VCSH vs VGK
Vanguard Short Term Corporate Bond ETF vs Vanguard FTSE Europe ETF
Quick Verdict
VCSH has a lower expense ratio. VGK delivered stronger 1-year returns. VCSH offers more diversification with 2,719 holdings.
Side-by-Side Comparison
| Metric | VCSH | VGK | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $44.9B | $30.0B | |
| Dividend Yield | 4.44% | 2.94% | |
| Holdings | 2,719 | 1,251 | |
| YTD Return | +0.86% | +11.25% | |
| 1Y Return | +2.85% | +21.15% | |
| 3Y Return (annualized) | +5.57% | +18.16% | |
| 5Y Return (annualized) | +2.33% | +9.15% | |
| Volatility (annualized) | 2.6% | 18.5% | |
| Max Drawdown | -12.9% | -67.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Mar 4, 2005 |
VCSH vs VGK Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US) and Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US). Over the past year VCSH returned +2.85% while VGK returned +21.15%. Year to date, VCSH is up 0.86% versus a gain of 11.25% for VGK.
Over three years, VCSH compounded at +5.57% per year against +18.16% for VGK; over five years the annualized figures are +2.33% and +9.15% respectively. Across the full 17-year window we track, VGK has the edge at +3.69% annualized vs +1.29%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGK has been the more volatile fund, with annualized monthly volatility of 18.5% 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 -67.3% for VGK. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCSH charges 0.03% per year while VGK charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, VCSH currently yields 4.44% against 2.94% for VGK.
Holdings Overlap
VCSH and VGK share 0 holdings out of 3398 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 VGK?
VCSH has an expense ratio of 0.03% while VGK charges 0.06%. VCSH is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VCSH or VGK?
Over the past year VCSH returned +2.85% vs +21.15% for VGK, so VGK leads on 1-year performance. Over the longest common window we track (17 years), VCSH annualized +1.29% vs +3.69% for VGK. Past performance does not guarantee future results.
Which is riskier, VCSH or VGK?
VGK has been the more volatile fund at 18.5% annualized versus 2.6% for VCSH. Worst drawdown: VCSH -12.9% vs VGK -67.3%.
Should I hold both VCSH and VGK?
VCSH and VGK have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCSH and VGK?
VCSH and VGK share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3398 unique securities.
Which pays a higher dividend, VCSH or VGK?
VCSH yields 4.44% while VGK yields 2.94%, so VCSH currently pays the higher dividend yield.
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