VWOB vs. VCIT
VWOB (Vanguard Emerging Markets Government Bond ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both exchange-traded funds - VWOB is a Emerging Markets Bonds fund tracking the Bloomberg USD Emerging Markets Government RIC Capped Index, while VCIT is a Corporate Bonds fund tracking the Bloomberg U.S. 5-10 Year Corporate Bond Index. Both are passively managed. Over the past 10 years, VWOB returned 3.44%/yr vs 2.85%/yr for VCIT. A 0.59 correlation means they provide meaningful diversification when combined. VWOB charges 0.15%/yr vs 0.03%/yr for VCIT.
Performance
VWOB vs. VCIT - Performance Comparison
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Returns By Period
In the year-to-date period, VWOB achieves a 0.95% return, which is significantly higher than VCIT's -0.26% return. Over the past 10 years, VWOB has outperformed VCIT with an annualized return of 3.44%, while VCIT has yielded a comparatively lower 2.85% annualized return.
VWOB
- 1D
- -0.18%
- 1M
- -0.48%
- YTD
- 0.95%
- 6M
- 1.64%
- 1Y
- 10.16%
- 3Y*
- 9.06%
- 5Y*
- 1.85%
- 10Y*
- 3.44%
VCIT
- 1D
- -0.01%
- 1M
- -0.79%
- YTD
- -0.26%
- 6M
- 0.06%
- 1Y
- 5.98%
- 3Y*
- 6.04%
- 5Y*
- 1.04%
- 10Y*
- 2.85%
VWOB vs. VCIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VWOB Vanguard Emerging Markets Government Bond ETF | 0.95% | 13.49% | 5.20% | 10.68% | -17.39% | -1.80% | 5.65% | 14.46% | -2.92% | 8.41% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | -0.26% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
Correlation
The correlation between VWOB and VCIT is 0.82, 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 | 0.82 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.84 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.77 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.67 |
Correlation (All Time) Calculated using the full available price history since Jun 5, 2013 | 0.59 |
Over the past year, VWOB and VCIT have become more correlated (0.82) than their long-term average of 0.59, meaning their price movements have been converging.
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Return for Risk
VWOB vs. VCIT — Risk / Return Rank
VWOB
VCIT
VWOB vs. VCIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Emerging Markets Government Bond ETF (VWOB) 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.
| VWOB | VCIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.49 | ||
| Sortino ratioReturn per unit of downside risk | +0.67 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.26 | +0.11 |
| Calmar ratioReturn relative to maximum drawdown | 2.28 | 2.03 | +0.25 |
| Martin ratioReturn relative to average drawdown | 9.60 | 6.67 | +2.94 |
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
| VWOB | VCIT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.97 | 1.48 | +0.49 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.20 | 0.16 | +0.04 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.37 | 0.46 | -0.09 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.41 | 0.75 | -0.34 |
Drawdowns
VWOB vs. VCIT - Drawdown Comparison
The maximum VWOB drawdown since its inception was -26.98%, which is greater than VCIT's maximum drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for VWOB and VCIT.
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Drawdown Indicators
| VWOB | VCIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -26.98% | -20.56% | -6.42% |
Max Drawdown (1Y)Largest decline over 1 year | -4.48% | -2.96% | -1.52% |
Max Drawdown (3Y)Largest decline over 3 years | -7.71% | -6.11% | -1.60% |
Max Drawdown (5Y)Largest decline over 5 years | -26.98% | -20.56% | -6.42% |
Max Drawdown (10Y)Largest decline over 10 years | -26.98% | -20.56% | -6.42% |
Current DrawdownCurrent decline from peak | -0.94% | -1.79% | +0.85% |
Average DrawdownAverage peak-to-trough decline | -4.78% | -3.16% | -1.62% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.06% | 0.90% | +0.16% |
Volatility
VWOB vs. VCIT - Volatility Comparison
Vanguard Emerging Markets Government Bond ETF (VWOB) has a higher volatility of 1.65% compared to Vanguard Intermediate-Term Corporate Bond ETF (VCIT) at 1.39%. This indicates that VWOB's price experiences larger fluctuations and is considered to be riskier than VCIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VWOB | VCIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.65% | 1.39% | +0.26% |
Volatility (6M)Calculated over the trailing 6-month period | 4.20% | 3.10% | +1.10% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.18% | 4.07% | +1.11% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 9.18% | 6.61% | +2.57% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.34% | 6.28% | +3.06% |
VWOB vs. VCIT - Expense Ratio Comparison
VWOB has a 0.15% expense ratio, which is higher than VCIT'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
VWOB vs. VCIT - Dividend Comparison
VWOB's dividend yield for the trailing twelve months is around 5.88%, more than VCIT's 4.82% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.82% | 4.62% | 4.43% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% |
VWOB Vanguard Emerging Markets Government Bond ETF | 5.88% | 5.92% | 6.08% | 5.50% | 5.30% | 4.04% | 4.18% | 4.58% | 4.52% | 4.61% | 4.71% | 4.93% |
Frequently Asked Questions
VWOB and VCIT have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VWOB has higher volatility (1.65%) compared to VCIT (1.39%). In terms of maximum drawdown, VWOB dropped -26.98% vs VCIT's -20.56%.
On 10-year performance, VWOB leads with 3.44% vs 2.85% for VCIT. On fees, VCIT is cheaper at 0.03% per year. On volatility, VCIT has been the lower-risk option at 1.39%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VWOB has performed better with a 3.44% return vs 2.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCIT is cheaper with a 0.03% expense ratio, compared with 0.15% for VWOB.
VWOB has the higher dividend yield at 5.88%, compared with 4.82% for VCIT.
VWOB is categorized as Emerging Markets Bonds, while VCIT is Corporate Bonds. VWOB tracks Bloomberg USD Emerging Markets Government RIC Capped Index, while VCIT tracks Bloomberg U.S. 5-10 Year Corporate Bond Index. Their fees differ too: 0.15% for VWOB and 0.03% for VCIT.
VWOB currently has the higher Sharpe Ratio (1.97 vs 1.48), 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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