VCSH vs VNQ
Vanguard Short Term Corporate Bond ETF vs Vanguard Real Estate ETF
Which is better, VCSH or VNQ?
Short Term Bond against Mid Cap Blend.
VCSH has a lower expense ratio. VCSH led over 5Y, VNQ over 1Y, 3Y and the full window.
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 | VNQ |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.13% |
| AUM | $52.0B | $39.3B |
| Dividend Yield | 4.47% | 3.49% |
| Holdings | 3,023 | 144 |
| YTD Return | +0.37% | +9.19%Best |
| 1Y Return | +1.62% | +5.61%Best |
| 3Y Return (annualized) | +5.36% | +9.40%Best |
| 5Y Return (annualized) | +2.19%Best | +1.41% |
| Volatility (annualized) | 2.6%Best | 17.2% |
| Max Drawdown | -12.9%Best | -42.8% |
| $10,000 over 5 years | $11,144Best | $10,725 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Short Term Bond | Mid Cap Blend |
| Inception | Nov 19, 2009 | Sep 23, 2004 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Sep 11, 2026 (16.8 years).
VCSH vs VNQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 16.8 years both funds cover.
VCSH vs VNQ Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is an ETF from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US). Over the past year VCSH returned +1.62% while VNQ returned +5.61%. Year to date, VCSH is up 0.37% versus a gain of 9.19% for VNQ.
Over three years, VCSH compounded at +5.36% per year against +9.40% for VNQ; over five years the annualized figures are +2.19% and +1.41% respectively. Across the full 17-year window we track, VNQ has the edge at +6.20% annualized vs +1.26%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 17.2% 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 -42.8% for VNQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.61. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VCSH charges 0.03% per year while VNQ charges 0.13%. On a $10,000 position that is $3 vs $13 annually, a gap of $10 per year that compounds over a long holding period. On income, VCSH currently yields 4.47% against 3.49% for VNQ.
Holdings Overlap
We hold position weights for 557 holdings in VCSH and 144 in VNQ, totalling 20.6% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 557 positions we hold weights for in VCSH and 144 in VNQ, against full books of 3,023 and 144.
You are not choosing between two funds in isolation.
Whichever of VCSH and VNQ 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 VNQ?
VCSH has an expense ratio of 0.03% while VNQ charges 0.13%. VCSH is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, VCSH or VNQ?
Over the past year VCSH returned +1.62% vs +5.61% for VNQ, so VNQ leads on 1-year performance. Over the longest common window we track (17 years), VCSH annualized +1.26% vs +6.20% for VNQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VCSH or VNQ?
VNQ has been the more volatile fund at 17.2% annualized versus 2.6% for VCSH. Worst drawdown: VCSH -12.9% vs VNQ -42.8%.
Should I hold both VCSH and VNQ?
VCSH and VNQ have a monthly-return correlation of 0.61, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VCSH or VNQ?
VCSH yields 4.47% while VNQ yields 3.49%, so VCSH currently pays the higher dividend yield.
Is VNQ better than VCSH?
VCSH has a lower expense ratio. VCSH led over 5Y, VNQ over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.