VCSH vs VYM

VCSH vs VYM

Which is better, VCSH or VYM?

Short Term Bond against Large Cap Value.

VCSH has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VCSHHigher Returns: VYM

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

MetricVCSHVYM
Expense Ratio0.03%Best0.04%
AUM$52.0B$81.6B
Dividend Yield4.47%2.22%
Holdings3,023613
YTD Return+0.41%+11.47%Best
1Y Return+1.69%+15.94%Best
3Y Return (annualized)+5.38%+18.03%Best
5Y Return (annualized)+2.20%+12.35%Best
Volatility (annualized)2.6%Best13.1%
Max Drawdown-12.9%Best-35.7%
$10,000 over 5 years$11,149$17,901Best
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
StyleShort Term BondLarge Cap Value
InceptionNov 19, 2009Nov 10, 2006

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 21, 2026 (16.8 years).

VCSH vs VYM 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

VCSH vs VYM Performance

Vanguard Short Term Corporate Bond ETF (VCSH) is an ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VCSH returned +1.69% while VYM returned +15.94%. Year to date, VCSH is up 0.41% versus a gain of 11.47% for VYM.

Over three years, VCSH compounded at +5.38% per year against +18.03% for VYM; over five years the annualized figures are +2.20% and +12.35% respectively. Across the full 17-year window we track, VYM has the edge at +9.91% annualized vs +1.26%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 13.1% 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.46. They move together some of the time, and apart the rest.

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 4.47% against 2.22% for VYM.

Holdings Overlap

VYM already in VCSH3.5%

At least 3.5% of VYM's money is in holdings VCSH also owns.

Stated as a floor: for VCSH, our book for it covers 62.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

VYM and VCSH share little of their money.

11 positions in common, counted across the 1,545 positions we hold weights for in VCSH and 557 in VYM, against full books of 3,023 and 613.

Top Shared Holdings

StockWeight in VCSHWeight in VYMDifference
TXNTexas Instrument Inc0.02%1.02%1.00%
CURVVanguard Market Liquidity Fund0.78%0.15%0.63%
PEPPepsico Inc.0.05%0.77%0.72%
TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#5855580.19%0.34%0.15%
MOAltria Group Inc0.04%0.46%0.42%
EOGEog Resources Inc0.03%0.32%0.29%
OKEOneok Inc.0.04%0.23%0.19%
ESEversource Energ0.02%0.11%0.09%
SFStifel Finl Corp0.01%0.05%0.04%
NOVNov Inc Common Stock0.02%0.03%0.01%

You are not choosing between two funds in isolation.

Whichever of VCSH and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

VCSHVYM

Free for up to 10 holdings. No account needed.

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, by $1 a year on a $10,000 investment.

Which performed better, VCSH or VYM?

Over the past year VCSH returned +1.69% vs +15.94% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), VCSH annualized +1.26% vs +9.91% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, VCSH or VYM?

VYM has been the more volatile fund at 13.1% annualized versus 2.6% for VCSH. Worst drawdown: VCSH -12.9% vs VYM -35.7%.

Should I hold both VCSH and VYM?

VCSH and VYM have a monthly-return correlation of 0.46, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between VCSH and VYM?

At least 3.5% of VYM's money is in holdings VCSH also owns. Our book for VCSH is partial, so the real figure is this or higher. They hold 11 positions in common, counted across the 1,545 positions we hold weights for in VCSH and 557 in VYM.

Which pays a higher dividend, VCSH or VYM?

VCSH yields 4.47% while VYM yields 2.22%, so VCSH currently pays the higher dividend yield.

Is VYM better than VCSH?

VCSH has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.