BND vs VCSH
Vanguard Total Bond Market ETF vs Vanguard Short Term Corporate Bond ETF
Quick Verdict
VCSH delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.
Side-by-Side Comparison
| Metric | BND | VCSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $159.8B | $44.9B | |
| Dividend Yield | 3.94% | 4.44% | |
| Holdings | 17,528 | 2,719 | |
| YTD Return | -0.61% | +0.59% | |
| 1Y Return | +1.81% | +2.88% | |
| 3Y Return (annualized) | +4.14% | +5.45% | |
| 5Y Return (annualized) | -0.29% | +2.30% | |
| Volatility (annualized) | 4.6% | 2.6% | |
| Max Drawdown | -19.6% | -12.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Apr 3, 2007 | Nov 19, 2009 |
BND vs VCSH Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US). Over the past year BND returned +1.81% while VCSH returned +2.88%. Year to date, BND is down 0.61% versus a gain of 0.59% for VCSH.
Over three years, BND compounded at +4.14% per year against +5.45% for VCSH; over five years the annualized figures are -0.29% and +2.30% respectively. Across the full 17-year window we track, VCSH has the edge at +1.28% annualized vs +0.67%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BND has been the more volatile fund, with annualized monthly volatility of 4.6% compared with 2.6% for VCSH. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -19.6% for BND and -12.9% for VCSH. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BND charges 0.03% per year while VCSH charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BND currently yields 3.94% against 4.44% for VCSH.
Holdings Overlap
BND and VCSH share 1747 holdings out of 11483 unique holdings combined, representing a 5.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BND | Weight in VCSH | Difference |
|---|---|---|---|
| BAC V3.419 12/20/28 | 0.03% | 0.24% | 0.21% |
| TMUS 3.875 04/15/30 | 0.04% | 0.20% | 0.16% |
| ABBV 3.2 11/21/29 | 0.02% | 0.21% | 0.19% |
| CVS 4.3 03/25/28 | Pro | Pro | Pro |
| WFC V5.574 07/25/29 | Pro | Pro | Pro |
| TMUS 3.75 04/15/27 | Pro | Pro | Pro |
| PFE 4.45 05/19/28 | Pro | Pro | Pro |
| C 4.45 09/29/27 | Pro | Pro | Pro |
| BA 5.15 05/01/30 | Pro | Pro | Pro |
| AMGN 5.15 03/02/28 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, BND or VCSH?
BND has an expense ratio of 0.03% while VCSH charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BND or VCSH?
Over the past year BND returned +1.81% vs +2.88% for VCSH, so VCSH leads on 1-year performance. Over the longest common window we track (17 years), BND annualized +0.67% vs +1.28% for VCSH. Past performance does not guarantee future results.
Which is riskier, BND or VCSH?
BND has been the more volatile fund at 4.6% annualized versus 2.6% for VCSH. Worst drawdown: BND -19.6% vs VCSH -12.9%.
Should I hold both BND and VCSH?
BND and VCSH have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BND and VCSH?
BND and VCSH share 1747 common holdings with a 5.0% weight overlap. Combined, they hold 11483 unique securities.
Which pays a higher dividend, BND or VCSH?
BND yields 3.94% while VCSH yields 4.44%, so VCSH currently pays the higher dividend yield.
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