VCSH vs VGSH
Vanguard Short Term Corporate Bond ETF vs Vanguard Short Term Treasury ETF
Quick Verdict
VCSH delivered stronger 1-year returns. VCSH offers more diversification with 2440 holdings.
Side-by-Side Comparison
| Metric | VCSH | VGSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $44.9B | $29.4B | |
| Dividend Yield | 4.44% | 3.87% | |
| Holdings | 2,719 | 94 | |
| YTD Return | +0.86% | +0.81% | |
| 1Y Return | +2.85% | +2.53% | |
| 3Y Return (annualized) | +5.57% | +4.29% | |
| 5Y Return (annualized) | +2.33% | +1.90% | |
| Volatility (annualized) | 2.6% | 1.4% | |
| Max Drawdown | -12.9% | -6.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 19, 2009 | Nov 19, 2009 |
VCSH vs VGSH Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US). Over the past year VCSH returned +2.85% while VGSH returned +2.53%. Year to date, VCSH is up 0.86% versus a gain of 0.81% for VGSH.
Over three years, VCSH compounded at +5.57% per year against +4.29% for VGSH; over five years the annualized figures are +2.33% and +1.90% respectively. Across the full 17-year window we track, VCSH has the edge at +1.29% annualized vs +0.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VCSH has been the more volatile fund, with annualized monthly volatility of 2.6% compared with 1.4% for VGSH. 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 -6.7% for VGSH. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCSH charges 0.03% per year while VGSH charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCSH currently yields 4.44% against 3.87% for VGSH.
Holdings Overlap
VCSH and VGSH share 0 holdings out of 2516 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 VGSH?
VCSH has an expense ratio of 0.03% while VGSH charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VCSH or VGSH?
Over the past year VCSH returned +2.85% vs +2.53% for VGSH, so VCSH leads on 1-year performance. Over the longest common window we track (17 years), VCSH annualized +1.29% vs +0.71% for VGSH. Past performance does not guarantee future results.
Which is riskier, VCSH or VGSH?
VCSH has been the more volatile fund at 2.6% annualized versus 1.4% for VGSH. Worst drawdown: VCSH -12.9% vs VGSH -6.7%.
Should I hold both VCSH and VGSH?
VCSH and VGSH have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCSH and VGSH?
VCSH and VGSH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2516 unique securities.
Which pays a higher dividend, VCSH or VGSH?
VCSH yields 4.44% while VGSH yields 3.87%, so VCSH currently pays the higher dividend yield.
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