VCSH vs VGIT

Quick Verdict

VCSH delivered stronger 1-year returns. VCSH offers more diversification with 2440 holdings.

Lower Fees: TiedHigher Returns: VCSHMore Diversified: VCSH

Side-by-Side Comparison

MetricVCSHVGITWinner
Expense Ratio0.03%0.03%
AUM$44.9B$42.1B
Dividend Yield4.44%3.84%
Holdings2,719106
YTD Return+0.74%-0.62%
1Y Return+3.00%+1.32%
3Y Return (annualized)+5.33%+3.60%
5Y Return (annualized)+2.32%-0.12%
Volatility (annualized)2.6%4.3%
Max Drawdown-12.9%-17.2%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeFixed Income
InceptionNov 19, 2009Nov 19, 2009

VCSH vs VGIT Performance

Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US) and Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US). Over the past year VCSH returned +3.00% while VGIT returned +1.32%. Year to date, VCSH is up 0.74% versus a loss of 0.62% for VGIT.

Over three years, VCSH compounded at +5.33% per year against +3.60% for VGIT; over five years the annualized figures are +2.32% and -0.12% respectively. Across the full 17-year window we track, VCSH has the edge at +1.29% annualized vs +0.75%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VGIT has been the more volatile fund, with annualized monthly volatility of 4.3% 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 -17.2% for VGIT. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VCSH charges 0.03% per year while VGIT charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCSH currently yields 4.44% against 3.84% for VGIT.

Holdings Overlap

0.0%overlap

VCSH and VGIT share 0 holdings out of 2524 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 VGIT?

VCSH has an expense ratio of 0.03% while VGIT charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, VCSH or VGIT?

Over the past year VCSH returned +3.00% vs +1.32% for VGIT, so VCSH leads on 1-year performance. Over the longest common window we track (17 years), VCSH annualized +1.29% vs +0.75% for VGIT. Past performance does not guarantee future results.

Which is riskier, VCSH or VGIT?

VGIT has been the more volatile fund at 4.3% annualized versus 2.6% for VCSH. Worst drawdown: VCSH -12.9% vs VGIT -17.2%.

Should I hold both VCSH and VGIT?

VCSH and VGIT have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VCSH and VGIT?

VCSH and VGIT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2524 unique securities.

Which pays a higher dividend, VCSH or VGIT?

VCSH yields 4.44% while VGIT yields 3.84%, so VCSH currently pays the higher dividend yield.

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