VCIT vs VGSH
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Short Term Treasury ETF
Which is better, VCIT or VGSH?
Long Term Mid Quality against Short Term Government Bond.
VCIT led over 3Y and the full window, VGSH over 1Y and 5Y.
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 | VGSH |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $69.8B | $34.7B |
| Dividend Yield | 4.89% | 3.82% |
| Holdings | 2,271 | 94 |
| YTD Return | -1.72% | +0.48%Best |
| 1Y Return | -0.83% | +1.65%Best |
| 3Y Return (annualized) | +5.86%Best | +4.11% |
| 5Y Return (annualized) | +0.46% | +1.82%Best |
| Volatility (annualized) | 5.9% | 1.4%Best |
| Max Drawdown | -20.7% | -6.7%Best |
| $10,000 over 5 years | $10,232 | $10,944Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | Long Term Mid Quality | Short Term Government 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 18, 2026 (16.8 years).
VCIT vs VGSH 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 VGSH Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is an ETF from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is an ETF from Vanguard (US). Over the past year VCIT returned -0.83% while VGSH returned +1.65%. Year to date, VCIT is down 1.72% versus a gain of 0.48% for VGSH.
Over three years, VCIT compounded at +5.86% per year against +4.11% for VGSH; over five years the annualized figures are +0.46% and +1.82% respectively. Across the full 17-year window we track, VCIT has the edge at +1.66% annualized vs +0.69%.
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 1.4% for VGSH. 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 -6.7% for VGSH. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.58. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VCIT charges 0.03% per year while VGSH charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCIT currently yields 4.89% against 3.82% for VGSH.
Holdings Overlap
We hold position weights for 1,364 holdings in VCIT and 71 in VGSH, totalling 61.8% and 76.6% 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, 1 positions appear in both.
1 positions in common, counted across the 1,364 positions we hold weights for in VCIT and 71 in VGSH, against full books of 2,271 and 94.
Top Shared Holdings
| Stock | Weight in VCIT | Weight in VGSH | Difference |
|---|---|---|---|
| CURVVanguard Market Liquidity Fund | 0.22% | 0.40% | 0.18% |
You are not choosing between two funds in isolation.
Whichever of VCIT and VGSH 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 VGSH?
VCIT has an expense ratio of 0.03% while VGSH charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, VCIT or VGSH?
Over the past year VCIT returned -0.83% vs +1.65% for VGSH, so VGSH leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.66% vs +0.69% for VGSH. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VCIT or VGSH?
VCIT has been the more volatile fund at 5.9% annualized versus 1.4% for VGSH. Worst drawdown: VCIT -20.7% vs VGSH -6.7%.
Should I hold both VCIT and VGSH?
VCIT and VGSH have a monthly-return correlation of 0.58, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VCIT or VGSH?
VCIT yields 4.89% while VGSH yields 3.82%, so VCIT currently pays the higher dividend yield.
Is VGSH better than VCIT?
VCIT led over 3Y and the full window, VGSH over 1Y and 5Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.