Relative Intelligence · Investment Grade Bonds
How Vanguard Short-Term Corporate Bond ETF (VCSH) compares with the whole market and its popular alternatives
Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VCSH alone. It places VCSH (Vanguard Short-Term Corporate Bond ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where VCSH stands in the market, and of the alternatives worth a closer look.
Period covered: VCSH's full trading record, from November 2009 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.
Data as of October 20, 2026. Full tables and charts read best on a larger screen.
On this page12 sections
Key findings
- Right nowOver the past 6 months, VCSH fell 0.8% while the S&P 500 rose 9.1%. Its similar funds split over the past 6 months: IGBH (iShares Interest Rate Hedged Long-Term Corporate Bond ETF) rose 2.9%, while LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) fell 3.9%. Consistency ↓
- Fund or market?VCSH fell 0.8% over the past 3 months, in line with the investment grade bonds ETF LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF), which fell 2.4%. The S&P 500 rose 3.9%.
- Long termVCSH turned $10,000 into $12,900 over the past decade, against $42,100 in the S&P 500. VCSH's 10-year return of 28.6% puts it behind 84% of the ETFs with at least $100 million in assets with that much history. The S&P 500 returned 321%. Growth of $10,000 ↓
- In a crashAcross five sell-offs, VCSH has typically lost about 18% as much as the S&P 500. The Covid crash took 12.9% off VCSH, against 33.7% for the S&P 500. That was more than SPSB (State Street SPDR Portfolio Short Term Corporate Bond ETF, 11.8%) but less than VCIT (Vanguard Intermediate-Term Corporate Bond ETF, 16.9%). Crash tests ↓
- DiversificationAgainst the S&P 500, VCSH has a correlation of 0.60 over 5 years, less closely than 77% of ETFs with at least $100 million in assets. Next to an index fund it is some diversification, but not a hedge. Over 10 years, VCSH's beta versus the S&P 500 was 0.11: 13% of the S&P 500's gains in rising months and 9% of its losses in falling ones. Market capture ↓
- Better options
- Popular alternatives
- JPST (JPMorgan Ultra-Short Income ETF) earned more than VCSH with less volatility over the past 5 years: 3.9% a year at 0.6% volatility, against 2.3% a year at 2.9%.
- Nearby categories and themes
- NEAR (iShares Short Duration Bond Active ETF, short-term bonds) earned more than VCSH with less volatility over the past 5 years: 3.9% a year at 1.4% volatility, against 2.3% a year at 2.9%.
- Whole market
- Few investments have done better on both counts: only 31 of the 3,633 stocks and funds worth at least $500 million earned more than VCSH with less volatility over the past 5 years, among them SGOV (iShares 0-3 Month Treasury Bond ETF), BIL (State Street SPDR Bloomberg 1-3 Month T-Bill ETF) and JPST (JPMorgan Ultra-Short Income ETF).
How much would $10,000 in VCSH have grown?
This chart tracks a hypothetical $10,000 investment in VCSH over the past 16 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VCSH over the same span and VCSH's popular alternatives, among those that traded for the entire period. A second view covers the past 5 years, the period the better options further down the page are judged on. It shows not only where each investment ended up but also how smooth or uneven the path was.
Note: VCSH began trading on November 23, 2009, so the chart cannot reach back to the dot-com bust or the 2008 financial crisis. It covers the most recent 16 years of VCSH's record, starting at the end of September 2010.
- $10,000 invested in VCSH at the end of September 2010 would have grown to $14,959 by September 2026, less than the $88,503 it would have become in SPY, an S&P 500 fund.
- Seven of the eight other investments on the chart ended ahead of VCSH, and VCIT finished highest, at $17,051.
Choose a period
From the end of September 2010 to the end of September 2026. Hover over a fund in the key to pick out its line. 1,742 of the 2,048 stocks and funds worth at least $500 million that traded the whole period ended ahead of VCSH; the chart shows 5, closest alternatives first. The other 3 lines are popular alternatives, shown for context.
- SPY (S&P 500)$88,503+785% total · +14.6% a year
- VCIT$17,051+70.5% total · +3.4% a year
- IGLB$16,601+66.0% total · +3.2% a year
- CORP$16,549+65.5% total · +3.2% a year
- LQD$16,176+61.8% total · +3.1% a year
- SPIB$15,948+59.5% total · +3.0% a year
- USIG$15,855+58.5% total · +2.9% a year
- IGIB$15,598+56.0% total · +2.8% a year
- VCSH$14,959+49.6% total · +2.5% a year
- SPSB$14,283+42.8% total · +2.3% a year
From the end of September 2021 to the end of September 2026. Hover over a fund in the key to pick out its line. 2,299 of the 3,628 stocks and funds worth at least $500 million that traded the whole period ended ahead of VCSH; the chart shows 5, closest alternatives first. The other 3 lines are popular alternatives, shown for context.
- SPY (S&P 500)$19,000+90.0% total · +13.7% a year
- IGBH$13,114+31.1% total · +5.6% a year
- LQDH$12,989+29.9% total · +5.4% a year
- SHYG$12,457+24.6% total · +4.5% a year
- JPST$12,033+20.3% total · +3.8% a year
- NEAR$12,027+20.3% total · +3.8% a year
- SPSB$11,418+14.2% total · +2.7% a year
- VTIP$11,376+13.8% total · +2.6% a year
- STIP$11,341+13.4% total · +2.5% a year
- VCSH$11,102+11.0% total · +2.1% a year
VCSH at a glance
This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout. These figures serve as the baseline for every comparison that follows.
Note: VCSH began trading on November 23, 2009, so every figure here, including its worst decline, covers only the time since then. None of them reflect the dot-com bust or the 2008 financial crisis.
- VCSH's deepest decline since it began trading in 2009 was 12.9%, in March 2020. It took two months from the low to climb back to its old high.
- Over 16 full calendar years, VCSH's best was 2019, when it returned 7.0%, and its worst was 2022, when it lost 5.5%. It lost money in two of those years.
- VCSH is 1.4% below its all-time high.
The fund
- Issuer
- Vanguard
- Began trading
- November 2009
- Expense ratio
- 0.03%per year
- Assets
- $51B
- Category
- Bonds
Returns
- Past 1 year
- +0.7%total return
- Past 3 years
- +17.0%+5.4% a year
- Past 5 years
- +12.1%+2.3% a year
- Past 10 years
- +28.6%+2.5% a year
- Best calendar year
- +7.0%2019
- Worst calendar year
- −5.5%2022
- Losing years
- 2 of 16full calendar years
Risk
- Volatility
- 2.9%typical yearly swing, 5 years
- Sharpe ratio
- 0.80return per unit of risk, 5 years
- Worst decline ever
- −12.9%Mar 2020 to Mar 2020
- From its all-time high
- −1.4%below the peak
VCSH against the whole market
Where VCSH ranks among every stock and fund, and what across the market has done better.
How does VCSH rank among all ETFs?
This section ranks VCSH on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history. Where the comparisons with its popular alternatives show how VCSH stacks up against its peers, these rankings show where it stands in the market as a whole.
