VCSH vs VIG
Vanguard Short Term Corporate Bond ETF vs Vanguard Dividend Appreciation ETF
Quick Verdict
VCSH has a lower expense ratio. VIG delivered stronger 1-year returns. VCSH offers more diversification with 2440 holdings.
Side-by-Side Comparison
| Metric | VCSH | VIG | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $44.9B | $110.2B | |
| Dividend Yield | 4.44% | 1.79% | |
| Holdings | 2,719 | 335 | |
| YTD Return | +0.63% | +12.26% | |
| 1Y Return | +2.92% | +20.77% | |
| 3Y Return (annualized) | +5.50% | +16.59% | |
| 5Y Return (annualized) | +2.29% | +10.76% | |
| Volatility (annualized) | 2.6% | 13.3% | |
| Max Drawdown | -12.9% | -48.2% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Apr 21, 2006 |
VCSH vs VIG Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US) and Vanguard Dividend Appreciation ETF (VIG) is a ETF from Vanguard (US). Over the past year VCSH returned +2.92% while VIG returned +20.77%. Year to date, VCSH is up 0.63% versus a gain of 12.26% for VIG.
Over three years, VCSH compounded at +5.50% per year against +16.59% for VIG; over five years the annualized figures are +2.29% and +10.76% respectively. Across the full 17-year window we track, VIG has the edge at +8.69% annualized vs +1.28%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VIG has been the more volatile fund, with annualized monthly volatility of 13.3% 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 -48.2% for VIG. 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 VIG charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VCSH currently yields 4.44% against 1.79% for VIG.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, VCSH or VIG?
VCSH has an expense ratio of 0.03% while VIG charges 0.04%. VCSH is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VCSH or VIG?
Over the past year VCSH returned +2.92% vs +20.77% for VIG, so VIG leads on 1-year performance. Over the longest common window we track (17 years), VCSH annualized +1.28% vs +8.69% for VIG. Past performance does not guarantee future results.
Which is riskier, VCSH or VIG?
VIG has been the more volatile fund at 13.3% annualized versus 2.6% for VCSH. Worst drawdown: VCSH -12.9% vs VIG -48.2%.
Should I hold both VCSH and VIG?
VCSH and VIG 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 VIG?
VCSH and VIG share 2 common holdings with a 0.0% weight overlap. Combined, they hold 2769 unique securities.
Which pays a higher dividend, VCSH or VIG?
VCSH yields 4.44% while VIG yields 1.79%, so VCSH currently pays the higher dividend yield.
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