VCSH vs VTBNX
Vanguard Short Term Corporate Bond ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Which is better, VCSH or VTBNX?
Short Term Bond against Long Term High Quality.
VTBNX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.95.
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 | VTBNX |
|---|---|---|
| Expense Ratio | 0.03% | 0.02%Best |
| AUM | $45.0B | $207.3B |
| Dividend Yield | 4.46% | 3.79% |
| Holdings | 3,023 | 14,920 |
| YTD Price Return | -1.98% | -2.91% |
| 1Y Price Return | -1.99% | -2.81% |
| 3Y Price Return (annualized) | +1.24% | +0.40% |
| 5Y Price Return (annualized) | -1.08% | -3.57% |
| Volatility (annualized) | 3.3%Best | 6.3% |
| Max Drawdown | -11.3%Best | -21.5% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | Short Term Bond | Long Term High Quality |
| Inception | Nov 19, 2009 | Feb 17, 2009 |
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 4.46% and VTBNX 3.79%.
Volatility and max drawdown are measured over the window both funds cover: Sep 7, 2021 to Sep 4, 2026 (5 years).
VCSH vs VTBNX Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is an ETF from Vanguard (US) and Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US). Over the past year VCSH's price moved -1.99% and VTBNX's -2.81%, before the income each one paid out.
Over three years, VCSH compounded at +1.24% per year against +0.40% for VTBNX; over five years the annualized figures are -1.08% and -3.57% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTBNX has been the more volatile fund, with annualized monthly volatility of 6.3% 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 -11.3% for VCSH and -21.5% for VTBNX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.95. 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 VTBNX 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 3.79% for VTBNX.
Structure and taxes
VTBNX 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 557 holdings in VCSH and 12,728 in VTBNX, totalling 20.6% and 64.4% 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, 471 positions appear in both.
The two holdings books were reported 91 days apart, VCSH as of Jun 30, 2026 and VTBNX as of Mar 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
471 positions in common, counted across the 557 positions we hold weights for in VCSH and 12,728 in VTBNX, against full books of 3,023 and 14,920.
Top Shared Holdings
| Stock | Weight in VCSH | Weight in VTBNX | Difference |
|---|---|---|---|
| ABBV 3.2 11/21/29Abbvie Inc Sr Nt Accd Inv 3.2 2029-11-21 | 0.20% | 0.02% | 0.18% |
| CVS 4.3 03/25/28Cvs Health Corp 4.3 03/25/2028 | 0.20% | 0.01% | 0.19% |
| WFC V5.574 07/25/29 | 0.18% | 0.01% | 0.17% |
| AMGN 5.15 03/02/28Amgen Inc 5.15 03/02/2028 | 0.17% | 0.01% | 0.16% |
| WFC V5.244 01/24/31Wells Fargo & Company Mtn 5.24% Jan 24, 2031 | 0.14% | 0.02% | 0.12% |
| HSBC V7.39 11/03/28Hsbc Holdings Plc Sr Unsecured 11/28 Var 7.39 47060 | 0.16% | 0.00% | 0.16% |
| GS V5.218 04/23/31Goldman Sachs Group Inc/The 5.22 04/23/2031 | 0.13% | 0.03% | 0.10% |
| MS V2.699 01/22/31 GMorgan Stanley 2.699 01/22/2031 | 0.15% | 0.01% | 0.14% |
| CSCO 4.85 02/26/29Cisco Systems Inc 4.85% 26Feb2029 | 0.12% | 0.03% | 0.09% |
| IBM 3.5 05/15/29International Business Machines Corp 3.5 05/15/2029 | 0.13% | 0.01% | 0.12% |
You are not choosing between two funds in isolation.
Whichever of VCSH and VTBNX 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 VTBNX?
VCSH has an expense ratio of 0.03% while VTBNX charges 0.02%. VTBNX is the cheaper option, by $1 a year on a $10,000 investment.
Which is riskier, VCSH or VTBNX?
VTBNX has been the more volatile fund at 6.3% annualized versus 3.3% for VCSH. Worst drawdown: VCSH -11.3% vs VTBNX -21.5%.
Should I hold both VCSH and VTBNX?
VCSH and VTBNX have a monthly-return correlation of 0.95, 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 VTBNX?
VCSH yields 4.46% while VTBNX yields 3.79%, so VCSH currently pays the higher dividend yield.
Is it better to hold VTBNX or VCSH in a taxable account?
VCSH is an ETF and VTBNX 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 VTBNX better than VCSH?
VTBNX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.95. Which one suits a particular account depends on what it is for. This is information, not a recommendation.