VCSH vs VTCIX
Vanguard Short Term Corporate Bond ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX delivered stronger 1-year returns. VCSH offers more diversification with 3,023 holdings.
Side-by-Side Comparison
| Metric | VCSH | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $52.0B | $5.2B | |
| Dividend Yield | 4.46% | 0.93% | |
| Holdings | 3,023 | 836 | |
| YTD Return | +1.10% | +12.08% | |
| 1Y Return | +3.32% | +20.64% | |
| 3Y Return (annualized) | +5.75% | +20.37% | |
| 5Y Return (annualized) | +2.38% | +11.00% | |
| Volatility (annualized) | 2.6% | 16.1% | |
| Max Drawdown | -12.9% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Feb 24, 1999 |
VCSH vs VTCIX Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US) and Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US). Over the past year VCSH returned +3.32% while VTCIX returned +20.64%. Year to date, VCSH is up 1.10% versus a gain of 12.08% for VTCIX.
Over three years, VCSH compounded at +5.75% per year against +20.37% for VTCIX; over five years the annualized figures are +2.38% and +11.00% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.00% annualized vs +1.30%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTCIX has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -26.0% for VTCIX. 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCSH charges 0.03% per year while VTCIX charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCSH currently yields 4.46% against 0.93% for VTCIX.
Holdings Overlap
VCSH and VTCIX share 1 holdings out of 1381 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VCSH | Weight in VTCIX | Difference |
|---|---|---|---|
| CNP | 0.01% | 0.10% | 0.09% |
Frequently Asked Questions
Which is cheaper, VCSH or VTCIX?
VCSH has an expense ratio of 0.03% while VTCIX charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VCSH or VTCIX?
Over the past year VCSH returned +3.32% vs +20.64% for VTCIX, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), VCSH annualized +1.30% vs +11.00% for VTCIX. Past performance does not guarantee future results.
Which is riskier, VCSH or VTCIX?
VTCIX has been the more volatile fund at 16.1% annualized versus 2.6% for VCSH. Worst drawdown: VCSH -12.9% vs VTCIX -26.0%.
Should I hold both VCSH and VTCIX?
VCSH and VTCIX have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCSH and VTCIX?
VCSH and VTCIX share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1381 unique securities.
Which pays a higher dividend, VCSH or VTCIX?
VCSH yields 4.46% while VTCIX yields 0.93%, so VCSH currently pays the higher dividend yield.
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