VBR vs VCSH
Vanguard Small Cap Value ETF vs Vanguard Short Term Corporate Bond ETF
Quick Verdict
VCSH has a lower expense ratio. VBR delivered stronger 1-year returns. VCSH offers more diversification with 2440 holdings.
Side-by-Side Comparison
| Metric | VBR | VCSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $36.9B | $44.9B | |
| Dividend Yield | 2.23% | 4.44% | |
| Holdings | 853 | 2,719 | |
| YTD Return | +17.62% | +0.63% | |
| 1Y Return | +28.72% | +2.92% | |
| 3Y Return (annualized) | +16.07% | +5.50% | |
| 5Y Return (annualized) | +9.64% | +2.29% | |
| Volatility (annualized) | 19.0% | 2.6% | |
| Max Drawdown | -64.0% | -12.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 26, 2004 | Nov 19, 2009 |
VBR vs VCSH Performance
Vanguard Small Cap Value ETF (VBR) is a ETF from Vanguard (US) and Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US). Over the past year VBR returned +28.72% while VCSH returned +2.92%. Year to date, VBR is up 17.62% versus a gain of 0.63% for VCSH.
Over three years, VBR compounded at +16.07% per year against +5.50% for VCSH; over five years the annualized figures are +9.64% and +2.29% respectively. Across the full 17-year window we track, VBR has the edge at +8.02% annualized vs +1.28%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 19.0% 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 -64.0% for VBR 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VBR charges 0.05% per year while VCSH charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, VBR currently yields 2.23% against 4.44% for VCSH.
Holdings Overlap
VBR and VCSH share 3 holdings out of 3246 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VBR or VCSH?
VBR has an expense ratio of 0.05% while VCSH charges 0.03%. VCSH is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VBR or VCSH?
Over the past year VBR returned +28.72% vs +2.92% for VCSH, so VBR leads on 1-year performance. Over the longest common window we track (17 years), VBR annualized +8.02% vs +1.28% for VCSH. Past performance does not guarantee future results.
Which is riskier, VBR or VCSH?
VBR has been the more volatile fund at 19.0% annualized versus 2.6% for VCSH. Worst drawdown: VBR -64.0% vs VCSH -12.9%.
Should I hold both VBR and VCSH?
VBR and VCSH have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBR and VCSH?
VBR and VCSH share 3 common holdings with a 0.0% weight overlap. Combined, they hold 3246 unique securities.
Which pays a higher dividend, VBR or VCSH?
VBR yields 2.23% while VCSH yields 4.44%, so VCSH currently pays the higher dividend yield.
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