XZBU.L vs. VCIT

Last updated Jun 4, 2026

XZBU.L (Xtrackers USD Corporate Bond SRI PAB UCITS ETF 1C) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both Corporate Bonds funds - XZBU.L tracks the Bloomberg US Corp Bond TR USD while VCIT tracks the Barclays U.S. 5-10 Year Corp Index. Both are passively managed. A 0.75 correlation means they provide meaningful diversification when combined. XZBU.L charges 0.16%/yr vs 0.04%/yr for VCIT.

Performance

XZBU.L vs. VCIT - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in Xtrackers USD Corporate Bond SRI PAB UCITS ETF 1C (XZBU.L) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

XZBU.L is traded in GBP, while VCIT is traded in USD. To make them comparable, the VCIT values have been converted to GBP using the latest available exchange rates.

Returns By Period

XZBU.L

• 1D: —
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VCIT

• 1D: 0.05%
• 1M: 1.09%
• YTD: 0.55%
• 6M: -0.46%
• 1Y: 6.87%
• 3Y*: 3.38%
• 5Y*: 2.30%
• 10Y*: 3.74%

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

XZBU.L vs. VCIT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
XZBU.L Xtrackers USD Corporate Bond SRI PAB UCITS ETF 1C	34.27%	0.67%	2.68%	2.98%	-8.73%	-0.87%	-2.84%
VCIT Vanguard Intermediate-Term Corporate Bond ETF	0.55%	1.55%	5.00%	3.53%	-3.75%	-0.84%	-4.31%

Correlation

The correlation between XZBU.L and VCIT is 0.66, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (All Time) Calculated using the full available price history since Sep 11, 2020	0.75

The correlation between XZBU.L and VCIT has been stable across timeframes, ranging from 0.66 to 0.75 - a consistent structural relationship.

Return for Risk

XZBU.L vs. VCIT — Risk / Return Rank

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

VCIT

VCIT Risk / Return Rank: 42
VCIT Sharpe Ratio Rank: 42
VCIT Sortino Ratio Rank: 43
VCIT Omega Ratio Rank: 40
VCIT Calmar Ratio Rank: 41
VCIT Martin Ratio Rank: 42

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.

XZBU.L vs. VCIT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Xtrackers USD Corporate Bond SRI PAB UCITS ETF 1C (XZBU.L) 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	XZBU.L	VCIT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.13	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.27	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.37	—
Sharpe Ratio (All Time) Calculated using the full available price history	—	0.59	—

Drawdowns

Drawdown Indicators

	XZBU.L	VCIT	Difference
Max Drawdown Largest peak-to-trough decline	—	-15.57%	—
Max Drawdown (1Y) Largest decline over 1 year	—	-4.96%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-8.03%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-12.32%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-15.57%	—
Current Drawdown Current decline from peak	—	-2.02%	—
Average Drawdown Average peak-to-trough decline	—	-5.24%	—
Ulcer Index Depth and duration of drawdowns from previous peaks	—	1.80%	—

Volatility

Volatility by Period

	XZBU.L	VCIT	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.49%	—
Volatility (6M) Calculated over the trailing 6-month period	—	4.72%	—
Volatility (1Y) Calculated over the trailing 1-year period	—	6.11%	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	—	8.55%	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	—	10.01%	—

XZBU.L vs. VCIT - Expense Ratio Comparison

XZBU.L has a 0.16% expense ratio, which is higher than VCIT's 0.04% 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

XZBU.L vs. VCIT - Dividend Comparison

XZBU.L has not paid dividends to shareholders, while VCIT's dividend yield for the trailing twelve months is around 4.80%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VCIT Vanguard Intermediate-Term Corporate Bond ETF	4.80%	4.62%	4.43%	3.72%	3.03%	2.87%	2.78%	3.37%	3.61%	3.21%	3.29%	3.34%
XZBU.L Xtrackers USD Corporate Bond SRI PAB UCITS ETF 1C	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XZBU.L and VCIT in my portfolio?

XZBU.L and VCIT have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XZBU.L or VCIT?

On fees, VCIT is cheaper at 0.04% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XZBU.L or VCIT?

VCIT is cheaper with a 0.04% expense ratio, compared with 0.16% for XZBU.L.

What is the main difference between XZBU.L and VCIT?

XZBU.L tracks Bloomberg US Corp Bond TR USD, while VCIT tracks Barclays U.S. 5-10 Year Corp Index. They also come from different issuers: Xtrackers and Vanguard. Their fees differ too: 0.16% for XZBU.L and 0.04% for VCIT.