- VCSH's worst decline of the past 10 years ranks in the top 4% of the 951 ETFs with at least $100 million in assets, where the top fell the least.
- VCSH's 3-year return ranks in the bottom 14% of the 1,949 ETFs with at least $100 million in assets with 3 years of history.
Ranked against U.S.-listed ETFs with at least $100M in assets that have enough history for each measure, so the count changes from row to row; smaller ETFs and leveraged funds are left out. Lower volatility and smaller declines rank higher.
| Measure | VCSH | Rank | Standing |
|---|---|---|---|
| 1-year return | +0.7% | 1,946 of 2,485 | bottom 23% |
| 3-year return | +17.0% | 1,678 of 1,949 | bottom 15% |
| 5-year return | +12.1% | 1,223 of 1,560 | bottom 23% |
| 10-year return | +28.6% | 807 of 958 | bottom 17% |
| Volatility, 5 years | 2.9% | 65 of 1,560 | top 4% |
| Sharpe ratio, 5 years | 0.80 | 353 of 1,560 | top 23% |
| Worst decline, past 10 years | −12.9% | 39 of 951 | top 4% |
What has beaten VCSH on both return and risk?
Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer). VCSH sits where the dashed lines cross. Anything in the green box above and to the left earned more than VCSH with smaller swings, a better trade-off over this period on both counts. Past results are no promise, but a name in the box is worth a closer look.
- 31 ETFs worth at least $500 million sit in the green region: each earned more than VCSH over the past 5 years with smaller price swings. That is fewer than 1% of the 3,633 screened. Few investments beat it on both counts.
- Among those with at least half VCSH's swings, JAAA has the best return for its risk: 5.1% a year at 1.7% volatility, 43% less than VCSH's 2.9%, and a Sharpe ratio (return above cash per unit of volatility) of 2.98 against 0.80 for VCSH. FLRT earned the most, 6.0% a year, while still swinging less than VCSH (2.3% against 2.9%).
- Among VCSH's popular alternatives, JPST is in the region. JPST earned 3.9% a year against 2.3% a year for VCSH, at 0.6% volatility, 80% less than VCSH's 2.9%.
Annual return is the annualized total return with dividends reinvested, and volatility the annualized swing in daily prices, both over 5 years. Labeled dots are the strongest picks from the table below and the names called out above, colored by how close they sit to VCSH; faint dots are 7 more of the 31 in the green region (the strongest, one per fund family). 3,633 stocks and funds worth at least $500 million were screened. Hover over a dot for its figures.
- Popular alternatives
- Same and neighboring categories, and shared themes
- The whole market
- Others in the green region
- 1 with more than 1.6× VCSH's volatility is in the table only
Is there a better investment than VCSH?
Investments that beat VCSH over the past 5 years on return, volatility, drawdowns, consistency, crash losses or fees, from its popular alternatives out to the whole market.
- Among VCSH's popular alternatives, JPST earned more than VCSH with less volatility over the past 5 years: 3.9% a year at 0.6% volatility, against 2.3% a year at 2.9%.
- Looking beyond its popular alternatives, NEAR (short-term bonds) earned more than VCSH with less volatility over the past 5 years: 3.9% a year at 1.4% volatility, against 2.3% a year at 2.9%.
- Few investments have done better on both counts: only 31 of the 3,633 stocks and funds worth at least $500 million earned more than VCSH with less volatility over the past 5 years, among them SGOV, BIL and JPST.
How this works
The table below lists investments that beat VCSH over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio. It checks VCSH's popular alternatives first, then the rest of its own and neighboring categories, then every stock and fund worth at least $500 million, and shows the strongest few in each group. The full list of those with a higher return and lower volatility than VCSH follows the table.
Annual return is the annualized total return with dividends reinvested. Annual return, volatility and the Sharpe ratio cover 5 years; the worst decline covers the past 10 years. Green marks a better figure than VCSH's. "On the frontier" means no other option shown or tested earned more with less volatility. Funds that hold the same thing are shown once. Beyond the popular alternatives, nothing with more than 1.5× VCSH's volatility counts as better.
These figures cover the past 5 years. Green marks a better figure than VCSH's.
| Investment | Why it is better | Past 5 years | Downside | Long run | Fit | ||||
|---|---|---|---|---|---|---|---|---|---|
| Annual return?higher is better | Volatility?lower is calmer | Sharpe?return per unit of risk | Worst decline?past 10 years | 10Y returntotal | Corr. with VCSH?lower diversifies more | Expenseper year | |||
| VCSHVanguard Short-Term Corporate Bond ETF · this page | +2.3% | 2.9% | 0.80 | −12.9% | +28.6% | 1.00 | 0.03% | ||
 SPYState Street SPDR S&P 500 ETF · S&P 500 | +12.7% | 17.1% | 0.79 | −33.7% | +321% | 0.60 | 0.09% | ||
| Popular alternativesbest 4 shownThe investments people most often weigh against VCSH. 6 of 21 passed at least one test. | |||||||||
 JPSTJPMorgan Ultra-Short Income ETF · Short-Term Bonds | Higher return, lower volatilityHigher Sharpe, smaller worst decline | +3.9% | 0.6% | 6.34 | −3.3% | — | 0.70 | 0.18% | |
VGSHVanguard Short-Term Treasury ETF · Treasury Bonds | Similar return, lower volatilityHigher Sharpe, smaller worst decline | +1.9% | 2.0% | 0.95 | −5.6% | +18.8% | 0.92 | 0.03% | |
LQDHiShares Interest Rate Hedged Corporate Bond ETF · Bonds | Higher return in most periods | +5.3% | 4.4% | 1.21 | −24.6% | +55.5% | 0.61 | 0.44% | |
SPSBState Street SPDR Portfolio Short Term Corporate Bond ETF · Investment Grade Bonds | Similar return, lower volatility | +2.8% | 2.0% | 1.38 | −11.8% | +29.2% | 0.99 | 0.04% | |
| Same and neighboring categories, and shared themesbest 2 shownEverything else in Investment Grade Bonds and the categories next to it (Treasury Bonds, Core Plus Bonds, Short-Term Bonds, High Yield Bonds), plus VCSH's specific themes. 16 of 48 passed at least one test. | |||||||||
NEARiShares Short Duration Bond Active ETF · Short-Term Bonds | Higher return, lower volatilityHigher return in most periods | +3.9% | 1.4% | 2.71 | −9.6% | +31.8% | 0.75 | 0.25% | |
