VCSH vs XLF
Vanguard Short Term Corporate Bond ETF vs State Street Financial Select Sector SPDR ETF
Which is better, VCSH or XLF?
Short Term Bond against Large Cap Value.
VCSH has a lower expense ratio. XLF led over 1Y, 3Y, 5Y and the full window.
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 | XLF |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $52.0B | $54.2B |
| Dividend Yield | 4.47% | 1.40% |
| Holdings | 3,023 | 80 |
| YTD Return | -0.02% | +0.15%Best |
| 1Y Return | +1.23% | +2.69%Best |
| 3Y Return (annualized) | +5.28% | +19.09%Best |
| 5Y Return (annualized) | +2.14% | +9.27%Best |
| Volatility (annualized) | 2.6%Best | 19.2% |
| Max Drawdown | -12.9%Best | -43.3% |
| $10,000 over 5 years | $11,117 | $15,578Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Fixed Income | Equity |
| Style | Short Term Bond | Large Cap Value |
| Inception | Nov 19, 2009 | Dec 16, 1998 |
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 23, 2026 (16.8 years).
VCSH vs XLF 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 XLF Performance
Vanguard Short Term Corporate Bond ETF (VCSH) is an ETF from Vanguard (US) and State Street Financial Select Sector SPDR ETF (XLF) is an ETF from SPDR State Street Global Advisors. Over the past year VCSH returned +1.23% while XLF returned +2.69%. Year to date, VCSH is down 0.02% versus a gain of 0.15% for XLF.
Over three years, VCSH compounded at +5.28% per year against +19.09% for XLF; over five years the annualized figures are +2.14% and +9.27% respectively. Across the full 17-year window we track, XLF has the edge at +8.66% annualized vs +1.23%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 19.2% 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 -43.3% for XLF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.36. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VCSH charges 0.03% per year while XLF charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, VCSH currently yields 4.47% against 1.40% for XLF.
Holdings Overlap
At least 0.3% of XLF'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.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 1,545 positions we hold weights for in VCSH and 77 in XLF, against full books of 3,023 and 80.
Top Shared Holdings
| Stock | Weight in VCSH | Weight in XLF | Difference |
|---|---|---|---|
| NMFSsi Us Gov Money Market Class | 0.04% | 0.25% | 0.21% |
You are not choosing between two funds in isolation.
Whichever of VCSH and XLF 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 XLF?
VCSH has an expense ratio of 0.03% while XLF charges 0.08%. VCSH is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VCSH or XLF?
Over the past year VCSH returned +1.23% vs +2.69% for XLF, so XLF leads on 1-year performance. Over the longest common window we track (17 years), VCSH annualized +1.23% vs +8.66% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VCSH or XLF?
XLF has been the more volatile fund at 19.2% annualized versus 2.6% for VCSH. Worst drawdown: VCSH -12.9% vs XLF -43.3%.
Should I hold both VCSH and XLF?
VCSH and XLF have a monthly-return correlation of 0.36, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VCSH or XLF?
VCSH yields 4.47% while XLF yields 1.40%, so VCSH currently pays the higher dividend yield.
Is XLF better than VCSH?
VCSH has a lower expense ratio. XLF 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.