VCSH vs VEU
Vanguard Short Term Corporate Bond ETF vs Vanguard FTSE All World Ex US ETF
Quick Verdict
VCSH has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 3,928 holdings.
Side-by-Side Comparison
| Metric | VCSH | VEU | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $52.0B | $68.4B | |
| Dividend Yield | 4.46% | 2.55% | |
| Holdings | 3,023 | 3,928 | |
| YTD Return | +1.13% | +14.50% | |
| 1Y Return | +3.19% | +25.77% | |
| 3Y Return (annualized) | +5.74% | +20.75% | |
| 5Y Return (annualized) | +2.39% | +9.98% | |
| Volatility (annualized) | 2.6% | 17.7% | |
| Max Drawdown | -12.9% | -62.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Mar 2, 2007 |
VCSH vs VEU Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US) and Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US). Over the past year VCSH returned +3.19% while VEU returned +25.77%. Year to date, VCSH is up 1.13% versus a gain of 14.50% for VEU.
Over three years, VCSH compounded at +5.74% per year against +20.75% for VEU; over five years the annualized figures are +2.39% and +9.98% respectively. Across the full 17-year window we track, VEU has the edge at +3.55% annualized vs +1.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEU has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -62.8% for VEU. 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCSH charges 0.03% per year while VEU charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VCSH currently yields 4.46% against 2.55% for VEU.
Holdings Overlap
VCSH and VEU share 0 holdings out of 3378 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 VEU?
VCSH has an expense ratio of 0.03% while VEU charges 0.04%. VCSH is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VCSH or VEU?
Over the past year VCSH returned +3.19% vs +25.77% for VEU, so VEU leads on 1-year performance. Over the longest common window we track (17 years), VCSH annualized +1.31% vs +3.55% for VEU. Past performance does not guarantee future results.
Which is riskier, VCSH or VEU?
VEU has been the more volatile fund at 17.7% annualized versus 2.6% for VCSH. Worst drawdown: VCSH -12.9% vs VEU -62.8%.
Should I hold both VCSH and VEU?
VCSH and VEU have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCSH and VEU?
VCSH and VEU share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3378 unique securities.
Which pays a higher dividend, VCSH or VEU?
VCSH yields 4.46% while VEU yields 2.55%, so VCSH currently pays the higher dividend yield.
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