VCSH vs VGHAX
Vanguard Short Term Corporate Bond ETF vs Vanguard Health Care Fund Admiral Shares
Quick Verdict
VCSH has a lower expense ratio. VGHAX delivered stronger 1-year returns. VCSH offers more diversification with 3,023 holdings.
Side-by-Side Comparison
| Metric | VCSH | VGHAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.27% | |
| AUM | $52.0B | $32.8B | |
| Dividend Yield | 4.46% | 6.45% | |
| Holdings | 3,023 | 109 | |
| YTD Return | +1.13% | +7.13% | |
| 1Y Return | +3.19% | +24.36% | |
| 3Y Return (annualized) | +5.74% | +1.32% | |
| 5Y Return (annualized) | +2.39% | -2.07% | |
| Volatility (annualized) | 2.6% | 15.7% | |
| Max Drawdown | -12.9% | -33.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Nov 12, 2001 |
VCSH vs VGHAX Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US) and Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US). Over the past year VCSH returned +3.19% while VGHAX returned +24.36%. Year to date, VCSH is up 1.13% versus a gain of 7.13% for VGHAX.
Over three years, VCSH compounded at +5.74% per year against +1.32% for VGHAX; over five years the annualized figures are +2.39% and -2.07% respectively. Across the full 5-year window we track, VCSH has the edge at +1.31% annualized vs -2.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGHAX has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -33.6% for VGHAX. 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCSH charges 0.03% per year while VGHAX charges 0.27%. On a $10,000 position that is $3 vs $27 annually, a gap of $24 per year that compounds over a long holding period. On income, VCSH currently yields 4.46% against 6.45% for VGHAX.
Holdings Overlap
VCSH and VGHAX share 0 holdings out of 643 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 VGHAX?
VCSH has an expense ratio of 0.03% while VGHAX charges 0.27%. VCSH is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, VCSH or VGHAX?
Over the past year VCSH returned +3.19% vs +24.36% for VGHAX, so VGHAX leads on 1-year performance. Over the longest common window we track (5 years), VCSH annualized +1.31% vs -2.07% for VGHAX. Past performance does not guarantee future results.
Which is riskier, VCSH or VGHAX?
VGHAX has been the more volatile fund at 15.7% annualized versus 2.6% for VCSH. Worst drawdown: VCSH -12.9% vs VGHAX -33.6%.
Should I hold both VCSH and VGHAX?
VCSH and VGHAX have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCSH and VGHAX?
VCSH and VGHAX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 643 unique securities.
Which pays a higher dividend, VCSH or VGHAX?
VCSH yields 4.46% while VGHAX yields 6.45%, so VGHAX currently pays the higher dividend yield.
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