VWESX vs. VCLT

Last updated Jun 23, 2026

VWESX (Vanguard Long-Term Investment-Grade Fund Investor Shares) and VCLT (Vanguard Long-Term Corporate Bond ETF) are both funds - VWESX is a Total Bond Market fund managed by Vanguard, while VCLT is a Corporate Bonds fund tracking the Bloomberg U.S. 10+ Year Corporate Bond Index. Over the past 10 years, VWESX returned 1.70%/yr vs 2.24%/yr for VCLT. Their correlation of 0.87 suggests significant overlap in exposure. VWESX charges 0.22%/yr vs 0.03%/yr for VCLT.

Performance

VWESX vs. VCLT - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with VWESX having a 1.21% return and VCLT slightly higher at 1.27%. Over the past 10 years, VWESX has underperformed VCLT with an annualized return of 1.70%, while VCLT has yielded a comparatively higher 2.24% annualized return.

VWESX

• 1D: 0.40%
• 1M: 2.04%
• YTD: 1.21%
• 6M: 1.63%
• 1Y: 6.82%
• 3Y*: 3.46%
• 5Y*: -2.84%
• 10Y*: 1.70%

VCLT

• 1D: -0.40%
• 1M: 1.31%
• YTD: 1.27%
• 6M: 1.30%
• 1Y: 6.37%
• 3Y*: 4.08%
• 5Y*: -2.16%
• 10Y*: 2.24%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VWESX vs. VCLT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWESX Vanguard Long-Term Investment-Grade Fund Investor Shares	1.21%	7.20%	-2.75%	9.30%	-25.62%	-3.14%	15.39%	20.44%	-6.26%	11.96%
VCLT Vanguard Long-Term Corporate Bond ETF	1.27%	7.18%	-1.90%	11.17%	-25.50%	-1.73%	13.27%	23.89%	-7.04%	11.70%

Correlation

The correlation between VWESX and VCLT is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009	0.87

The correlation between VWESX and VCLT has been stable across timeframes, ranging from 0.87 to 0.96 - a consistent structural relationship.

Return for Risk

VWESX vs. VCLT — Risk / Return Rank

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

VWESX

VWESX Risk / Return Rank: 13
VWESX Sharpe Ratio Rank: 12
VWESX Sortino Ratio Rank: 12
VWESX Omega Ratio Rank: 11
VWESX Calmar Ratio Rank: 16
VWESX Martin Ratio Rank: 12

VCLT

VCLT Risk / Return Rank: 23
VCLT Sharpe Ratio Rank: 24
VCLT Sortino Ratio Rank: 22
VCLT Omega Ratio Rank: 21
VCLT Calmar Ratio Rank: 26
VCLT Martin Ratio Rank: 23

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.

VWESX vs. VCLT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Investment-Grade Fund Investor Shares (VWESX) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VWESX	VCLT	Difference
Sharpe ratio: Return per unit of total volatility	0.89	0.82	+0.07
Sortino ratio: Return per unit of downside risk	1.33	1.21	+0.12
Omega ratio: Gain probability vs. loss probability	1.16	1.14	+0.01
Calmar ratio: Return relative to maximum drawdown	1.34	1.22	+0.12
Martin ratio: Return relative to average drawdown	3.32	2.95	+0.37

VWESX vs. VCLT - Sharpe Ratio Comparison

The current VWESX Sharpe Ratio is 0.89, which is comparable to the VCLT Sharpe Ratio of 0.82. The chart below compares the historical Sharpe Ratios of VWESX 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.

Drawdowns

VWESX vs. VCLT - Drawdown Comparison

The maximum VWESX drawdown since its inception was -36.34%, which is greater than VCLT's maximum drawdown of -34.31%. Use the drawdown chart below to compare losses from any high point for VWESX and VCLT.

Drawdown Indicators

	VWESX	VCLT	Difference
Max Drawdown Largest peak-to-trough decline	-36.34%	-34.31%	-2.03%
Max Drawdown (1Y) Largest decline over 1 year	-5.12%	-5.25%	+0.13%
Max Drawdown (3Y) Largest decline over 3 years	-13.36%	-13.03%	-0.33%
Max Drawdown (5Y) Largest decline over 5 years	-34.48%	-34.31%	-0.17%
Max Drawdown (10Y) Largest decline over 10 years	-36.34%	-34.31%	-2.03%
Current Drawdown Current decline from peak	-18.51%	-14.12%	-4.39%
Average Drawdown Average peak-to-trough decline	-6.75%	-8.17%	+1.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.06%	2.17%	-0.11%

Volatility

VWESX vs. VCLT - Volatility Comparison

Vanguard Long-Term Investment-Grade Fund Investor Shares (VWESX) has a higher volatility of 2.03% compared to Vanguard Long-Term Corporate Bond ETF (VCLT) at 1.91%. This indicates that VWESX's price experiences larger fluctuations and is considered to be riskier than VCLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWESX	VCLT	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.03%	1.91%	+0.12%
Volatility (6M) Calculated over the trailing 6-month period	5.63%	5.84%	-0.21%
Volatility (1Y) Calculated over the trailing 1-year period	7.67%	7.84%	-0.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.07%	12.76%	-0.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.86%	12.85%	-1.99%

VWESX vs. VCLT - Expense Ratio Comparison

VWESX has a 0.22% expense ratio, which is higher than VCLT's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VWESX vs. VCLT - Dividend Comparison

VWESX's dividend yield for the trailing twelve months is around 5.03%, less than VCLT's 5.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VCLT Vanguard Long-Term Corporate Bond ETF	5.53%	5.51%	5.19%	4.67%	4.44%	3.07%	3.16%	3.81%	4.55%	4.01%	4.33%	4.68%
VWESX Vanguard Long-Term Investment-Grade Fund Investor Shares	5.03%	4.95%	5.06%	4.55%	4.43%	4.51%	6.89%	5.01%	4.31%	5.50%	6.14%	7.38%

Frequently Asked Questions

Can I hold both VWESX and VCLT in my portfolio?

With a correlation of 0.94, VWESX 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.

Which is riskier, VWESX or VCLT?

VWESX has higher volatility (2.03%) compared to VCLT (1.91%). In terms of maximum drawdown, VWESX dropped -36.34% vs VCLT's -34.31%.

Which has better risk-adjusted returns?

VWESX currently has the higher Sharpe Ratio (0.89 vs 0.82), 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.