VWESX vs. VLCIX
VWESX (Vanguard Long-Term Investment-Grade Fund Investor Shares) and VLCIX (Vanguard Long-Term Corporate Bond Index Fund Institutional Shares) are both mutual funds - VWESX is a Total Bond Market fund managed by Vanguard, while VLCIX is a Corporate Bonds fund managed by Vanguard. Over the past 10 years, VWESX returned 1.63%/yr vs 2.43%/yr for VLCIX. With a 0.98 correlation, they move nearly in lockstep. VWESX charges 0.22%/yr vs 0.05%/yr for VLCIX.
Performance
VWESX vs. VLCIX - Performance Comparison
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Returns By Period
In the year-to-date period, VWESX achieves a 0.81% return, which is significantly lower than VLCIX's 1.23% return. Over the past 10 years, VWESX has underperformed VLCIX with an annualized return of 1.63%, while VLCIX has yielded a comparatively higher 2.43% annualized return.
VWESX
- 1D
- 0.00%
- 1M
- 1.77%
- YTD
- 0.81%
- 6M
- -0.07%
- 1Y
- 7.69%
- 3Y*
- 3.50%
- 5Y*
- -2.10%
- 10Y*
- 1.63%
VLCIX
- 1D
- 0.12%
- 1M
- 1.98%
- YTD
- 1.23%
- 6M
- 0.35%
- 1Y
- 8.16%
- 3Y*
- 4.70%
- 5Y*
- -1.44%
- 10Y*
- 2.43%
VWESX vs. VLCIX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VWESX Vanguard Long-Term Investment-Grade Fund Investor Shares | 0.81% | 7.20% | -2.75% | 9.30% | -25.62% | -3.14% | 15.39% | 20.44% | -6.26% | 11.96% |
VLCIX Vanguard Long-Term Corporate Bond Index Fund Institutional Shares | 1.23% | 7.27% | -1.43% | 11.06% | -25.75% | -1.24% | 13.74% | 23.18% | -6.86% | 12.42% |
Correlation
The correlation between VWESX and VLCIX is 0.96 - 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 | 0.96 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.99 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.98 |
Correlation (All Time) Calculated using the full available price history since Nov 20, 2009 | 0.98 |
The correlation between VWESX and VLCIX has been stable across timeframes, ranging from 0.96 to 0.99 - a consistent structural relationship.
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Return for Risk
VWESX vs. VLCIX — Risk / Return Rank
VWESX
VLCIX
VWESX vs. VLCIX - 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 Index Fund Institutional Shares (VLCIX). 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.
| VWESX | VLCIX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.11 | ||
| Sortino ratioReturn per unit of downside risk | -0.13 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.19 | -0.02 |
| Calmar ratioReturn relative to maximum drawdown | 1.54 | 1.61 | -0.07 |
| Martin ratioReturn relative to average drawdown | 3.90 | 3.96 | -0.06 |
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
| VWESX | VLCIX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.00 | 1.11 | -0.11 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.17 | -0.12 | -0.05 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.15 | 0.23 | -0.08 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.56 | 0.45 | +0.11 |
Drawdowns
VWESX vs. VLCIX - Drawdown Comparison
The maximum VWESX drawdown since its inception was -36.34%, which is greater than VLCIX's maximum drawdown of -34.56%. Use the drawdown chart below to compare losses from any high point for VWESX and VLCIX.
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Drawdown Indicators
| VWESX | VLCIX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -36.34% | -34.56% | -1.78% |
Max Drawdown (1Y)Largest decline over 1 year | -5.12% | -5.26% | +0.14% |
Max Drawdown (3Y)Largest decline over 3 years | -13.36% | -12.86% | -0.50% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -34.56% | +0.08% |
Max Drawdown (10Y)Largest decline over 10 years | -36.34% | -34.56% | -1.78% |
Current DrawdownCurrent decline from peak | -18.84% | -13.74% | -5.10% |
Average DrawdownAverage peak-to-trough decline | -6.74% | -8.03% | +1.29% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.01% | 2.13% | -0.12% |
Volatility
VWESX vs. VLCIX - Volatility Comparison
Vanguard Long-Term Investment-Grade Fund Investor Shares (VWESX) and Vanguard Long-Term Corporate Bond Index Fund Institutional Shares (VLCIX) have volatilities of 2.57% and 2.45%, 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.
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Volatility by Period
| VWESX | VLCIX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.57% | 2.45% | +0.12% |
Volatility (6M)Calculated over the trailing 6-month period | 5.62% | 5.49% | +0.13% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.86% | 7.65% | +0.21% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.10% | 11.88% | +0.22% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.86% | 10.61% | +0.25% |
VWESX vs. VLCIX - Expense Ratio Comparison
VWESX has a 0.22% expense ratio, which is higher than VLCIX's 0.05% 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. VLCIX - Dividend Comparison
VWESX's dividend yield for the trailing twelve months is around 5.05%, less than VLCIX's 5.52% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VLCIX Vanguard Long-Term Corporate Bond Index Fund Institutional Shares | 5.52% | 5.50% | 5.60% | 4.67% | 4.43% | 2.95% | 3.17% | 3.83% | 4.58% | 4.03% | 4.39% | 4.73% |
VWESX Vanguard Long-Term Investment-Grade Fund Investor Shares | 5.05% | 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
With a correlation of 0.96, VWESX and VLCIX 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.
VWESX has higher volatility (2.57%) compared to VLCIX (2.45%). In terms of maximum drawdown, VWESX dropped -36.34% vs VLCIX's -34.56%.
VLCIX currently has the higher Sharpe Ratio (1.11 vs 1.00), 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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