) to 0.39 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VTC vs. SPY — Risk / Return Rank
VTC
SPY
VTC vs. SPY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Corporate Bond ETF (VTC) and State Street SPDR S&P 500 ETF (SPY). 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.
| VTC | SPY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.00 | ||
| Sortino ratioReturn per unit of downside risk | -1.22 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.43 | -0.19 |
| Calmar ratioReturn relative to maximum drawdown | 2.09 | 3.16 | -1.07 |
| Martin ratioReturn relative to average drawdown | 6.63 | 14.72 | -8.09 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VTC | SPY | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.38 | 2.38 | -1.00 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.07 | 0.82 | -0.74 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.87 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.32 | 0.59 | -0.27 |
Drawdowns
VTC vs. SPY - Drawdown Comparison
The maximum VTC drawdown since its inception was -22.05%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VTC and SPY.
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Drawdown Indicators
| VTC | SPY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.05% | -55.19% | +33.14% |
Max Drawdown (1Y)Largest decline over 1 year | -2.88% | -8.88% | +6.00% |
Max Drawdown (3Y)Largest decline over 3 years | -6.46% | -18.76% | +12.30% |
Max Drawdown (5Y)Largest decline over 5 years | -22.05% | -24.50% | +2.45% |
Max Drawdown (10Y)Largest decline over 10 years | — | -33.72% | — |
Current DrawdownCurrent decline from peak | -0.99% | -0.70% | -0.29% |
Average DrawdownAverage peak-to-trough decline | -5.84% | -9.05% | +3.21% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.90% | 1.91% | -1.01% |
Volatility
VTC vs. SPY - Volatility Comparison
The current volatility for Vanguard Total Corporate Bond ETF (VTC) is 1.43%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 2.84%. This indicates that VTC experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTC | SPY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.43% | 2.84% | -1.41% |
Volatility (6M)Calculated over the trailing 6-month period | 3.22% | 8.90% | -5.68% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.37% | 11.83% | -7.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.08% | 17.05% | -9.97% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.68% | 17.94% | -10.26% |
VTC vs. SPY - Expense Ratio Comparison
VTC has a 0.04% expense ratio, which is lower than SPY's 0.09% 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%.
Dividends
VTC vs. SPY - Dividend Comparison
VTC's dividend yield for the trailing twelve months is around 4.93%, more than SPY's 0.98% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SPY State Street SPDR S&P 500 ETF | 0.98% | 1.07% | 1.21% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% |
VTC Vanguard Total Corporate Bond ETF | 4.93% | 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
VTC and SPY have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SPY has higher volatility (2.84%) compared to VTC (1.43%). In terms of maximum drawdown, VTC dropped -22.05% vs SPY's -55.19%.
On 5-year performance, SPY leads with 13.83% vs 0.51% for VTC. On fees, VTC is cheaper at 0.04% per year. On volatility, VTC has been the lower-risk option at 1.43%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, SPY has performed better with a 13.83% return vs 0.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTC is cheaper with a 0.04% expense ratio, compared with 0.09% for SPY.
VTC has the higher dividend yield at 4.93%, compared with 0.98% for SPY.
VTC is categorized as Corporate Bonds, while SPY is S&P 500. VTC tracks Bloomberg Barclays U.S. Corporate Bond Index, while SPY tracks S&P 500 Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.04% for VTC and 0.09% for SPY.
SPY currently has the higher Sharpe Ratio (2.38 vs 1.38), 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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