VCSH vs VIITX
Vanguard Short Term Corporate Bond ETF vs Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class
Quick Verdict
VIITX has a lower expense ratio. VCSH delivered stronger 1-year returns. VCSH offers more diversification with 3,023 holdings.
Side-by-Side Comparison
| Metric | VCSH | VIITX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.02% | |
| AUM | $52.0B | - | |
| Dividend Yield | 4.46% | 4.59% | |
| Holdings | 3,023 | 2,599 | |
| YTD Return | +1.10% | -1.66% | |
| 1Y Return | +3.32% | -1.16% | |
| 3Y Return (annualized) | +5.75% | +0.81% | |
| 5Y Return (annualized) | +2.38% | -2.27% | |
| Volatility (annualized) | 2.6% | 4.2% | |
| Max Drawdown | -12.9% | -15.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 19, 2009 | Dec 1, 1997 |
VCSH vs VIITX Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is a 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 returned +3.32% while VIITX returned -1.16%. Year to date, VCSH is up 1.10% versus a loss of 1.66% for VIITX.
Over three years, VCSH compounded at +5.75% per year against +0.81% for VIITX; over five years the annualized figures are +2.38% and -2.27% respectively. Across the full 5-year window we track, VCSH has the edge at +1.30% annualized vs -2.27%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VIITX has been the more volatile fund, with annualized monthly volatility of 4.2% 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 -15.0% for VIITX. 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 0.96. 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 4.46% against 4.59% for VIITX.
Holdings Overlap
VCSH and VIITX share 59 holdings out of 1683 unique holdings combined, representing a 2.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VCSH | Weight in VIITX | Difference |
|---|---|---|---|
| PNC V5.582 06/12/29 | 0.10% | 0.21% | 0.11% |
| JPM V5.299 07/24/29 | 0.12% | 0.17% | 0.05% |
| WFC V5.244 01/24/31 | 0.14% | 0.08% | 0.06% |
| PM 5.125 11/17/27 | Pro | Pro | Pro |
| JPM V2.069 06/01/29 | Pro | Pro | Pro |
| HSBC V7.39 11/03/28 | Pro | Pro | Pro |
| NOC 3.25 01/15/28 | Pro | Pro | Pro |
| SUMIBK 1.902 09/17/2 | Pro | Pro | Pro |
| ABIBB 3.5 06/01/30 | Pro | Pro | Pro |
| PNC 2.55 01/22/30 | Pro | Pro | Pro |
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. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VCSH or VIITX?
Over the past year VCSH returned +3.32% vs -1.16% for VIITX, so VCSH leads on 1-year performance. Over the longest common window we track (5 years), VCSH annualized +1.30% vs -2.27% for VIITX. Past performance does not guarantee future results.
Which is riskier, VCSH or VIITX?
VIITX has been the more volatile fund at 4.2% annualized versus 2.6% for VCSH. Worst drawdown: VCSH -12.9% vs VIITX -15.0%.
Should I hold both VCSH and VIITX?
VCSH and VIITX have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VCSH and VIITX?
VCSH and VIITX share 59 common holdings with a 2.2% weight overlap. Combined, they hold 1683 unique securities.
Which pays a higher dividend, VCSH or VIITX?
VCSH yields 4.46% while VIITX yields 4.59%, so VIITX currently pays the higher dividend yield.
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