STIPiShares 0-5 Year TIPS Bond ETF · Treasury Bonds | Higher Sharpe, smaller worst declineHigher return in most periods | +2.6% | 2.8% | 0.94 | −6.5% | +32.4% | 0.74 | 0.03% | |
| The whole marketbest 6 shownEvery other stock and fund worth at least $500 million. 32 of 3,565 passed at least one test. | |||||||||
JAAAJanus Henderson AAA CLO ETF · CLO Bonds | On the frontierHigher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periods | +5.1% | 1.7% | 2.98 | −2.6% | — | 0.33 | 0.20% | |
TBUXT. Rowe Price Ultra Short-Term Bond ETF · Bonds | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periods | +4.1% | 1.1% | 3.85 | −1.8% | — | 0.76 | 0.17% | |
RAVINorthern Trust Ultra-Short Fixed Income ETF · Bonds | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periods | +3.8% | 1.4% | 2.61 | −3.7% | +30.8% | 0.65 | 0.26% | |
USTBVictoryShares Short-Term Bond ETF · Bonds | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periods | +3.6% | 2.0% | 1.73 | −5.3% | — | 0.95 | 0.34% | |
VRIGInvesco Variable Rate Investment Grade ETF · Bonds | On the frontierHigher return, lower volatilityHigher return in most periods | +4.7% | 1.3% | 3.51 | −13.1% | +40.5% | 0.35 | 0.30% | |
STOTState Street DoubleLine Short Duration Total Return Tactical ETF · Bonds | Similar return, lower volatilityHigher Sharpe, smaller worst decline | +2.9% | 1.7% | 1.65 | −6.1% | +26.0% | 0.87 | 0.45% | |
What these numbers mean for VCSH
- Annual return
- VCSH returned 2.3% a year over the past 5 years with dividends reinvested, against 12.7% a year for the S&P 500. At that pace, $10,000 became about $11,200. Annual return is the steady yearly rate that would produce the same total result, so investments held over the same span compare fairly. Guide: What is performance and return? →
- Volatility
- VCSH's volatility over the past 5 years was 2.9%, 17% of the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VCSH's return lands within 2.9% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump. Guide: Understanding and measuring risk (volatility) →
- Sharpe ratio
- VCSH's Sharpe ratio over the past 5 years was 0.80, against 0.79 for the S&P 500, so VCSH earned more for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings. Guide: Balancing reward with risk (Sharpe ratio) →
- Worst decline
- VCSH's worst fall from a peak to a low over the past 10 years was 12.9%, against 33.7% for the S&P 500. Losses and gains are not symmetric: climbing back from a 12.9% fall takes a 14.8% gain. Guide: Market crash risk and tail risk →
- Correlation
- Over the past 5 years, VCSH's monthly returns had a correlation of 0.60 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against VCSH instead: the lower it is, the more that option would diversify a VCSH holding. Guide: Correlation and diversification →
Show all 31 stocks and funds worth at least $500 million that earned more than VCSH with less volatility
Out of 3,633 tested over 5 years. The strongest 14 are listed, best first, with funds that hold the same thing listed once.
| # | Investment | Found in | Annual return | Volatility | Sharpe | Worst decline | 10Y return | Corr. with VCSH | Expense |
|---|---|---|---|---|---|---|---|---|---|
| 1 | JAAAJanus Henderson AAA CLO ETF · CLO Bonds | Whole market | +5.1% | 1.7% | 2.98 | −2.6% | — | 0.33 | 0.20% |
| 2 | MINTPIMCO Enhanced Short Maturity Active Exchange-Traded Fund · Short-Term Bonds | Same or nearby category | +3.8% | 0.6% | 6.29 | −4.6% | +31.4% | 0.59 | 0.36% |
| 3 | TBUXT. Rowe Price Ultra Short-Term Bond ETF · Bonds | Whole market | +4.1% | 1.1% | 3.85 | −1.8% | — | 0.76 | 0.17% |
| 4 | RAVINorthern Trust Ultra-Short Fixed Income ETF · Bonds | Whole market | +3.8% | 1.4% | 2.61 | −3.7% | +30.8% | 0.65 | 0.26% |
| 5 | USTBVictoryShares Short-Term Bond ETF · Bonds | Whole market | +3.6% | 2.0% | 1.73 | −5.3% | — | 0.95 | 0.34% |
| 6 | VRIGInvesco Variable Rate Investment Grade ETF · Bonds | Whole market | +4.7% | 1.3% | 3.51 | −13.1% | +40.5% | 0.35 | 0.30% |
| 7 | FLRTPacer Aristotle Pacific Floating Rate High Income ETF · Financials | Whole market | +6.0% | 2.3% | 2.55 | −21.0% | +58.0% | 0.44 | 0.60% |
| 8 | FLOTiShares Floating Rate Bond ETF · Floating Rate Bonds | Whole market | +4.5% | 1.8% | 2.48 | −13.5% | +35.9% | 0.32 | 0.15% |
| 9 | FLRNState Street SPDR Bloomberg Investment Grade Floating Rate ETF · Bonds | Whole market | +4.5% | 1.7% | 2.58 | −14.7% | +35.9% | 0.37 | 0.15% |
| 10 | NEARiShares Short Duration Bond Active ETF · Short-Term Bonds | Same or nearby category | +3.9% | 1.4% | 2.71 | −9.6% | +31.8% | 0.75 | 0.25% |
| 11 | FLTRVanEck IG Floating Rate ETF · Multi-Asset | Whole market | +4.8% | 2.1% | 2.20 | −17.8% | +41.8% | 0.25 | 0.14% |
| 12 | VNLAJanus Henderson Short Duration Income ETF · Bonds | Whole market | +4.0% | 1.1% | 3.77 | −4.5% | — | 0.77 | 0.25% |
| 13 | FLUDFranklin Ultra Short Bond ETF · Bonds | Whole market | +3.9% | 1.4% | 2.74 | −1.7% | — | 0.59 | 0.15% |
| 14 | FLDRFidelity Low Duration Bond Factor ETF · Bonds | Whole market | +3.9% | 1.2% | 3.09 | −12.2% | — | 0.85 | 0.15% |
VCSH against its popular alternatives
The investments people most often weigh against VCSH, compared period by period and year by year.
How do VCSH's risk and return compare with its alternatives?
This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings. Investments toward the upper left earned more for a smoother ride, and those toward the lower right earned less for a rougher one. The dashed lines cross at VCSH, which divides the map into what did better or worse on each measure.
- Ten of the 20 popular alternatives earned less than VCSH over the past 5 years while swinging more, the weaker corner of the map.
- Four of the 20 popular alternatives, led by JPST, SPSB and VTIP, were both more rewarding and calmer than VCSH over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, VCSH returned 2.3% a year, less than the S&P 500's 12.7%, with lower volatility (2.9% against 17.1%).
Green points earned more than VCSH with less volatility; red points earned less with more. Hover over a point for its figures. Total returns with dividends reinvested, annualized.
