VCIT vs VGSH
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Short Term Treasury ETF
Quick Verdict
VGSH delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | VCIT | VGSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $67.3B | $29.4B | |
| Dividend Yield | 4.77% | 3.87% | |
| Holdings | 2,253 | 94 | |
| YTD Return | -0.86% | +0.60% | |
| 1Y Return | +2.08% | +2.51% | |
| 3Y Return (annualized) | +5.97% | +4.18% | |
| 5Y Return (annualized) | +0.79% | +1.86% | |
| Volatility (annualized) | 6.0% | 1.4% | |
| Max Drawdown | -20.7% | -6.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 19, 2009 | Nov 19, 2009 |
VCIT vs VGSH Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US). Over the past year VCIT returned +2.08% while VGSH returned +2.51%. Year to date, VCIT is down 0.86% versus a gain of 0.60% for VGSH.
Over three years, VCIT compounded at +5.97% per year against +4.18% for VGSH; over five years the annualized figures are +0.79% and +1.86% respectively. Across the full 17-year window we track, VCIT has the edge at +1.72% annualized vs +0.70%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VCIT has been the more volatile fund, with annualized monthly volatility of 6.0% 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 worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
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 4.77% against 3.87% for VGSH.
Holdings Overlap
VCIT and VGSH share 0 holdings out of 2095 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, VCIT or VGSH?
VCIT has an expense ratio of 0.03% while VGSH charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VCIT or VGSH?
Over the past year VCIT returned +2.08% vs +2.51% for VGSH, so VGSH leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.72% vs +0.70% for VGSH. Past performance does not guarantee future results.
Which is riskier, VCIT or VGSH?
VCIT has been the more volatile fund at 6.0% 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 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCIT and VGSH?
VCIT and VGSH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2095 unique securities.
Which pays a higher dividend, VCIT or VGSH?
VCIT yields 4.77% while VGSH yields 3.87%, so VCIT currently pays the higher dividend yield.
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