VCLT vs LQD Stock Comparison: AI Score, Valuation, Performance and Upside
VCLT and LQD sit in related but distinct corners of the ETF landscape — VCLT centers on higher-yielding, long-duration investment-grade corporate bond exposure, while LQD focuses on the standard, most liquid broad investment-grade corporate bond fund. Investors choosing between them should weigh how each fund's strategy lines up with their own goals rather than assuming they're interchangeable.
Choosing between VCLT and LQD comes down to which specific exposure — higher-yielding, long-duration investment-grade corporate bond exposure or the standard, most liquid broad investment-grade corporate bond fund — better matches the role you want this holding to play in a diversified portfolio.
VCLT holds the edge across 3 of 5 key metrics in this comparison. LQD has delivered stronger 1-year price return (-2.47% vs -4.28% for VCLT).
- want higher-yielding, long-duration investment-grade corporate bond exposure
- prefer Vanguard's approach and fund lineup
- value higher yield than comparable-duration Treasury funds
- are comfortable with long duration makes it highly sensitive to interest-rate moves
- want the standard, most liquid broad investment-grade corporate bond fund
- prefer iShares (BlackRock)'s approach and fund lineup
- value deepest liquidity of any investment-grade corporate bond ETF
- are comfortable with credit spreads can widen in recessions, pressuring price
| Metric | VCLT | LQD |
|---|---|---|
| ETF scorei | 24.4 | 24.4 |
| Latest closei | $70.10 | $103.72 |
| 1M returni | +2.77% | +1.86% |
| 3M returni | -2.94% | -2.44% |
| 6M returni | -4.24% | -3.02% |
| 1Y returni | -4.28% | -2.47% |
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 | VCLT | LQD |
|---|---|---|
| 1Y ago | $10.08K (+0.8%) started 2025-11-03 | $10.18K (+1.8%) started 2025-11-03 |
| 5Y ago | $10.8K (+8.0%) started 2021-11-04 | $11.7K (+17.0%) started 2021-11-04 |
| 10Y ago | $19.86K (+98.6%) started 2016-11-04 | $18.51K (+85.1%) started 2016-11-04 |
Hypothetical — past performance does not guarantee future results.
| Metric | VCLT | LQD |
|---|---|---|
| Expense ratioi | 0.03% | 0.14% |
| Total assets (AUM)i | $8.87B | $28.27B |
| Dividend yieldi | 5.99% | 4.91% |
| Trailing P/Ei | N/A | N/A |
| Betai | 0.65 | 0.46 |
| 52-week change | -4.28% | -2.47% |
| Metric | VCLT | LQD |
|---|---|---|
| 1Y returni | -4.28% | -2.47% |
| 6M returni | -4.24% | -3.02% |
| 3M returni | -2.94% | -2.44% |
| 1M returni | +2.77% | +1.86% |
| 1Y Sharpe ratio | -1.03 | -1.22 |
| Betai | 0.65 | 0.46 |
| Dividend yieldi | 5.99% | 4.91% |
| 5Y CAGR | -3.73% | -1.17% |
Over the past year, VCLT and LQD have moved strongly in the same direction (correlation of 0.99), 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 | VCLT | LQD |
|---|---|---|---|
| 1Y | Growthi | -4.28% | -2.47% |
| CAGRi | -4.28% | -2.47% | |
| Volatilityi | 8.32% | 5.60% | |
| Sharpe ratioi | -1.03 | -1.22 | |
| Sortino ratioi | -1.35 | -1.60 | |
| Max drawdowni | 9.12% | 6.33% | |
| Current drawdowni | 6.49% | 4.60% | |
| Avg drawdowni | 2.81% | 1.88% | |
| Ulcer Indexi | 3.59% | 2.46% | |
| Max daily dropi | 1.96% | 1.23% | |
| Max wkly dropi | 4.07% | 2.55% | |
| 5Y | Growthi | -17.29% | -5.72% |
| CAGRi | -3.73% | -1.17% | |
| Volatilityi | 12.74% | 8.66% | |
| Sharpe ratioi | -0.59 | -0.61 | |
| Sortino ratioi | -0.80 | -0.84 | |
| Max drawdowni | 34.18% | 24.54% | |
| Current drawdowni | 18.51% | 6.44% | |
| Avg drawdowni | 19.38% | 10.62% | |
| Ulcer Indexi | 20.27% | 12.08% | |
| Max daily dropi | 3.27% | 2.31% | |
| Max wkly dropi | 6.69% | 4.94% | |
| 10Y | Growthi | +16.33% | +21.84% |
| CAGRi | +1.52% | +2.00% | |
| Volatilityi | 12.85% | 8.71% | |
| Sharpe ratioi | -0.17 | -0.25 | |
| Sortino ratioi | -0.23 | -0.34 | |
| Max drawdowni | 34.31% | 24.95% | |
| Current drawdowni | 18.67% | 6.95% | |
| Avg drawdowni | 11.47% | 6.55% | |
| Ulcer Indexi | 14.80% | 9.07% | |
| Max daily dropi | 8.82% | 5.00% | |
| Max wkly dropi | 16.70% | 13.25% |
| Category | VCLT | LQD |
|---|---|---|
| Fund name | Vanguard Long-Term Corporate Bond Index Fund ETF Shares | iShares iBoxx $ Investment Grade Corporate Bond ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.03% | 0.14% |
| Total assets (AUM)i | $8.87B | $28.27B |
| Dividend yieldi | 5.99% | 4.91% |
- Higher yield than comparable-duration Treasury funds
- Investment-grade credit quality limits default risk
- Low expense ratio for corporate bond exposure
- Deepest liquidity of any investment-grade corporate bond ETF
- Broad maturity range balances yield and duration risk
- Diversified across hundreds of investment-grade issuers
- Long duration makes it highly sensitive to interest-rate moves
- Credit spreads can widen sharply in economic stress, hurting price
- More volatile than shorter-duration bond funds
- Credit spreads can widen in recessions, pressuring price
- Interest-rate sensitivity from its intermediate-to-long duration mix
- Lower yield than high-yield or leveraged-loan alternatives
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