VCIT vs VCSH
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Short Term Corporate Bond ETF
Quick Verdict
VCSH delivered stronger 1-year returns. VCSH offers more diversification with 3,023 holdings.
Side-by-Side Comparison
| Metric | VCIT | VCSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $67.7B | $45.0B | |
| Dividend Yield | 4.87% | 4.46% | |
| Holdings | 2,271 | 3,023 | |
| YTD Return | -0.86% | +0.83% | |
| 1Y Return | +1.73% | +2.66% | |
| 3Y Return (annualized) | +6.08% | +5.52% | |
| 5Y Return (annualized) | +0.64% | +2.29% | |
| Volatility (annualized) | 5.9% | 2.5% | |
| Max Drawdown | -20.7% | -12.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 19, 2009 | Nov 19, 2009 |
VCIT vs VCSH Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US). Over the past year VCIT returned +1.73% while VCSH returned +2.66%. Year to date, VCIT is down 0.86% versus a gain of 0.83% for VCSH.
Over three years, VCIT compounded at +6.08% per year against +5.52% for VCSH; over five years the annualized figures are +0.64% and +2.29% respectively. Across the full 17-year window we track, VCIT has the edge at +1.72% annualized vs +1.29%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VCIT has been the more volatile fund, with annualized monthly volatility of 5.9% compared with 2.5% 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 -20.7% for VCIT 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VCIT charges 0.03% per year while VCSH charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCIT currently yields 4.87% against 4.46% for VCSH.
Holdings Overlap
VCIT and VCSH share 15 holdings out of 818 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VCIT | Weight in VCSH | Difference |
|---|---|---|---|
| WMT 1.8 09/22/31 | 0.08% | 0.04% | 0.04% |
| TOYOTA 1.9 09/12/31 | 0.05% | 0.02% | 0.03% |
| STZ 2.25 08/01/31 | 0.04% | 0.03% | 0.01% |
| CVS 1.875 02/28/31 | Pro | Pro | Pro |
| HLEND | Pro | Pro | Pro |
| HNDA 4.85 10/23/31 G | Pro | Pro | Pro |
| EA 1.85 02/15/31 | Pro | Pro | Pro |
| BG 2.75 05/14/31 | Pro | Pro | Pro |
| ARE 3.95 01/15/28 | Pro | Pro | Pro |
| ELV 4.101 03/01/28 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, VCIT or VCSH?
VCIT 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, VCIT or VCSH?
Over the past year VCIT returned +1.73% vs +2.66% for VCSH, so VCSH leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.72% vs +1.29% for VCSH. Past performance does not guarantee future results.
Which is riskier, VCIT or VCSH?
VCIT has been the more volatile fund at 5.9% annualized versus 2.5% for VCSH. Worst drawdown: VCIT -20.7% vs VCSH -12.9%.
Should I hold both VCIT and VCSH?
VCIT and VCSH have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VCIT and VCSH?
VCIT and VCSH share 15 common holdings with a 0.2% weight overlap. Combined, they hold 818 unique securities.
Which pays a higher dividend, VCIT or VCSH?
VCIT yields 4.87% while VCSH yields 4.46%, so VCIT currently pays the higher dividend yield.
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