VCSH vs VGHAX
Vanguard Short Term Corporate Bond ETF vs Vanguard Health Care Fund Admiral Shares
Which is better, VCSH or VGHAX?
Short Term Bond against Large Cap Growth.
VCSH has a lower expense ratio.
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 | VCSH | VGHAX |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.27% |
| AUM | $44.9B | $32.8B |
| Dividend Yield | 4.47% | 6.15% |
| Holdings | 3,028 | 109 |
| YTD Price Return | -3.08% | -0.55% |
| 1Y Price Return | -3.01% | +5.60% |
| 3Y Price Return (annualized) | +0.96% | -0.26% |
| 5Y Price Return (annualized) | -1.20% | -2.24% |
| Volatility (annualized) | 3.3%Best | 15.3% |
| Max Drawdown | -10.8%Best | -32.7% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Short Term Bond | Large Cap Growth |
| Inception | Nov 19, 2009 | Nov 12, 2001 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VCSH currently yields 4.47% and VGHAX 6.15%.
Volatility and max drawdown are measured over the window both funds cover: Oct 12, 2021 to Oct 8, 2026 (5 years).
VCSH vs VGHAX Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is an ETF from Vanguard (US) and Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US). Over the past year VCSH's price moved -3.01% and VGHAX's +5.60%, before the income each one paid out.
Over three years, VCSH compounded at +0.96% per year against -0.26% for VGHAX; over five years the annualized figures are -1.20% and -2.24% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGHAX has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.3% 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 -10.8% for VCSH and -32.7% for VGHAX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.52. They move together some of the time, and apart the rest.
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 4.47% against 6.15% for VGHAX.
Structure and taxes
VGHAX is a mutual fund and VCSH is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 1,545 holdings in VCSH and 77 in VGHAX, totalling 62.8% and 92.5% 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 1,545 positions we hold weights for in VCSH and 77 in VGHAX, against full books of 3,028 and 109.
Top Shared Holdings
| Stock | Weight in VCSH | Weight in VGHAX | Difference |
|---|---|---|---|
| BSXBoston Scientific Corp. | 0.01% | 1.24% | 1.23% |
You are not choosing between two funds in isolation.
Whichever of VCSH and VGHAX 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, VCSH or VGHAX?
VCSH has an expense ratio of 0.03% while VGHAX charges 0.27%. VCSH is the cheaper option, by $24 a year on a $10,000 investment.
Which is riskier, VCSH or VGHAX?
VGHAX has been the more volatile fund at 15.3% annualized versus 3.3% for VCSH. Worst drawdown: VCSH -10.8% vs VGHAX -32.7%.
Should I hold both VCSH and VGHAX?
VCSH and VGHAX have a monthly-return correlation of 0.52, 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, VCSH or VGHAX?
VCSH yields 4.47% while VGHAX yields 6.15%, so VGHAX currently pays the higher dividend yield.
Is it better to hold VGHAX or VCSH in a taxable account?
VCSH is an ETF and VGHAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VGHAX better than VCSH?
VCSH has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.