All figures
| Investment | Annual return | Volatility |
|---|---|---|
| SPY S&P 500State Street SPDR S&P 500 ETF | +12.7% | 17.1% |
| IGBH iShares Interest Rate Hedged Long-Term Corporate Bond ETF | +5.4% | 6.0% |
| LQDH iShares Interest Rate Hedged Corporate Bond ETF | +5.3% | 4.4% |
| SHYG iShares 0-5 Year High Yield Corporate Bond ETF | +4.5% | 5.8% |
| JPST JPMorgan Ultra-Short Income ETF | +3.9% | 0.6% |
| SPSB State Street SPDR Portfolio Short Term Corporate Bond ETF | +2.8% | 2.0% |
| VTIP Vanguard Short-Term Inflation-Protected Securities ETF | +2.7% | 2.9% |
| SLQD iShares 0-5 Year Investment Grade Corporate Bond ETF | +2.5% | 2.5% |
| IGSB iShares 1-5 Year Investment Grade Corporate Bond ETF | +2.4% | 3.0% |
| VCSH This pageVanguard Short-Term Corporate Bond ETF | +2.3% | 2.9% |
| VGSH Vanguard Short-Term Treasury ETF | +1.9% | 2.0% |
| BSV Vanguard Short-Term Bond ETF | +1.7% | 2.8% |
| SPIB State Street SPDR Portfolio Intermediate Term Corporate Bond ETF | +1.6% | 4.5% |
| IGIB iShares 5-10 Year Investment Grade Corporate Bond ETF | +0.8% | 6.6% |
| VCIT Vanguard Intermediate-Term Corporate Bond ETF | +0.6% | 6.7% |
| IGEB iShares Investment Grade Systematic Bond ETF | +0.5% | 6.7% |
| CORP PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund | +0.3% | 6.9% |
| USIG iShares Broad USD Investment Grade Corporate Bond ETF | +0.1% | 6.8% |
| LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | −0.9% | 8.7% |
| IGLB iShares 10+ Year Investment Grade Corporate Bond ETF | −3.0% | 12.4% |
| VCLT Vanguard Long-Term Corporate Bond ETF | −3.2% | 12.8% |
| SPLB State Street SPDR Portfolio Long Term Corporate Bond ETF | −3.3% | 12.7% |
Has VCSH consistently beaten its popular alternatives?
This section compares VCSH with the investments people most often weigh against it, checking each one over eight periods from one month to ten years. Counting how often an alternative earned more than VCSH helps separate lasting outperformance from a single strong stretch.
- IGBH and LQDH outperformed VCSH in every long-term period and in all but one short-term period, the most consistent record in the group.
- Two of the 21 popular alternatives, IGBH and LQDH, outperformed VCSH in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- JPST, SPSB and SLQD earned more for the risk they took than VCSH (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.
A green cell means the alternative earned more than VCSH over that period. "Qualified" marks those that did so in at least 3 of 5 short-term periods and 2 of 3 long-term periods.
| Investment | Periods outperformed | Short term | Long term | Risk · 5 years | Fund | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1M | 3M | 6M | YTD | 1Y | 3Y | 5Y | 10Y | Volatilitylower is calmer | Sharpehigher is better | Worst declinepast 10 years | Expense | Assets | Overlapsame sectors | ||
| VCSH Vanguard Short-Term Corporate Bond ETF (this page) | — | −0.1% | −0.8% | −0.8% | −0.1% | +0.7% | +17.0% | +12.1% | +28.6% | 2.9% | 0.80 | −12.9% | 0.03% | $51B | — |
| IGBH QualifiediShares Interest Rate Hedged Long-Term Corporate Bond ETF | 4/5 short3/3 longAll-weather | −0.2% | +2.0% | +2.9% | +3.5% | +5.2% | +25.8% | +30.3% | +61.0% | 6.0% | 0.92 | −33.7% | 0.39% | $274M | — |
| LQDH QualifiediShares Interest Rate Hedged Corporate Bond ETF | 4/5 short3/3 longAll-weather | −0.2% | +1.3% | +2.4% | +3.4% | +4.9% | +23.9% | +29.5% | +55.5% | 4.4% | 1.21 | −24.6% | 0.44% | $600M | — |
| SHYG BondsiShares 0-5 Year High Yield Corporate Bond ETF | 2/5 short3/3 long | −1.3% | −1.1% | −0.5% | +0.8% | +2.1% | +25.7% | +24.5% | +56.4% | 5.8% | 0.79 | −19.3% | 0.30% | $7.6B | — |
| VTIP BondsVanguard Short-Term Inflation-Protected Securities ETF | 2/5 short2/3 long | +0.5% | −0.1% | −1.2% | +0.4% | +0.4% | +13.9% | +14.0% | +32.7% | 2.9% | 0.94 | −6.3% | 0.03% | $73B | — |
| SPSB BondsState Street SPDR Portfolio Short Term Corporate Bond ETF | 4/5 short1/3 long | +0.1% | 0.0% | +0.5% | +1.2% | +2.0% | +16.3% | +14.9% | +29.2% | 2.0% | 1.38 | −11.8% | 0.04% | $11B | — |
| JPST BondsJPMorgan Ultra-Short Income ETF | 4/5 short1/3 long | +0.3% | +0.7% | +1.6% | +2.5% | +3.4% | +15.5% | +20.8% | — | 0.6% | 6.34 | −3.3% | 0.18% | $43B | — |
| SLQD BondsiShares 0-5 Year Investment Grade Corporate Bond ETF | 3/5 short1/3 long | 0.0% | −0.6% | −0.3% | +0.5% | +1.3% | +16.4% | +13.3% | +28.6% | 2.5% | 1.02 | −12.7% | 0.06% | $2.4B | — |
| IGIB BondsiShares 5-10 Year Investment Grade Corporate Bond ETF | 0/5 short1/3 long | −1.0% | −2.8% | −3.7% | −2.8% | −2.7% | +21.9% | +3.9% | +28.8% | 6.6% | 0.15 | −20.6% | 0.04% | $19B | — |
| SPIB BondsState Street SPDR Portfolio Intermediate Term Corporate Bond ETF | 0/5 short1/3 long | −0.5% | −1.3% | −1.7% | −0.9% | −0.4% | +19.4% | +8.1% | +28.4% | 4.5% | 0.37 | −14.9% | 0.04% | $11B | — |
| VCIT BondsVanguard Intermediate-Term Corporate Bond ETF | 0/5 short1/3 long | −1.0% | −2.7% | −3.6% | −2.8% | −2.6% | +21.5% | +3.2% | +26.4% | 6.7% | 0.13 | −20.6% | 0.03% | $69B | — |
| CORP BondsPIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund | 0/5 short1/3 long | −1.0% | −2.0% | −2.9% | −1.9% | −2.2% | +20.0% | +1.4% | +25.9% | 6.9% | 0.07 | −21.2% | 0.41% | $1.3B | — |
| USIG BondsiShares Broad USD Investment Grade Corporate Bond ETF | 0/5 short1/3 long | −0.9% | −2.2% | −3.0% | −2.1% | −2.5% | +19.7% | +0.3% | +23.5% | 6.8% | 0.04 | −21.4% | 0.04% | $18B | — |
| LQD BondsiShares iBoxx $ Investment Grade Corporate Bond ETF | 0/5 short1/3 long | −1.4% | −2.4% | −3.9% | −2.9% | −3.9% | +19.7% | −4.3% | +20.5% | 8.7% | -0.06 | −25.0% | 0.14% | $29B | — |
| IGLB BondsiShares 10+ Year Investment Grade Corporate Bond ETF | 0/5 short1/3 long | −2.1% | −3.1% | −5.1% | −4.0% | −6.3% | +21.1% | −14.4% | +14.1% | 12.4% | -0.19 | −34.1% | 0.04% | $2.7B | — |
| VCLT BondsVanguard Long-Term Corporate Bond ETF | 0/5 short1/3 long | −2.1% | −3.6% | −5.7% | −4.4% | −6.9% | +20.0% | −15.2% | +13.7% | 12.8% | -0.20 | −34.1% | 0.03% | $8.3B | — |
| SPLB BondsState Street SPDR Portfolio Long Term Corporate Bond ETF | 0/5 short1/3 long | −2.1% | −3.2% | −5.2% | −4.1% | −6.6% | +20.4% | −15.3% | +12.9% | 12.7% | -0.20 | −34.5% | 0.04% | $1.2B | — |
| IGEB BondsiShares Investment Grade Systematic Bond ETF | 0/5 short1/3 long | −0.9% | −1.9% | −2.7% | −1.8% | −2.1% | +21.3% | +2.6% | — | 6.7% | 0.11 | −21.1% | 0.18% | $1.4B | — |
| VGSH BondsVanguard Short-Term Treasury ETF | 4/5 short0/3 long | +0.3% | −0.1% | 0.0% | +0.6% | +1.2% | +12.5% | +9.9% | +18.8% | 2.0% | 0.95 | −5.6% | 0.03% | $40B | — |
| IGSB BondsiShares 1-5 Year Investment Grade Corporate Bond ETF | 0/5 short0/3 long | −0.1% | −0.9% | −0.8% | 0.0% | +0.7% | +17.3% | +12.4% | +29.4% | 3.0% | 0.80 | −13.4% | 0.04% | $23B | — |
| BSV BondsVanguard Short-Term Bond ETF | 0/5 short0/3 long | +0.1% | −0.4% | −0.5% | +0.1% | +0.7% | +14.1% | +8.8% | +20.5% | 2.8% | 0.63 | −8.5% | 0.03% | $70B | — |
| SCHJ BondsSchwab 1-5 Year Corporate Bond ETF | 0/5 short0/3 long | −0.1% | −0.5% | −0.5% | +0.4% | +1.0% | +17.4% | +12.3% | — | 3.0% | 0.79 | −13.6% | 0.03% | $900M | — |
How did VCSH do year by year?
