LQD vs VCIT: returns, risk and drawdowns compared
iShares iBoxx $ Investment Grade Corporate Bond ETF against Vanguard Intermediate-Term Corporate Bond ETF, over the same 16 years (December 2009 to October 2026) with dividends reinvested.
Data updated October 2026
From December 2009 to October 2026, LQD returned 3.5% a year and VCIT 4.0% a year on average, so VCIT came out ahead by 0.5% a year. LQD was the more volatile of the two (7.3% against 6.0% a year), and the deepest falls from a month-end high were 23.3% for LQD and 18.8% for VCIT.
The correlation of monthly returns was 0.97: they moved almost in lockstep. Over 168 rolling 3-year periods, LQD did better in 39% and VCIT in 61%.
Side by side
| LQD | VCIT | |
|---|---|---|
| Annual return (CAGR) | +3.5% | +4.0% |
| Total return | +80% | +95% |
| Annual volatility | 7.3% | 6.0% |
| Maximum drawdown (month-end) | −23.3% | −18.8% |
| Worst month | −6.7% | −7.3% |
| Best month | +7.6% | +6.3% |
| Positive months | 60% | 64% |
| Best year | 2019: +17.4% | 2019: +14.1% |
| Worst year | 2022: −17.9% | 2022: −14.0% |
| 1-year return | −3.9% | −2.3% |
| 5 years, a year | −0.8% | +0.8% |
| 10 years, a year | +1.9% | +2.4% |
| Trading currency | USD | USD |
First nine rows: the same 203 months for both funds. Trailing returns: to each fund’s last close.
Growth of 10,000: LQD vs VCIT
Returns by calendar year
| Year | LQD | VCIT |
|---|---|---|
| 2025 | +7.9% | +9.3% |
| 2024 | +0.9% | +3.2% |
| 2023 | +9.4% | +9.0% |
| 2022 | −17.9% | −14.0% |
| 2021 | −1.8% | −1.8% |
| 2020 | +10.7% | +9.5% |
| 2019 | +17.4% | +14.1% |
| 2018 | −3.8% | −1.7% |
| 2017 | +7.1% | +5.3% |
| 2016 | +6.2% | +5.3% |
| 2015 | −1.3% | +0.9% |
| 2014 | +8.2% | +7.9% |
| 2013 | −2.0% | −1.9% |
| 2012 | +10.6% | +11.1% |
| 2011 | +9.7% | +9.0% |
| 2010 | +9.3% | +10.0% |
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
The comparison uses only the months in which both funds have prices, so the figures cover the same period even when one fund is older.
Questions
Which has returned more, LQD or VCIT?
From December 2009 to October 2026, LQD returned +3.5% a year and VCIT +4.0% a year, with dividends reinvested. Over rolling 3-year periods LQD did better in 39% of cases. Past returns do not predict future returns.
Which is riskier, LQD or VCIT?
Over the same months annual volatility was 7.3% for LQD and 6.0% for VCIT; the deepest fall from a month-end high was 23.3% and 18.8%, and the worst single month −6.7% and −7.3%.
How correlated are LQD and VCIT?
The correlation of their monthly returns was 0.97: they moved almost in lockstep. Holding both adds little diversification compared with holding one.
More comparisons
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.