VCSH vs VIITX
Vanguard Short Term Corporate Bond ETF vs Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class
Which is better, VCSH or VIITX?
Short Term Bond against Intermediate Term Bond.
VIITX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.96.
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 | VIITX |
|---|---|---|
| Expense Ratio | 0.03% | 0.02%Best |
| AUM | $44.9B | - |
| Dividend Yield | 4.47% | 4.60% |
| Holdings | 3,028 | 2,710 |
| YTD Price Return | -3.44% | -4.53% |
| 1Y Price Return | -3.48% | -4.57% |
| 3Y Price Return (annualized) | +1.08% | +0.31% |
| 5Y Price Return (annualized) | -1.34% | -2.77% |
| Volatility (annualized) | 3.3%Best | 4.3% |
| Max Drawdown | -11.0%Best | -14.6% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | Short Term Bond | Intermediate Term Bond |
| Inception | Nov 19, 2009 | Dec 1, 1997 |
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 VIITX 4.60%.
Volatility and max drawdown are measured over the window both funds cover: Oct 4, 2021 to Oct 1, 2026 (5 years).
VCSH vs VIITX Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is an ETF from Vanguard (US) and Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US). Over the past year VCSH's price moved -3.48% and VIITX's -4.57%, before the income each one paid out.
Over three years, VCSH compounded at +1.08% per year against +0.31% for VIITX; over five years the annualized figures are -1.34% and -2.77% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VIITX has been the more volatile fund, with annualized monthly volatility of 4.3% 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 -11.0% for VCSH and -14.6% for VIITX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VCSH charges 0.03% per year while VIITX charges 0.02%. On a $10,000 position that is $3 vs $2 annually, a gap of $1 per year that compounds over a long holding period. On income, VCSH currently yields 4.47% against 4.60% for VIITX.
Structure and taxes
VIITX 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 691 in VIITX, totalling 62.8% and 32.7% 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, 151 positions appear in both.
151 positions in common, counted across the 1,545 positions we hold weights for in VCSH and 691 in VIITX, against full books of 3,028 and 2,710.
Top Shared Holdings
| Stock | Weight in VCSH | Weight in VIITX | Difference |
|---|---|---|---|
| BAC V3.419 12/20/28Bank Of America Corp 3.419 12/20/2028 | 0.24% | 0.10% | 0.14% |
| PNC V5.582 06/12/29Pnc Financial 5.582 06/12/2029 | 0.10% | 0.20% | 0.10% |
| PNC V5.492 05/14/30Pnc Financial Services Group Inc/The 5.492 2030-05-14 | 0.06% | 0.22% | 0.16% |
| BAC V2.687 04/22/32Bank Of America Corp 2.69% 22Apr2032 | 0.16% | 0.11% | 0.05% |
| TMUST-Mobile Usa, Inc. 3.875% 15-Apr-2030 | 0.19% | 0.06% | 0.13% |
| JPM V4.995 07/22/30Jpmorganchase 4.995% 07/22/2030 | 0.15% | 0.09% | 0.06% |
| JPM V5.299 07/24/29Jpmorgan Chase 5.299 2029-07-24 | 0.09% | 0.15% | 0.06% |
| BAC V5.202 04/25/29Bank Of Amer Crp 5.202 04/25/2029 | 0.16% | 0.08% | 0.08% |
| MS V5.042 07/19/30Morgan Stanley 5.04 2030-07-19 | 0.11% | 0.12% | 0.01% |
| BAC V2.299 07/21/32Bank Of America Corp 2.299 07/21/2032 | 0.13% | 0.08% | 0.05% |
You are not choosing between two funds in isolation.
Whichever of VCSH and VIITX 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 VIITX?
VCSH has an expense ratio of 0.03% while VIITX charges 0.02%. VIITX is the cheaper option, by $1 a year on a $10,000 investment.
Which is riskier, VCSH or VIITX?
VIITX has been the more volatile fund at 4.3% annualized versus 3.3% for VCSH. Worst drawdown: VCSH -11.0% vs VIITX -14.6%.
Should I hold both VCSH and VIITX?
VCSH and VIITX have a monthly-return correlation of 0.96, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, VCSH or VIITX?
VCSH yields 4.47% while VIITX yields 4.60%, so VIITX currently pays the higher dividend yield.
Is it better to hold VIITX or VCSH in a taxable account?
VCSH is an ETF and VIITX 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 VIITX better than VCSH?
VIITX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.96. Which one suits a particular account depends on what it is for. This is information, not a recommendation.