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).
VCIT holds the edge across 5 of 5 key metrics in this comparison. VCIT has delivered stronger 1-year price return (-0.55% vs -1.75% for LQD).
- 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
- 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
| Metric | LQD | VCIT |
|---|---|---|
| ETF scorei | 38.0 | 35.0 |
| Latest closei | $105.16 | $79.98 |
| 1M returni | -0.23% | -0.93% |
| 6M returni | -1.37% | -1.15% |
| 1Y returni | -1.75% | -0.55% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
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 | $10.3K (+3.0%) started 2025-09-17 | $10.44K (+4.4%) started 2025-09-17 |
| 5Y ago | $11.83K (+18.3%) started 2021-09-17 | $12.91K (+29.1%) started 2021-09-17 |
| 10Y ago | $18.87K (+88.7%) started 2016-09-19 | $19.94K (+99.4%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | LQD | VCIT |
|---|---|---|
| Expense ratioi | 0.14% | 0.03% |
| Total assets (AUM)i | $32.04B | $72.04B |
| Dividend yieldi | 4.67% | 4.89% |
| Trailing P/Ei | N/A | N/A |
| Betai | 0.45 | 0.35 |
| 52-week change | -1.75% | -0.55% |
| Metric | LQD | VCIT |
|---|---|---|
| 1Y returni | -1.75% | -0.55% |
| 6M returni | -1.37% | -1.15% |
| 1M returni | -0.23% | -0.93% |
| 1Y Sharpe ratio | -1.16 | -1.20 |
| Betai | 0.45 | 0.35 |
| Dividend yieldi | 4.67% | 4.89% |
| 5Y CAGR | -1.04% | +0.59% |
Over the past year, LQD and VCIT have moved strongly in the same direction (correlation of 0.97), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | LQD | VCIT |
|---|---|---|---|
| 1Y | Growthi | -1.75% | -0.55% |
| CAGRi | -1.76% | -0.55% | |
| Volatilityi | 5.28% | 4.13% | |
| Sharpe ratioi | -1.16 | -1.20 | |
| Sortino ratioi | -1.52 | -1.56 | |
| Max drawdowni | 4.08% | 3.46% | |
| Current drawdowni | 3.27% | 2.89% | |
| Avg drawdowni | 1.43% | 1.03% | |
| Ulcer Indexi | 1.73% | 1.32% | |
| Max daily dropi | 1.23% | 0.94% | |
| Max wkly dropi | 1.92% | 1.40% | |
| 5Y | Growthi | -5.11% | +2.96% |
| CAGRi | -1.04% | +0.59% | |
| Volatilityi | 8.66% | 6.64% | |
| Sharpe ratioi | -0.60 | -0.56 | |
| Sortino ratioi | -0.82 | -0.77 | |
| Max drawdowni | 24.95% | 20.25% | |
| Current drawdowni | 5.66% | 2.89% | |
| Avg drawdowni | 10.95% | 6.87% | |
| Ulcer Indexi | 12.44% | 8.84% | |
| Max daily dropi | 2.31% | 1.71% | |
| Max wkly dropi | 4.94% | 4.34% | |
| 10Y | Growthi | +23.28% | +29.19% |
| CAGRi | +2.12% | +2.60% | |
| Volatilityi | 8.69% | 6.29% | |
| Sharpe ratioi | -0.23 | -0.28 | |
| Sortino ratioi | -0.33 | -0.38 | |
| Max drawdowni | 24.95% | 20.56% | |
| Current drawdowni | 5.66% | 2.89% | |
| Avg drawdowni | 6.55% | 4.35% | |
| Ulcer Indexi | 9.05% | 6.64% | |
| Max daily dropi | 5.00% | 4.49% | |
| Max wkly dropi | 13.25% | 11.29% |
| 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 ratioi | 0.14% | 0.03% |
| Total assets (AUM)i | $32.04B | $72.04B |
| Dividend yieldi | 4.67% | 4.89% |
- 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
- 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
- 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
- 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
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