VCSH vs VYM
Vanguard Short Term Corporate Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VCSH has a lower expense ratio. VYM delivered stronger 1-year returns. VCSH offers more diversification with 2440 holdings.
Side-by-Side Comparison
| Metric | VCSH | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $44.9B | $79.0B | |
| Dividend Yield | 4.44% | 2.86% | |
| Holdings | 2,719 | 568 | |
| YTD Return | +0.63% | +16.16% | |
| 1Y Return | +2.92% | +26.05% | |
| 3Y Return (annualized) | +5.50% | +18.43% | |
| 5Y Return (annualized) | +2.29% | +12.21% | |
| Volatility (annualized) | 2.6% | 14.6% | |
| Max Drawdown | -12.9% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Nov 10, 2006 |
VCSH vs VYM Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VCSH returned +2.92% while VYM returned +26.05%. Year to date, VCSH is up 0.63% versus a gain of 16.16% for VYM.
Over three years, VCSH compounded at +5.50% per year against +18.43% for VYM; over five years the annualized figures are +2.29% and +12.21% respectively. Across the full 17-year window we track, VYM has the edge at +7.09% annualized vs +1.28%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCSH charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VCSH currently yields 4.44% against 2.86% for VYM.
Holdings Overlap
VCSH and VYM share 5 holdings out of 2993 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VCSH or VYM?
VCSH has an expense ratio of 0.03% while VYM charges 0.04%. VCSH is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VCSH or VYM?
Over the past year VCSH returned +2.92% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), VCSH annualized +1.28% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, VCSH or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 2.6% for VCSH. Worst drawdown: VCSH -12.9% vs VYM -58.8%.
Should I hold both VCSH and VYM?
VCSH and VYM have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCSH and VYM?
VCSH and VYM share 5 common holdings with a 0.1% weight overlap. Combined, they hold 2993 unique securities.
Which pays a higher dividend, VCSH or VYM?
VCSH yields 4.44% while VYM yields 2.86%, so VCSH currently pays the higher dividend yield.
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