VCSH vs VEA
Vanguard Short Term Corporate Bond ETF vs Vanguard FTSE Developed Markets ETF
Quick Verdict
VEA delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.
Side-by-Side Comparison
| Metric | VCSH | VEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $44.9B | $230.9B | |
| Dividend Yield | 4.44% | 2.57% | |
| Holdings | 2,719 | 3,918 | |
| YTD Return | +0.63% | +15.82% | |
| 1Y Return | +2.92% | +29.42% | |
| 3Y Return (annualized) | +5.50% | +20.28% | |
| 5Y Return (annualized) | +2.29% | +10.01% | |
| Volatility (annualized) | 2.6% | 17.8% | |
| Max Drawdown | -12.9% | -62.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Jul 20, 2007 |
VCSH vs VEA Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US) and Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US). Over the past year VCSH returned +2.92% while VEA returned +29.42%. Year to date, VCSH is up 0.63% versus a gain of 15.82% for VEA.
Over three years, VCSH compounded at +5.50% per year against +20.28% for VEA; over five years the annualized figures are +2.29% and +10.01% respectively. Across the full 17-year window we track, VEA has the edge at +3.12% annualized vs +1.28%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -12.9% for VCSH and -62.9% for VEA. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCSH charges 0.03% per year while VEA charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCSH currently yields 4.44% against 2.57% for VEA.
Holdings Overlap
VCSH and VEA share 0 holdings out of 5448 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, VCSH or VEA?
VCSH has an expense ratio of 0.03% while VEA charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VCSH or VEA?
Over the past year VCSH returned +2.92% vs +29.42% for VEA, so VEA leads on 1-year performance. Over the longest common window we track (17 years), VCSH annualized +1.28% vs +3.12% for VEA. Past performance does not guarantee future results.
Which is riskier, VCSH or VEA?
VEA has been the more volatile fund at 17.8% annualized versus 2.6% for VCSH. Worst drawdown: VCSH -12.9% vs VEA -62.9%.
Should I hold both VCSH and VEA?
VCSH and VEA have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCSH and VEA?
VCSH and VEA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 5448 unique securities.
Which pays a higher dividend, VCSH or VEA?
VCSH yields 4.44% while VEA yields 2.57%, so VCSH currently pays the higher dividend yield.
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