VTC vs. VCIT
Compare and contrast key facts about Vanguard Total Corporate Bond ETF (VTC) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT).
VTC and VCIT 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. VCIT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 5-10 Year Corp Index. It was launched on Nov 19, 2009. Both VTC and VCIT 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 VCIT.
Key characteristics
| VTC | VCIT | |
|---|---|---|
| YTD Return | -1.52% | -1.08% |
| 1Y Return | 2.64% | 2.90% |
| 3Y Return (Ann) | -2.75% | -2.17% |
| 5Y Return (Ann) | 1.08% | 1.47% |
| Sharpe Ratio | 0.35 | 0.40 |
| Daily Std Dev | 7.18% | 6.95% |
| Max Drawdown | -22.05% | -20.56% |
| Current Drawdown | -11.42% | -9.11% |
Correlation
The correlation between VTC and VCIT is 0.93, 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.
Performance
VTC vs. VCIT - Performance Comparison
In the year-to-date period, VTC achieves a -1.52% return, which is significantly lower than VCIT's -1.08% 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. VCIT - Expense Ratio Comparison
Both VTC and VCIT have an expense ratio of 0.04%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
VTC vs. VCIT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Corporate Bond ETF (VTC) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT). 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. VCIT - Dividend Comparison
VTC's dividend yield for the trailing twelve months is around 4.15%, more than VCIT's 4.08% 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% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.08% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% | 3.34% | 4.00% |
Drawdowns
VTC vs. VCIT - Drawdown Comparison
The maximum VTC drawdown since its inception was -22.05%, which is greater than VCIT's maximum drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for VTC and VCIT. For additional features, visit the drawdowns tool.
Volatility
VTC vs. VCIT - Volatility Comparison
Vanguard Total Corporate Bond ETF (VTC) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT) have volatilities of 2.10% and 2.06%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.