VB vs VCSH

Quick Verdict

VB delivered stronger 1-year returns. VCSH offers more diversification with 2440 holdings.

Lower Fees: TiedHigher Returns: VBMore Diversified: VCSH

Side-by-Side Comparison

MetricVBVCSHWinner
Expense Ratio0.03%0.03%
AUM$81.5B$44.9B
Dividend Yield1.48%4.44%
Holdings1,3242,719
YTD Return+17.82%+0.74%
1Y Return+29.09%+3.00%
3Y Return (annualized)+16.24%+5.33%
5Y Return (annualized)+8.18%+2.32%
Volatility (annualized)18.9%2.6%
Max Drawdown-61.0%-12.9%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityFixed Income
InceptionJan 26, 2004Nov 19, 2009

VB vs VCSH Performance

Vanguard Small Cap ETF (VB) is a ETF from Vanguard (US) and Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US). Over the past year VB returned +29.09% while VCSH returned +3.00%. Year to date, VB is up 17.82% versus a gain of 0.74% for VCSH.

Over three years, VB compounded at +16.24% per year against +5.33% for VCSH; over five years the annualized figures are +8.18% and +2.32% respectively. Across the full 17-year window we track, VB has the edge at +8.86% annualized vs +1.29%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VB has been the more volatile fund, with annualized monthly volatility of 18.9% 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 -61.0% for VB 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VB charges 0.03% per year while VCSH charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VB currently yields 1.48% against 4.44% for VCSH.

Holdings Overlap

0.0%overlap

VB and VCSH share 3 holdings out of 3549 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VBWeight in VCSHDifference
HUBB0.18%0.01%0.17%
SF0.14%0.01%0.13%
GMT0.09%0.02%0.07%

Frequently Asked Questions

Which is cheaper, VB or VCSH?

VB 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, VB or VCSH?

Over the past year VB returned +29.09% vs +3.00% for VCSH, so VB leads on 1-year performance. Over the longest common window we track (17 years), VB annualized +8.86% vs +1.29% for VCSH. Past performance does not guarantee future results.

Which is riskier, VB or VCSH?

VB has been the more volatile fund at 18.9% annualized versus 2.6% for VCSH. Worst drawdown: VB -61.0% vs VCSH -12.9%.

Should I hold both VB and VCSH?

VB and VCSH have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VB and VCSH?

VB and VCSH share 3 common holdings with a 0.0% weight overlap. Combined, they hold 3549 unique securities.

Which pays a higher dividend, VB or VCSH?

VB yields 1.48% while VCSH yields 4.44%, so VCSH currently pays the higher dividend yield.

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