This table shows each investment's total return in every full calendar year since 2010, along with where VCSH ranked among its popular alternatives each year. Annual results reveal how consistently each one kept pace with VCSH and how far its good and bad years diverged, detail that multiyear averages tend to smooth over.
Note: VCSH began trading on November 23, 2009, so the table starts with 2010, its first full calendar year, and cannot show how it fared during the dot-com bust or the 2008 financial crisis.
- VCSH finished ahead of the S&P 500 in three of its 16 full calendar years, and behind it in each of the last three.
- Among its popular alternatives, IGBH came out ahead of VCSH most often, in eight of the ten years both traded.
- Ranked against its popular alternatives each year, VCSH finished in the top quarter in two of 16 years and in the bottom quarter in no. In 2025, it ranked 15 of 21.
Newest year first. Green marks a year in which the fund came out ahead of VCSH; gray means the two finished within a fraction of a point. The rank row places VCSH among the alternatives that traded the full year; dark green is the top quarter and red the bottom quarter.
| Investment | Years ahead of VCSH | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| VCSH This pageVanguard Short-Term Corporate Bond ETF | — | +6.8% | +4.9% | +6.2% | −5.5% | −0.6% | +5.1% | +7.0% | +0.9% | +2.2% | +2.6% | +1.3% | +1.8% | +1.4% | +5.6% | +3.1% | +5.3% |
| Rank among alternatives | Top quarter in 2 of 16 | 15 of 21 | 8 of 21 | 15 of 21 | 9 of 21 | 9 of 21 | 12 of 21 | 15 of 21 | 7 of 21 | 13 of 19 | 13 of 19 | 2 of 18 | 10 of 17 | 1 of 15 | 10 of 14 | 10 of 14 | 9 of 13 |
| SPY S&P 500State Street SPDR S&P 500 ETF | 12 of 16 | +17.7% | +24.9% | +26.2% | −18.2% | +28.7% | +18.3% | +31.2% | −4.6% | +21.7% | +12.0% | +1.2% | +13.5% | +32.3% | +16.0% | +1.9% | +15.1% |
| IGBH iShares Interest Rate Hedged Long-Term Corporate Bond ETF | 8 of 10 | +7.9% | +7.8% | +12.1% | −2.8% | +2.2% | +1.1% | +9.6% | −4.0% | +9.3% | +7.6% | — | — | — | — | — | — |
| LQDH iShares Interest Rate Hedged Corporate Bond ETF | 7 of 11 | +7.0% | +7.4% | +11.1% | −1.9% | +1.8% | +1.7% | +9.5% | −2.2% | +6.0% | +5.1% | −2.2% | — | — | — | — | — |
| SHYG iShares 0-5 Year High Yield Corporate Bond ETF | 8 of 12 | +8.0% | +8.2% | +10.4% | −4.7% | +4.6% | +3.2% | +9.9% | 0.0% | +5.1% | +12.5% | −3.8% | +0.3% | — | — | — | — |
| VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 2 of 13 | +6.0% | +4.7% | +4.6% | −2.9% | +5.3% | +5.0% | +4.9% | +0.6% | +0.8% | +2.4% | +0.2% | −1.4% | −1.5% | — | — | — |
| SPSB State Street SPDR Portfolio Short Term Corporate Bond ETF | 2 of 16 | +5.9% | +5.3% | +5.6% | −3.3% | −0.2% | +3.8% | +5.2% | +1.5% | +1.6% | +2.1% | +0.9% | +0.9% | +1.3% | +3.6% | +1.5% | +2.8% |
| JPST JPMorgan Ultra-Short Income ETF | 4 of 8 | +5.0% | +5.6% | +5.1% | +1.1% | +0.1% | +2.2% | +3.3% | +2.2% | — | — | — | — | — | — | — | — |
| SLQD iShares 0-5 Year Investment Grade Corporate Bond ETF | 1 of 12 | +6.3% | +4.9% | +6.0% | −4.4% | −0.6% | +4.8% | +6.1% | +1.1% | +2.1% | +1.7% | +1.3% | +1.7% | — | — | — | — |
| IGIB iShares 5-10 Year Investment Grade Corporate Bond ETF | 10 of 16 | +9.6% | +3.5% | +9.2% | −14.0% | −1.7% | +9.7% | +14.6% | −0.7% | +3.5% | +3.3% | +0.6% | +3.9% | −0.4% | +7.2% | +5.8% | +6.8% |
| SPIB State Street SPDR Portfolio Intermediate Term Corporate Bond ETF | 10 of 16 | +7.9% | +4.3% | +7.3% | −9.6% | −1.3% | +7.7% | +10.3% | −0.5% | +3.8% | +4.2% | +0.4% | +4.5% | −0.6% | +8.4% | +5.8% | +7.2% |
| VCIT Vanguard Intermediate-Term Corporate Bond ETF | 10 of 16 | +9.3% | +3.2% | +9.0% | −14.0% | −1.8% | +9.4% | +14.1% | −1.8% | +5.3% | +5.3% | +0.9% | +7.7% | −1.9% | +10.5% | +9.0% | +10.0% |
| CORP PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund | 9 of 15 | +8.0% | +2.5% | +9.1% | −15.0% | −1.2% | +9.7% | +14.8% | −3.0% | +6.6% | +6.4% | −0.9% | +7.8% | −1.6% | +11.3% | +5.5% | — |
