VCSH vs VTIP
Vanguard Short Term Corporate Bond ETF vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP delivered stronger 1-year returns. VCSH offers more diversification with 2440 holdings.
Side-by-Side Comparison
| Metric | VCSH | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $44.9B | $19.3B | |
| Dividend Yield | 4.44% | 3.60% | |
| Holdings | 2,719 | 27 | |
| YTD Return | +0.74% | +1.87% | |
| 1Y Return | +3.00% | +3.01% | |
| 3Y Return (annualized) | +5.33% | +5.37% | |
| 5Y Return (annualized) | +2.32% | +3.39% | |
| Volatility (annualized) | 2.6% | 2.4% | |
| Max Drawdown | -12.9% | -7.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 19, 2009 | Oct 12, 2012 |
VCSH vs VTIP Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year VCSH returned +3.00% while VTIP returned +3.01%. Year to date, VCSH is up 0.74% versus a gain of 1.87% for VTIP.
Over three years, VCSH compounded at +5.33% per year against +5.37% for VTIP; over five years the annualized figures are +2.32% and +3.39% respectively. Across the full 14-year window we track, VTIP has the edge at +1.58% annualized vs +1.29%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VCSH has been the more volatile fund, with annualized monthly volatility of 2.6% compared with 2.4% for VTIP. 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 -7.1% for VTIP. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VCSH charges 0.03% per year while VTIP charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCSH currently yields 4.44% against 3.60% for VTIP.
Holdings Overlap
VCSH and VTIP share 0 holdings out of 2463 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 VTIP?
VCSH has an expense ratio of 0.03% while VTIP charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VCSH or VTIP?
Over the past year VCSH returned +3.00% vs +3.01% for VTIP, so VTIP leads on 1-year performance. Over the longest common window we track (14 years), VCSH annualized +1.29% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, VCSH or VTIP?
VCSH has been the more volatile fund at 2.6% annualized versus 2.4% for VTIP. Worst drawdown: VCSH -12.9% vs VTIP -7.1%.
Should I hold both VCSH and VTIP?
VCSH and VTIP have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCSH and VTIP?
VCSH and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2463 unique securities.
Which pays a higher dividend, VCSH or VTIP?
VCSH yields 4.44% while VTIP yields 3.60%, so VCSH currently pays the higher dividend yield.
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