VCIT vs VCSH
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Short Term Corporate Bond ETF
Which is better, VCIT or VCSH?
Long Term Mid Quality against Short Term Bond.
VCIT led over 3Y and the full window, VCSH over 1Y and 5Y. The two have moved almost in lockstep, correlation 0.95.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VCIT | VCSH |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $69.8B | $52.0B |
| Dividend Yield | 4.89% | 4.47% |
| Holdings | 2,271 | 3,023 |
| YTD Return | -1.44% | +0.41%Best |
| 1Y Return | -0.37% | +1.69%Best |
| 3Y Return (annualized) | +6.06%Best | +5.38% |
| 5Y Return (annualized) | +0.52% | +2.20%Best |
| Volatility (annualized) | 5.9% | 2.6%Best |
| Max Drawdown | -20.7% | -12.9%Best |
| $10,000 over 5 years | $10,263 | $11,149Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | Long Term Mid Quality | Short Term Bond |
| Inception | Nov 19, 2009 | Nov 19, 2009 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Sep 21, 2026 (16.8 years).
VCIT vs VCSH growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 16.8 years both funds cover.
VCIT vs VCSH Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is an ETF from Vanguard (US) and Vanguard Short Term Corporate Bond ETF (VCSH) is an ETF from Vanguard (US). Over the past year VCIT returned -0.37% while VCSH returned +1.69%. Year to date, VCIT is down 1.44% versus a gain of 0.41% for VCSH.
Over three years, VCIT compounded at +6.06% per year against +5.38% for VCSH; over five years the annualized figures are +0.52% and +2.20% respectively. Across the full 17-year window we track, VCIT has the edge at +1.67% annualized vs +1.26%.
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 2.6% 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 -20.7% for VCIT and -12.9% for VCSH. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 4.89% against 4.47% for VCSH.
Holdings Overlap
We hold position weights for 1,364 holdings in VCIT and 1,545 in VCSH, totalling 61.8% and 62.8% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 21 positions appear in both.
21 positions in common, counted across the 1,364 positions we hold weights for in VCIT and 1,545 in VCSH, against full books of 2,271 and 3,023.
Top Shared Holdings
| Stock | Weight in VCIT | Weight in VCSH | Difference |
|---|---|---|---|
| CURVVanguard Market Liquidity Fund | 0.22% | 0.78% | 0.56% |
| BAC V3.419 12/20/28Bank Of America Corp 3.419 12/20/2028 | 0.00% | 0.24% | 0.24% |
| TOYOTA 4.6 10/10/31 | 0.07% | 0.02% | 0.05% |
| F 6.054 11/05/31Ford Motor Credit Company Llc 6.05% Nov 05, 2031 | 0.02% | 0.06% | 0.04% |
| GSK 3.875 05/15/28Glaxosmithkline Capital Inc 3.875% 05/15/2028 | 0.00% | 0.07% | 0.07% |
| CVS 1.875 02/28/31Cvs Health Corp 1.88% Feb 28, 2031 | 0.01% | 0.06% | 0.05% |
| GM 3.1 01/12/32General Motors Financial Co Inc 3.1% Jan 12, 2032 | 0.02% | 0.04% | 0.02% |
| EA 1.85 02/15/31Electronic Arts Inc Sr Unsecured 02/31 1.85 | 0.03% | 0.02% | 0.01% |
| CATMED 5.205 12/01/3Commonspirit Health 5.21% 01Dec2031 | 0.04% | 0.01% | 0.03% |
| HD 1.875 09/15/31Home Depot Inc 1.88% Sep 15, 2031 | 0.03% | 0.02% | 0.01% |
You are not choosing between two funds in isolation.
Whichever of VCIT and VCSH you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VCIT or VCSH?
VCIT has an expense ratio of 0.03% while VCSH charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, VCIT or VCSH?
Over the past year VCIT returned -0.37% vs +1.69% for VCSH, so VCSH leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.67% vs +1.26% for VCSH. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VCIT or VCSH?
VCIT has been the more volatile fund at 5.9% annualized versus 2.6% 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. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, VCIT or VCSH?
VCIT yields 4.89% while VCSH yields 4.47%, so VCIT currently pays the higher dividend yield.
Is VCSH better than VCIT?
VCIT led over 3Y and the full window, VCSH over 1Y and 5Y. The two have moved almost in lockstep, correlation 0.95. Which one suits a particular account depends on what it is for. This is information, not a recommendation.