| USIG iShares Broad USD Investment Grade Corporate Bond ETF | 10 of 16 | +7.9% | +2.6% | +8.7% | −15.3% | −1.3% | +9.4% | +14.0% | −2.2% | +5.7% | +5.6% | −1.5% | +8.2% | −2.2% | +7.6% | +9.2% | +8.4% |
| LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 10 of 16 | +7.9% | +0.9% | +9.4% | −17.9% | −1.8% | +11.0% | +17.4% | −3.8% | +7.0% | +6.2% | −1.3% | +8.2% | −2.0% | +10.6% | +9.8% | +9.3% |
| IGLB iShares 10+ Year Investment Grade Corporate Bond ETF | 10 of 16 | +7.5% | −1.5% | +11.1% | −25.4% | −1.7% | +13.3% | +23.2% | −6.9% | +12.2% | +9.9% | −5.5% | +16.7% | −7.8% | +11.1% | +16.9% | +10.7% |
| VCLT Vanguard Long-Term Corporate Bond ETF | 9 of 16 | +7.2% | −1.9% | +11.2% | −25.3% | −1.7% | +13.3% | +23.9% | −7.0% | +11.7% | +10.8% | −4.8% | +16.4% | −5.2% | +10.8% | +17.5% | +10.7% |
| SPLB State Street SPDR Portfolio Long Term Corporate Bond ETF | 9 of 16 | +7.1% | −1.8% | +11.2% | −25.7% | −2.0% | +13.4% | +23.5% | −7.3% | +12.2% | +10.8% | −5.1% | +16.4% | −5.4% | +9.4% | +16.8% | +9.3% |
| IGEB iShares Investment Grade Systematic Bond ETF | 4 of 8 | +8.2% | +3.1% | +9.6% | −14.8% | −1.1% | +11.3% | +15.4% | −2.1% | — | — | — | — | — | — | — | — |
| VGSH Vanguard Short-Term Treasury ETF | 2 of 16 | +5.1% | +4.0% | +4.3% | −3.8% | −0.6% | +3.1% | +3.5% | +1.6% | 0.0% | +1.1% | +0.5% | +0.5% | +0.3% | +0.4% | +1.5% | +2.3% |
| IGSB iShares 1-5 Year Investment Grade Corporate Bond ETF | 0 of 16 | +7.0% | +5.0% | +6.4% | −5.7% | −0.6% | +5.4% | +7.1% | +1.3% | +1.3% | +1.8% | +0.6% | +0.7% | +1.1% | +2.9% | +1.8% | +2.9% |
| BSV Vanguard Short-Term Bond ETF | 0 of 16 | +6.0% | +3.8% | +4.9% | −5.5% | −1.1% | +4.7% | +5.0% | +1.3% | +1.2% | +1.3% | +0.9% | +1.3% | +0.1% | +2.0% | +2.9% | +3.9% |
Risk and diversification
How VCSH has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.
What were VCSH's worst declines?
A drawdown is the decline from a peak to the lowest point before a new high. This section presents VCSH's two deepest drawdowns since it began trading in 2009, alongside the S&P 500's return over the same dates, and how long each took to recover. Together, these figures show how much an investor could have lost and how long it took to get back to even.
Note: VCSH began trading on November 23, 2009, so this list cannot include the dot-com bust or the 2008 financial crisis. The crash tests on this page show how older funds and the S&P 500 fared through those years.
- The longest climb back to a previous high took 19 months, after VCSH fell 9.3% from August 2021 to October 2022.
Green means VCSH fell less than the S&P 500 over the same dates. Based on daily closing prices with dividends reinvested.
| During | VCSH fell | S&P 500, same dates | Peak | Low | Time to the low | Back at the peak | Time to recover |
|---|---|---|---|---|---|---|---|
| Covid crash | −12.9% | −20.5% | Mar 2020 | Mar 2020 | Under a month | May 2020 | 2 months |
| 2022 bear market | −9.3% | −15.7% | Aug 2021 | Oct 2022 | 14 months | May 2024 | 19 months |
How did VCSH do in stock market crashes?
This section measures how far VCSH, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000. A smaller decline means an investment held up better, and comparing results across crashes shows whether that resilience was consistent or a one-off.
Note: VCSH began trading on November 23, 2009, so its row reads "Not yet trading" for the dot-com bust or the 2008 financial crisis. The older alternatives and the S&P 500 show how those crashes played out.
- VCSH fell less than the S&P 500 in all eight crashes it has traded through. The clearest case was the Covid crash, when VCSH fell 12.9% and the S&P 500 fell 33.7%.
- None of its popular alternatives fell less than VCSH in most of the crashes they both traded through.
- VCSH began trading after the 2008 financial crisis, but five of its popular alternatives lived through it. The mildest fall among them was BSV's 7.0%, against 55.2% for the S&P 500.
Newest crash first. Each figure is the fund's deepest fall within the crash window; green means a smaller fall than VCSH.
