VTC vs. TLT
VTC (Vanguard Total Corporate Bond ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - VTC is a Corporate Bonds fund tracking the Bloomberg Barclays U.S. Corporate Bond Index, while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 5 years, VTC returned 0.51%/yr vs -6.31%/yr for TLT. Their correlation of 0.80 suggests significant overlap in exposure. VTC charges 0.04%/yr vs 0.15%/yr for TLT.
Performance
VTC vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, VTC achieves a 0.60% return, which is significantly higher than TLT's -0.27% return.
VTC
- 1D
- -0.22%
- 1M
- 0.63%
- YTD
- 0.60%
- 6M
- 0.33%
- 1Y
- 5.99%
- 3Y*
- 5.22%
- 5Y*
- 0.51%
- 10Y*
- —
TLT
- 1D
- -0.40%
- 1M
- 0.81%
- YTD
- -0.27%
- 6M
- -2.02%
- 1Y
- 4.93%
- 3Y*
- -1.80%
- 5Y*
- -6.31%
- 10Y*
- -1.66%
VTC vs. TLT - 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% |
TLT iShares 20+ Year Treasury Bond ETF | -0.27% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 1.10% |
Correlation
The correlation between VTC and TLT is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.89 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.91 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.88 |
Correlation (All Time) Calculated using the full available price history since Nov 10, 2017 | 0.80 |
The correlation between VTC and TLT shifts across timeframes, from 0.80 (all time) to 0.91 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VTC vs. TLT — Risk / Return Rank
VTC
TLT
VTC vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Corporate Bond ETF (VTC) and iShares 20+ Year Treasury Bond ETF (TLT). 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 | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.87 | ||
| Sortino ratioReturn per unit of downside risk | +1.22 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.09 | +0.15 |
| Calmar ratioReturn relative to maximum drawdown | 2.09 | 0.65 | +1.44 |
| Martin ratioReturn relative to average drawdown | 6.63 | 1.63 | +5.00 |
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 | TLT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.38 | 0.51 | +0.87 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.07 | -0.40 | +0.47 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | -0.11 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.32 | 0.26 | +0.06 |
Drawdowns
VTC vs. TLT - Drawdown Comparison
The maximum VTC drawdown since its inception was -22.05%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for VTC and TLT.
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Drawdown Indicators
| VTC | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.05% | -48.35% | +26.30% |
Max Drawdown (1Y)Largest decline over 1 year | -2.88% | -7.58% | +4.70% |
Max Drawdown (3Y)Largest decline over 3 years | -6.46% | -19.18% | +12.72% |
Max Drawdown (5Y)Largest decline over 5 years | -22.05% | -43.70% | +21.65% |
Max Drawdown (10Y)Largest decline over 10 years | — | -48.35% | — |
Current DrawdownCurrent decline from peak | -0.99% | -40.44% | +39.45% |
Average DrawdownAverage peak-to-trough decline | -5.84% | -13.82% | +7.98% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.90% | 3.04% | -2.14% |
Volatility
VTC vs. TLT - Volatility Comparison
The current volatility for Vanguard Total Corporate Bond ETF (VTC) is 1.43%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.76%. This indicates that VTC experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTC | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.43% | 2.76% | -1.33% |
Volatility (6M)Calculated over the trailing 6-month period | 3.22% | 6.50% | -3.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.37% | 9.77% | -5.40% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.08% | 15.87% | -8.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.68% | 14.91% | -7.23% |
VTC vs. TLT - Expense Ratio Comparison
VTC has a 0.04% expense ratio, which is lower than TLT'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%.
Dividends
VTC vs. TLT - Dividend Comparison
VTC's dividend yield for the trailing twelve months is around 4.93%, more than TLT's 4.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 4.59% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
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 TLT have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.76%) compared to VTC (1.43%). In terms of maximum drawdown, VTC dropped -22.05% vs TLT's -48.35%.
On 5-year performance, VTC leads with 0.51% vs -6.31% for TLT. 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, VTC has performed better with a 0.51% return vs -6.31%. 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 0.15% for TLT.
VTC has the higher dividend yield at 4.93%, compared with 4.59% for TLT.
VTC is categorized as Corporate Bonds, while TLT is Government Bonds. VTC tracks Bloomberg Barclays U.S. Corporate Bond Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VTC and 0.15% for TLT.
VTC currently has the higher Sharpe Ratio (1.38 vs 0.51), 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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