VCSH vs VMLUX
Vanguard Short Term Corporate Bond ETF vs Vanguard Limited Term Tax-Exempt Fund admiral class
Quick Verdict
VCSH has a lower expense ratio. VCSH delivered stronger 1-year returns. VCSH offers more diversification with 2440 holdings.
Side-by-Side Comparison
| Metric | VCSH | VMLUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $44.9B | $34.1B | |
| Dividend Yield | 4.44% | 2.89% | |
| Holdings | 2,719 | 7,110 | |
| YTD Return | +0.63% | -0.64% | |
| 1Y Return | +2.92% | -0.36% | |
| 3Y Return (annualized) | +5.50% | +0.77% | |
| 5Y Return (annualized) | +2.29% | -0.58% | |
| Volatility (annualized) | 2.6% | 2.8% | |
| Max Drawdown | -12.9% | -8.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Tax Preferred | |
| Inception | Nov 19, 2009 | Feb 12, 2001 |
VCSH vs VMLUX Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US) and Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US). Over the past year VCSH returned +2.92% while VMLUX returned -0.36%. Year to date, VCSH is up 0.63% versus a loss of 0.64% for VMLUX.
Over three years, VCSH compounded at +5.50% per year against +0.77% for VMLUX; over five years the annualized figures are +2.29% and -0.58% respectively. Across the full 5-year window we track, VCSH has the edge at +1.28% annualized vs -0.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VMLUX has been the more volatile fund, with annualized monthly volatility of 2.8% 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 -8.5% for VMLUX. 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VCSH charges 0.03% per year while VMLUX charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, VCSH currently yields 4.44% against 2.89% for VMLUX.
Holdings Overlap
VCSH and VMLUX share 0 holdings out of 3355 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 VMLUX?
VCSH has an expense ratio of 0.03% while VMLUX charges 0.09%. VCSH is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VCSH or VMLUX?
Over the past year VCSH returned +2.92% vs -0.36% for VMLUX, so VCSH leads on 1-year performance. Over the longest common window we track (5 years), VCSH annualized +1.28% vs -0.58% for VMLUX. Past performance does not guarantee future results.
Which is riskier, VCSH or VMLUX?
VMLUX has been the more volatile fund at 2.8% annualized versus 2.6% for VCSH. Worst drawdown: VCSH -12.9% vs VMLUX -8.5%.
Should I hold both VCSH and VMLUX?
VCSH and VMLUX have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCSH and VMLUX?
VCSH and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3355 unique securities.
Which pays a higher dividend, VCSH or VMLUX?
VCSH yields 4.44% while VMLUX yields 2.89%, so VCSH currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.