| Investment | Held up better | 2023 regional bank crisisMar 2023 | 2022 bear marketJan 2022 | Covid crashFeb 2020 | Late-2018 sell-offSep 2018 | February 2018 volatility shockFeb 2018 | 2015 China and oil sell-offAug 2015 | 2011 euro debt crisisJul 2011 | 2010 flash crashMay 2010 | 2008 financial crisisOct 2007 | Dot-com bustMar 2000 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| VCSH This pageVanguard Short-Term Corporate Bond ETF | — | 0.0% | −7.6% | −12.9% | −0.3% | −0.2% | −1.0% | −1.6% | −0.3% | Not yet trading | Not yet trading |
| SPY S&P 500State Street SPDR S&P 500 ETF | 0 of 8 | −3.4% | −24.5% | −33.7% | −19.3% | −6.5% | −12.8% | −17.9% | −1.5% | −55.2% | −47.5% |
| IGBH iShares Interest Rate Hedged Long-Term Corporate Bond ETF | 0 of 5 | −1.9% | −9.3% | −32.7% | −6.0% | −1.6% | — | — | — | — | — |
| LQDH iShares Interest Rate Hedged Corporate Bond ETF | 1 of 6 | −2.0% | −6.5% | −24.0% | −4.1% | −0.9% | −6.6% | — | — | — | — |
| SHYG iShares 0-5 Year High Yield Corporate Bond ETF | 0 of 6 | −1.0% | −9.2% | −19.2% | −5.0% | −1.0% | −7.9% | — | — | — | — |
| VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 2 of 6 | 0.0% | −5.5% | −6.3% | −0.7% | −0.3% | −1.1% | — | — | — | — |
| SPSB State Street SPDR Portfolio Short Term Corporate Bond ETF | 3 of 8 | 0.0% | −4.8% | −11.8% | −0.2% | −0.2% | −0.8% | −0.9% | −0.2% | — | — |
| JPST JPMorgan Ultra-Short Income ETF | 2 of 5 | 0.0% | −0.6% | −3.2% | −0.1% | −0.1% | — | — | — | — | — |
| SLQD iShares 0-5 Year Investment Grade Corporate Bond ETF | 1 of 6 | 0.0% | −6.3% | −12.7% | −0.3% | −0.3% | −0.9% | — | — | — | — |
| IGIB iShares 5-10 Year Investment Grade Corporate Bond ETF | 0 of 8 | 0.0% | −17.3% | −16.2% | −1.4% | −0.5% | −1.4% | −1.8% | −0.7% | −14.5% | — |
| SPIB State Street SPDR Portfolio Intermediate Term Corporate Bond ETF | 0 of 8 | 0.0% | −12.4% | −14.9% | −0.8% | −0.6% | −1.6% | −1.9% | −1.8% | — | — |
| VCIT Vanguard Intermediate-Term Corporate Bond ETF | 0 of 8 | 0.0% | −17.4% | −16.9% | −1.2% | −1.0% | −2.0% | −3.0% | 0.0% | — | — |
| CORP PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund | 0 of 7 | 0.0% | −18.0% | −19.1% | −2.2% | −1.0% | −2.3% | −2.4% | — | — | — |
| USIG iShares Broad USD Investment Grade Corporate Bond ETF | 0 of 8 | −0.1% | −18.1% | −18.9% | −1.9% | −1.0% | −2.1% | −2.4% | −0.7% | −22.2% | — |
| LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 0 of 8 | −0.1% | −21.3% | −21.8% | −2.6% | −1.2% | −2.7% | −3.2% | 0.0% | −21.5% | — |
| IGLB iShares 10+ Year Investment Grade Corporate Bond ETF | 0 of 8 | −0.4% | −29.0% | −27.7% | −4.6% | −2.5% | −3.6% | −4.2% | −0.9% | — | — |
| VCLT Vanguard Long-Term Corporate Bond ETF | 0 of 8 | −0.4% | −28.9% | −28.2% | −4.5% | −2.4% | −3.9% | −4.9% | −1.4% | — | — |
| SPLB State Street SPDR Portfolio Long Term Corporate Bond ETF | 0 of 8 | −0.4% | −29.2% | −27.9% | −4.3% | −2.3% | −4.0% | −5.0% | −4.5% | — | — |
| IGEB iShares Investment Grade Systematic Bond ETF | 0 of 5 | 0.0% | −17.9% | −16.5% | −1.7% | −1.6% | — | — | — | — | — |
| VGSH Vanguard Short-Term Treasury ETF | 3 of 8 | 0.0% | −4.6% | −0.5% | −0.2% | −0.1% | −0.7% | −0.3% | 0.0% | — | — |
| IGSB iShares 1-5 Year Investment Grade Corporate Bond ETF | 0 of 8 | 0.0% | −7.8% | −13.4% | −0.3% | −0.1% | −0.6% | −1.3% | −0.7% | −11.5% | — |
| BSV Vanguard Short-Term Bond ETF | 3 of 8 | 0.0% | −6.9% | −4.7% | −0.3% | −0.2% | −1.0% | −0.5% | −0.1% | −7.0% | — |
How closely does VCSH move with the S&P 500?
Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell. An investment that captures more of the gains than the losses has compounded ahead of the market over time. This section compares VCSH with its popular alternatives on both measures, and on beta (how strongly each has moved with the market), over the past 10 years.
- Over the past 10 years, VCSH captured 13% of the S&P 500's gains in rising months and 9% of its losses in falling months, with a beta of 0.11. That is a defensive profile: it gave up some of the market's upside in exchange for smaller losses.
- VTIP took just 3% of the S&P 500's losses, against 9% for VCSH, while still keeping 11% of its gains.
- Five of the 17 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than VCSH's 1.47, led by VTIP, SPSB and BSV.
Monthly total returns over the past 10 years, measured against SPY. 100% capture or a beta of 1.00 means moving in line with the S&P 500. Green marks a better figure than VCSH's: more upside, less downside or a higher capture ratio. Sorted by capture ratio.
| Investment | Upside capture | Downside capture | Capture ratio | Beta |
|---|---|---|---|---|
| VCSH This pageVanguard Short-Term Corporate Bond ETF | 13% | 9% | 1.47 | 0.11 |
| VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 11% | 3% | 3.49 | 0.08 |
| SPSB State Street SPDR Portfolio Short Term Corporate Bond ETF | 10% | 4% | 2.93 | 0.07 |
| BSV Vanguard Short-Term Bond ETF | 7% | 3% | 2.75 | 0.04 |
| SLQD iShares 0-5 Year Investment Grade Corporate Bond ETF | 11% | 6% | 1.88 | 0.09 |
| IGSB iShares 1-5 Year Investment Grade Corporate Bond ETF | 13% | 8% | 1.55 | 0.11 |
| LQDH iShares Interest Rate Hedged Corporate Bond ETF | 26% | 22% | 1.19 | 0.26 |
| SHYG iShares 0-5 Year High Yield Corporate Bond ETF | 29% | 28% | 1.06 | 0.31 |
| IGBH iShares Interest Rate Hedged Long-Term Corporate Bond ETF | 33% | 32% | 1.03 | 0.33 |
| SPIB State Street SPDR Portfolio Intermediate Term Corporate Bond ETF | 17% | 18% | 0.96 | 0.18 |
| IGIB iShares 5-10 Year Investment Grade Corporate Bond ETF | 22% | 29% | 0.78 | 0.27 |
| VCIT Vanguard Intermediate-Term Corporate Bond ETF | 22% | 29% | 0.76 | 0.26 |
| CORP PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund | 22% | 30% | 0.74 | 0.26 |
| USIG iShares Broad USD Investment Grade Corporate Bond ETF | 22% | 31% | 0.71 | 0.27 |
| LQD iShares iBoxx $ Investment Grade Corporate Bond ETF | 25% | 39% | 0.64 | 0.33 |
| IGLB iShares 10+ Year Investment Grade Corporate Bond ETF | 33% | 58% | 0.56 | 0.46 |
| VCLT Vanguard Long-Term Corporate Bond ETF | 33% | 59% | 0.56 | 0.46 |
| SPLB State Street SPDR Portfolio Long Term Corporate Bond ETF | 33% | 60% | 0.55 | 0.47 |
| VGSH Vanguard Short-Term Treasury ETF | 5% | -1% | — | 0.01 |
What diversifies VCSH?
Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions). This section lists large ETFs and stocks whose returns have had a low correlation with VCSH's. Because such investments tend not to fall at the same time, pairing VCSH with them can reduce a portfolio's overall swings.
- MCK made money in two of the two calendar years in which VCSH lost money.
- Among large ETFs, DXJ, EMLP and HDV have moved largely independently of VCSH over the past 5 years, with correlations of 0.49 or lower, and each still earned a positive 5-year return.
- Among large stocks, CAH, CLS and FIX have moved largely independently of VCSH over the past 5 years, with correlations of 0.21 or lower, and each still earned a positive 5-year return.
