VTC vs. SPY
Compare and contrast key facts about Vanguard Total Corporate Bond ETF (VTC) and SPDR S&P 500 ETF (SPY).
VTC and SPY 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. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993. Both VTC and SPY 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 SPY.
Key characteristics
| VTC | SPY | |
|---|---|---|
| YTD Return | -2.05% | 6.58% |
| 1Y Return | 1.98% | 25.57% |
| 3Y Return (Ann) | -2.89% | 8.08% |
| 5Y Return (Ann) | 0.97% | 13.25% |
| Sharpe Ratio | 0.29 | 2.13 |
| Daily Std Dev | 7.16% | 11.60% |
| Max Drawdown | -22.05% | -55.19% |
| Current Drawdown | -11.89% | -3.47% |
Correlation
The correlation between VTC and SPY is 0.20, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
VTC vs. SPY - Performance Comparison
In the year-to-date period, VTC achieves a -2.05% return, which is significantly lower than SPY's 6.58% 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. 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%.
Risk-Adjusted Performance
VTC vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Corporate Bond ETF (VTC) and 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.
Dividends
VTC vs. SPY - Dividend Comparison
VTC's dividend yield for the trailing twelve months is around 4.17%, more than SPY's 1.33% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTC Vanguard Total Corporate Bond ETF | 4.17% | 3.80% | 3.13% | 2.36% | 2.69% | 3.34% | 3.53% | 0.55% | 0.00% | 0.00% | 0.00% | 0.00% |
SPY SPDR S&P 500 ETF | 1.33% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
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. For additional features, visit the drawdowns tool.
Volatility
VTC vs. SPY - Volatility Comparison
The current volatility for Vanguard Total Corporate Bond ETF (VTC) is 2.03%, while SPDR S&P 500 ETF (SPY) has a volatility of 4.03%. 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.