LIVE
LQD
iShares iBoxx Investment Grade Corporate Bond ETF · Fixed Income - Investment Grade Corporate Bonds / ETF
$109.07
+2.21% this month
VERSUS
⟷
COMPARE
VCIT
Vanguard Intermediate-Term Corporate Bond ETF · Fixed Income - Investment Grade Corporate Bonds / ETF
$82.48
+1.57% this month
Scoreboard verdict
Across expense ratio, momentum, yield, fund size, risk
LQD
0
VCIT
5
Comparison scoreboard
VCIT LEADS 5/5Exp. Ratio
LQD 0.14%
VCIT ✓0.03%
1Y Return
LQD +5.60%
VCIT ✓+5.76%
Div. Yield
LQD 4.52%
VCIT ✓4.75%
AUM
LQD $29.78B
VCIT ✓$68.73B
Beta
LQD 0.43
VCIT ✓0.33
Metrics last refreshed: 6/20/2026
Quick take
LQD vs VCIT Stock Comparison: AI Score, Valuation, Performance and Upside
LQD and VCIT both provide investment-grade corporate bond exposure but with meaningful differences — LQD has broader maturity coverage (longer duration), larger AUM and better liquidity, and a higher expense ratio (0.14% vs VCIT's 0.04%), while VCIT focuses on intermediate maturities with lower cost. Rate-sensitive investors may prefer VCIT's shorter duration; institutional traders may prefer LQD's liquidity.
LQD vs VCIT is the liquidity-vs-cost tradeoff in investment-grade corporate bond ETFs — the largest, most liquid fund (LQD) versus the lower-cost, intermediate-duration alternative (VCIT).
Live analysis · updated 6/20/2026
VCIT holds the edge across 5 of 5 key metrics in this comparison. VCIT has delivered stronger 1-year price return (+5.76% vs +5.60% for LQD).
Normalized 1Y performance
LQD
VCIT
Recent returns
LQD
VCIT
Who should consider this stock?
LQD may suit investors who:
- →Need maximum liquidity for investment-grade corporate bond exposure — institutional investors trading in size
- →Want broader maturity range exposure across the investment-grade corporate bond curve
- →Value iShares/BlackRock's largest corporate bond ETF brand for institutional portfolio construction
VCIT may suit investors who:
- →Want the lowest-cost investment-grade corporate bond ETF with Vanguard's cost leadership (0.04% expense ratio)
- →Prefer intermediate-term duration (5-10 years) as a balanced interest rate sensitivity for a core bond allocation
- →Are building a Vanguard fund portfolio where VCIT fits as the corporate bond allocation alongside BND or BNDX
Performance & AI score
| Metric | LQD | VCIT |
|---|---|---|
| ETF score | 51.0 | 55.0 |
| Latest close | $109.07 | $82.48 |
| 1M return | +2.21% | +1.57% |
| 6M return | +1.05% | +0.70% |
| 1Y return | +5.60% | +5.76% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | LQD | VCIT |
|---|---|---|
| 1Y ago | $11.06K (+10.6%) started 2025-06-18 | $11.1K (+11.0%) started 2025-06-18 |
| 5Y ago | $12.19K (+21.9%) started 2021-06-18 | $13.16K (+31.6%) started 2021-06-18 |
| 10Y ago | $19.55K (+95.5%) started 2016-06-20 | $20.49K (+104.9%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Fund characteristics
| Metric | LQD | VCIT |
|---|---|---|
| Expense ratio | 0.14% | 0.03% |
| Total assets (AUM) | $29.78B | $68.73B |
| Dividend yield | 4.52% | 4.75% |
| Trailing P/E | 32.98 | N/A |
| Beta | 0.43 | 0.33 |
| 52-week change | 5.60% | 5.76% |
Risk & fund metrics
| Metric | LQD | VCIT |
|---|---|---|
| 1Y return | +5.60% | +5.76% |
| 6M return | +1.05% | +0.70% |
| 1M return | +2.21% | +1.57% |
| 1Y Sharpe ratio | 0.21 | 0.30 |
| Beta | 0.43 | 0.33 |
| Dividend yield | 4.52% | 4.75% |
| 5Y CAGR | -0.30% | +1.15% |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
LQD max drawdown3.34%
VCIT max drawdown2.96%
LQD max wkly drop1.92%
VCIT max wkly drop1.40%
5Y risk snapshot
LQD max drawdown24.95%
VCIT max drawdown20.56%
LQD max wkly drop4.94%
VCIT max wkly drop4.34%
10Y risk snapshot
LQD max drawdown24.95%
VCIT max drawdown20.56%
LQD max wkly drop13.25%
VCIT max wkly drop11.29%
Performance metrics by period
| Period | Metric | LQD | VCIT |
|---|---|---|---|
| 1Y | Growth | +5.60% | +5.76% |
| CAGR | +5.60% | +5.77% | |
| Sharpe ratio | 0.21 | 0.30 | |
| Max drawdown | 3.34% | 2.96% | |
| Max daily drop | 1.23% | 0.94% | |
| Max wkly drop | 1.92% | 1.40% | |
| 5Y | Growth | -1.49% | +5.87% |
| CAGR | -0.30% | +1.15% | |
| Sharpe ratio | -0.51 | -0.47 | |
| Max drawdown | 24.95% | 20.56% | |
| Max daily drop | 2.31% | 1.71% | |
| Max wkly drop | 4.94% | 4.34% | |
| 10Y | Growth | +28.48% | +33.63% |
| CAGR | +2.54% | +2.94% | |
| Sharpe ratio | -0.19 | -0.22 | |
| Max drawdown | 24.95% | 20.56% | |
| Max daily drop | 5.00% | 4.49% | |
| Max wkly drop | 13.25% | 11.29% |
Fund overview
| Category | LQD | VCIT |
|---|---|---|
| Fund name | iShares iBoxx $ Investment Grade Corporate Bond ETF | Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratio | 0.14% | 0.03% |
| Total assets (AUM) | $29.78B | $68.73B |
| Dividend yield | 4.52% | 4.75% |
LQD strengths
- →Largest investment-grade corporate bond ETF with excellent liquidity and tight bid-ask spreads — preferred by institutional investors for large trades
- →iShares (BlackRock) brand and scale provide institutional credibility and deep secondary market liquidity
- →Tracks the iBoxx index which selects for liquid bonds, making the ETF itself more liquid than less-selective corporate bond indices
VCIT strengths
- →Extremely low expense ratio (0.04%) — among the lowest for investment-grade corporate bond ETFs
- →Intermediate-term duration (5-10 years) provides a balanced interest rate sensitivity between short-term and long-term corporate bonds
- →Vanguard's cooperative ownership structure aligns fund objectives with investor interests
Risks to watch — LQD
- →LQD has a longer effective duration than VCIT, making it more sensitive to interest rate increases — higher rate sensitivity increases losses when rates rise
- →Investment-grade corporate bonds underperform Treasury bonds during economic stress as credit spreads widen
- →BBB-rated bonds (the lowest investment-grade tier) represent a large portion of the corporate bond market and can be downgraded to high-yield in downturns
Risks to watch — VCIT
- →Slightly less liquid than LQD given smaller AUM and institutional following — bid-ask spreads may be slightly wider for large trades
- →Intermediate-term focus means VCIT doesn't include the longest-maturity corporate bonds, limiting some yield pickup versus LQD's broader maturity range
- →Different index (Bloomberg vs iBoxx) means slightly different bond selection and performance versus LQD even at similar durations
Frequently asked questions
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