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VTC vs. VCLT
Performance
Return for Risk
Drawdowns
Volatility
Dividends

Performance

VTC vs. VCLT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Corporate Bond ETF (VTC) and Vanguard Long-Term Corporate Bond ETF (VCLT). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VTC achieves a 0.60% return, which is significantly lower than VCLT's 0.99% return.


VTC

1D
-0.22%
1M
0.63%
YTD
0.60%
6M
0.33%
1Y
5.99%
3Y*
5.22%
5Y*
0.51%
10Y*

VCLT

1D
-0.35%
1M
1.49%
YTD
0.99%
6M
-0.04%
1Y
7.69%
3Y*
4.34%
5Y*
-1.78%
10Y*
2.31%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTC vs. VCLT - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
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%
VCLT
Vanguard Long-Term Corporate Bond ETF
0.99%7.18%-1.90%11.17%-25.50%-1.73%13.27%23.89%-7.04%2.33%

Correlation

The correlation between VTC and VCLT is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.


Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.97

Correlation (3Y)
Calculated over the trailing 3-year period

0.97

Correlation (5Y)
Calculated over the trailing 5-year period

0.97

Correlation (All Time)
Calculated using the full available price history since Nov 10, 2017

0.95

The correlation between VTC and VCLT has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

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Return for Risk

VTC vs. VCLT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VTC
VTC Risk / Return Rank: 3939
Overall Rank
VTC Sharpe Ratio Rank: 3838
Sharpe Ratio Rank
VTC Sortino Ratio Rank: 3838
Sortino Ratio Rank
VTC Omega Ratio Rank: 3535
Omega Ratio Rank
VTC Calmar Ratio Rank: 4141
Calmar Ratio Rank
VTC Martin Ratio Rank: 4141
Martin Ratio Rank

VCLT
VCLT Risk / Return Rank: 2727
Overall Rank
VCLT Sharpe Ratio Rank: 2626
Sharpe Ratio Rank
VCLT Sortino Ratio Rank: 2626
Sortino Ratio Rank
VCLT Omega Ratio Rank: 2525
Omega Ratio Rank
VCLT Calmar Ratio Rank: 3030
Calmar Ratio Rank
VCLT Martin Ratio Rank: 2626
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VTC vs. VCLT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Corporate Bond ETF (VTC) and Vanguard Long-Term Corporate Bond ETF (VCLT). 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.


VTCVCLTDifference
Sharpe ratioReturn per unit of total volatility

+0.40

Sortino ratioReturn per unit of downside risk

+0.60

Omega ratioGain probability vs. loss probability

1.24

1.17

+0.07

Calmar ratioReturn relative to maximum drawdown

2.09

1.47

+0.62

Martin ratioReturn relative to average drawdown

6.63

3.62

+3.01

VTC vs. VCLT - Sharpe Ratio Comparison

The current VTC Sharpe Ratio is 1.38, which is higher than the VCLT Sharpe Ratio of 0.97. The chart below compares the historical Sharpe Ratios of VTC and VCLT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.


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Sharpe Ratios by Period


VTCVCLTDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.38

0.97

+0.40

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.07

-0.14

+0.21

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.18

Sharpe Ratio (All Time)

Calculated using the full available price history

0.32

0.39

-0.08

Drawdowns

VTC vs. VCLT - Drawdown Comparison

The maximum VTC drawdown since its inception was -22.05%, smaller than the maximum VCLT drawdown of -34.31%. Use the drawdown chart below to compare losses from any high point for VTC and VCLT.


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Drawdown Indicators


VTCVCLTDifference

Max Drawdown

Largest peak-to-trough decline

-22.05%

-34.31%

+12.26%

Max Drawdown (1Y)

Largest decline over 1 year

-2.88%

-5.25%

+2.37%

Max Drawdown (3Y)

Largest decline over 3 years

-6.46%

-13.03%

+6.57%

Max Drawdown (5Y)

Largest decline over 5 years

-22.05%

-34.31%

+12.26%

Max Drawdown (10Y)

Largest decline over 10 years

-34.31%

Current Drawdown

Current decline from peak

-0.99%

-14.36%

+13.37%

Average Drawdown

Average peak-to-trough decline

-5.84%

-8.16%

+2.32%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.90%

2.13%

-1.23%

Volatility

VTC vs. VCLT - Volatility Comparison

The current volatility for Vanguard Total Corporate Bond ETF (VTC) is 1.43%, while Vanguard Long-Term Corporate Bond ETF (VCLT) has a volatility of 2.31%. This indicates that VTC experiences smaller price fluctuations and is considered to be less risky than VCLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


VTCVCLTDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.43%

2.31%

-0.88%

Volatility (6M)

Calculated over the trailing 6-month period

3.22%

5.75%

-2.53%

Volatility (1Y)

Calculated over the trailing 1-year period

4.37%

7.92%

-3.55%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

7.08%

12.78%

-5.70%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

7.68%

12.84%

-5.16%

VTC vs. VCLT - Expense Ratio Comparison

Both VTC and VCLT 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%.


Dividends

VTC vs. VCLT - Dividend Comparison

VTC's dividend yield for the trailing twelve months is around 4.93%, less than VCLT's 5.55% yield.


PositionTTM20252024202320222021202020192018201720162015
VCLT
Vanguard Long-Term Corporate Bond ETF
5.55%5.51%5.19%4.67%4.44%3.07%3.16%3.81%4.55%4.01%4.33%4.68%
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


With a correlation of 0.97, VTC and VCLT move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

VCLT has higher volatility (2.31%) compared to VTC (1.43%). In terms of maximum drawdown, VTC dropped -22.05% vs VCLT's -34.31%.

On 5-year performance, VTC leads with 0.51% vs -1.78% for VCLT. Both ETFs have the same 0.04% expense ratio. 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 -1.78%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VTC and VCLT have the same expense ratio: 0.04% per year.

VCLT has the higher dividend yield at 5.55%, compared with 4.93% for VTC.

VTC tracks Bloomberg Barclays U.S. Corporate Bond Index, while VCLT tracks Barclays U.S. 10+ Year Corporate Index.

VTC currently has the higher Sharpe Ratio (1.38 vs 0.97), 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.

Portfolio Optimizer

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