Only ETFs with at least $1.0B in assets and stocks worth at least $10B, with a correlation below 0.5 over the past 5 years and a positive return, are included, ranked by Sharpe ratio; funds that hold the same thing are shown once. The year columns are the years in which VCSH lost money. The last two columns show a portfolio that is 80% VCSH and 20% the other investment, rebalanced monthly.
ETFs
| Investment | Correlation | 5Y return | Sharpe | 2022 | 2021 | 80/20 mix volatility | 80/20 mix annual return |
|---|---|---|---|---|---|---|---|
| VCSH Vanguard Short-Term Corporate Bond ETF (this page) | 1.00 | +12.1% | 0.80 | −5.5% | −0.6% | 3.4% | +2.1% |
| DXJ InternationalWisdomTree Japan Hedged Equity Fund | 0.25 | +225% | 1.34 | +6.0% | +18.0% | 4.2% | +6.8% |
| EMLP Broad MarketFirst Trust North American Energy Infrastructure Fund | 0.45 | +101% | 1.04 | +10.4% | +23.1% | 4.8% | +4.8% |
| HDV Dividend & IncomeiShares Core High Dividend ETF | 0.49 | +83.3% | 1.00 | +7.1% | +19.6% | 4.8% | +4.2% |
| SMH TechnologyVanEck Semiconductor ETF | 0.48 | +323% | 0.97 | −33.5% | +42.1% | 8.6% | +9.3% |
| GLD CommoditiesSPDR Gold Shares | 0.42 | +126% | 0.96 | −0.8% | −4.2% | 5.2% | +5.4% |
| SPMO Broad MarketInvesco S&P 500 Momentum ETF | 0.40 | +136% | 0.93 | −10.4% | +22.7% | 5.8% | +6.1% |
| XLE EnergyState Street Energy Select Sector SPDR ETF | 0.09 | +177% | 0.93 | +64.4% | +53.3% | 6.1% | +6.6% |
| AMLP EnergyAlerian MLP ETF | 0.23 | +111% | 0.89 | +25.5% | +39.1% | 5.1% | +5.5% |
Stocks
| Investment | Correlation | 5Y return | Sharpe | 2022 | 2021 | 80/20 mix volatility | 80/20 mix annual return |
|---|---|---|---|---|---|---|---|
| VCSH Vanguard Short-Term Corporate Bond ETF (this page) | 1.00 | +12.1% | 0.80 | −5.5% | −0.6% | 3.4% | +2.1% |
| CAH Medical - DistributionCardinal Health, Inc. | 0.21 | +479% | 1.55 | +54.1% | −0.4% | 6.4% | +9.0% |
| CLS Hardware, Equipment & PartsCelestica Inc. | 0.12 | +3,143% | 1.47 | +1.3% | +37.9% | 12.3% | +21.1% |
| FIX Engineering & ConstructionComfort Systems USA, Inc. | 0.16 | +1,636% | 1.46 | +17.0% | +89.0% | 9.8% | +17.3% |
| MCK Medical - DistributionMcKesson Corporation | 0.04 | +413% | 1.44 | +51.8% | +44.2% | 5.9% | +8.5% |
| MPC Oil & Gas Refining & MarketingMarathon Petroleum Corporation | 0.08 | +690% | 1.41 | +86.6% | +61.0% | 7.2% | +11.0% |
Common questions
What was VCSH's worst drawdown?
VCSH's deepest decline since it began trading in 2009 was 12.9%, in March 2020. It took two months from the low to climb back to its old high. Because VCSH launched in November 2009, that record does not include the dot-com bust or the 2008 financial crisis.
What were VCSH's best and worst years?
Over 16 full calendar years, VCSH's best year was 2019, when it returned 7.0%. Its worst was 2022, with a return of -5.5%.
Is there a better investment than VCSH?
Among VCSH's popular alternatives, JPST earned more than VCSH with less volatility over the past 5 years: 3.9% a year at 0.6% volatility, against 2.3% a year at 2.9%. Looking beyond its popular alternatives, NEAR (short-term bonds) earned more than VCSH with less volatility over the past 5 years: 3.9% a year at 1.4% volatility, against 2.3% a year at 2.9%.
Is VCSH more volatile than the S&P 500?
No. VCSH's volatility over the past 5 years was 2.9%, 17% of the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VCSH's return lands within 2.9% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.
What is VCSH's Sharpe ratio?
VCSH's Sharpe ratio over the past 5 years was 0.80, against 0.79 for the S&P 500, so VCSH earned more for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.
How correlated is VCSH with the S&P 500?
Over the past 5 years, VCSH's monthly returns had a correlation of 0.60 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against VCSH instead: the lower it is, the more that option would diversify a VCSH holding.
What are the best alternatives to VCSH?
Of the 21 popular alternatives we compared, two outperformed VCSH in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: IGBH and LQDH.
Did VCSH outperform the S&P 500?
VCSH finished ahead of the S&P 500 (SPY) in three of 16 full calendar years. In 2025, it returned +6.8%, against +17.7% for the index.
How did VCSH do in stock market crashes?
VCSH fell less than the S&P 500 (SPY) in eight of the eight major crashes it has traded through, and further in no. The clearest case was the Covid crash, when VCSH fell 12.9% and the S&P 500 fell 33.7%.
What diversifies VCSH?
These had a low correlation with VCSH over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.25), EMLP (correlation 0.45) and HDV (correlation 0.49); among large stocks, CAH (correlation 0.21), CLS (correlation 0.12) and FIX (correlation 0.16). A correlation near zero means the two have moved largely independently.
How we measure
- Short-term periods are 1M, 3M, 6M, YTD, 1Y; long-term periods are 3Y, 5Y, 10Y. An investment outperformed in a period when its total return, with dividends reinvested, was higher than VCSH's. Returns within 0.5 points or 3% of VCSH's, whichever is larger, count as a tie.
- "Qualified" means outperforming in at least 3 of 5 short-term periods and 2 of 3 long-term periods. "All-weather" means outperforming in every long-term period and all but one short-term period.
- Popular alternatives are the funds and stocks most often compared with this one. We include only those that trade today, are not leveraged or inverse, and hold at least $200 million.
- Volatility is the annualized standard deviation of daily returns over 5 years, a measure of how much the price typically swings in a year. The Sharpe ratio is the return above cash for each unit of that volatility.
- A decline, or drawdown, runs from a peak to the lowest close before the next high. The worst decline ever uses all the price history we have; comparisons between funds use the past 10 years so that younger funds are judged on the same stretch.
- Sector overlap is the share of assets two funds hold in the same sectors. Correlation and the mixed-portfolio figures use monthly returns.
- Upside and downside capture follow Morningstar's definition: the compound monthly return in the months the S&P 500 rose (or fell), divided by the S&P 500's compound return in those months. Beta measures how strongly monthly returns have moved with the S&P 500. All three use the same window for every investment.
- Figures are computed from daily adjusted prices and update after each trading day. Past performance does not predict future results.
More research
Popular alternatives to VCSH
VTIPVanguard Short-Term Inflation-Protected Securities ETF- JPSTJPMorgan Ultra-Short Income ETF
VCITVanguard Intermediate-Term Corporate Bond ETF
BSVVanguard Short-Term Bond ETF
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