BSV vs. VCSH

Last updated Jun 3, 2026

BSV (Vanguard Short-Term Bond Index Fund ETF Shares) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both exchange-traded funds - BSV is a Short-Term Bond fund tracking the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index, while VCSH is a Corporate Bonds fund tracking the Barclays Capital U.S. 1-5 Year Corporate Index. Both are passively managed. Over the past 10 years, BSV returned 1.96%/yr vs 2.70%/yr for VCSH. A 0.78 correlation means they provide meaningful diversification when combined. BSV charges 0.03%/yr vs 0.04%/yr for VCSH.

Performance

BSV vs. VCSH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Bond Index Fund ETF Shares (BSV) and Vanguard Short-Term Corporate Bond ETF (VCSH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BSV achieves a 0.37% return, which is significantly lower than VCSH's 0.72% return. Over the past 10 years, BSV has underperformed VCSH with an annualized return of 1.96%, while VCSH has yielded a comparatively higher 2.70% annualized return.

BSV

• 1D: -0.01%
• 1M: -0.02%
• YTD: 0.37%
• 6M: 0.67%
• 1Y: 3.70%
• 3Y*: 4.44%
• 5Y*: 1.66%
• 10Y*: 1.96%

VCSH

• 1D: -0.01%
• 1M: 0.21%
• YTD: 0.72%
• 6M: 1.11%
• 1Y: 4.64%
• 3Y*: 5.54%
• 5Y*: 2.36%
• 10Y*: 2.70%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BSV vs. VCSH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BSV Vanguard Short-Term Bond Index Fund ETF Shares	0.37%	6.00%	3.78%	4.90%	-5.49%	-1.09%	4.70%	4.98%	1.34%	1.20%
VCSH Vanguard Short-Term Corporate Bond ETF	0.72%	6.77%	4.91%	6.20%	-5.62%	-0.63%	5.13%	7.02%	0.92%	2.17%

Correlation

The correlation between BSV and VCSH is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009	0.78

The correlation between BSV and VCSH shifts across timeframes, from 0.78 (all time) to 0.95 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

BSV vs. VCSH — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BSV

BSV Risk / Return Rank: 62
BSV Sharpe Ratio Rank: 60
BSV Sortino Ratio Rank: 72
BSV Omega Ratio Rank: 64
BSV Calmar Ratio Rank: 56
BSV Martin Ratio Rank: 56

VCSH

VCSH Risk / Return Rank: 76
VCSH Sharpe Ratio Rank: 75
VCSH Sortino Ratio Rank: 86
VCSH Omega Ratio Rank: 80
VCSH Calmar Ratio Rank: 65
VCSH Martin Ratio Rank: 71

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BSV vs. VCSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Bond Index Fund ETF Shares (BSV) and Vanguard Short-Term Corporate Bond ETF (VCSH). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	BSV	VCSH	Difference
Sharpe ratio Return per unit of total volatility	2.05	2.48	-0.43
Sortino ratio Return per unit of downside risk	3.30	3.90	-0.60
Omega ratio Gain probability vs. loss probability	1.39	1.49	-0.09
Calmar ratio Return relative to maximum drawdown	2.82	3.27	-0.46
Martin ratio Return relative to average drawdown	9.96	13.54	-3.58
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BSV vs. VCSH - Sharpe Ratio Comparison

The current BSV Sharpe Ratio is 2.05, which is comparable to the VCSH Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of BSV and VCSH, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BSV	VCSH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.05	2.48	-0.43
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.61	0.82	-0.21
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.83	0.81	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.86	1.02	-0.16

Drawdowns

BSV vs. VCSH - Drawdown Comparison

The maximum BSV drawdown since its inception was -8.54%, smaller than the maximum VCSH drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for BSV and VCSH.

Drawdown Indicators

	BSV	VCSH	Difference
Max Drawdown Largest peak-to-trough decline	-8.54%	-12.86%	+4.32%
Max Drawdown (1Y) Largest decline over 1 year	-1.29%	-1.40%	+0.11%
Max Drawdown (3Y) Largest decline over 3 years	-1.53%	-1.40%	-0.13%
Max Drawdown (5Y) Largest decline over 5 years	-8.54%	-9.48%	+0.94%
Max Drawdown (10Y) Largest decline over 10 years	-8.54%	-12.86%	+4.32%
Current Drawdown Current decline from peak	-0.55%	-0.24%	-0.31%
Average Drawdown Average peak-to-trough decline	-0.97%	-0.97%	0.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.36%	0.34%	+0.02%

Volatility

BSV vs. VCSH - Volatility Comparison

The current volatility for Vanguard Short-Term Bond Index Fund ETF Shares (BSV) is 0.54%, while Vanguard Short-Term Corporate Bond ETF (VCSH) has a volatility of 0.57%. This indicates that BSV experiences smaller price fluctuations and is considered to be less risky than VCSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BSV	VCSH	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.54%	0.57%	-0.03%
Volatility (6M) Calculated over the trailing 6-month period	1.26%	1.38%	-0.12%
Volatility (1Y) Calculated over the trailing 1-year period	1.81%	1.88%	-0.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.72%	2.88%	-0.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.37%	3.35%	-0.98%

BSV vs. VCSH - Expense Ratio Comparison

BSV has a 0.03% expense ratio, which is lower than VCSH's 0.04% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

BSV vs. VCSH - Dividend Comparison

BSV's dividend yield for the trailing twelve months is around 3.99%, less than VCSH's 4.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BSV Vanguard Short-Term Bond Index Fund ETF Shares	3.99%	3.83%	3.38%	2.46%	1.50%	1.45%	1.79%	2.29%	1.99%	1.65%	1.48%	1.40%
VCSH Vanguard Short-Term Corporate Bond ETF	4.45%	4.35%	3.96%	3.09%	2.01%	1.81%	2.27%	2.87%	2.65%	2.26%	2.10%	2.08%

Frequently Asked Questions

Can I hold both BSV and VCSH in my portfolio?

With a correlation of 0.94, BSV and VCSH move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, BSV or VCSH?

VCSH has higher volatility (0.57%) compared to BSV (0.54%). In terms of maximum drawdown, BSV dropped -8.54% vs VCSH's -12.86%.

Which ETF is better, BSV or VCSH?

On 10-year performance, VCSH leads with 2.70% vs 1.96% for BSV. On fees, BSV is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BSV or VCSH?

Over the 10-year period, VCSH has performed better with a 2.70% return vs 1.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BSV or VCSH?

BSV is cheaper with a 0.03% expense ratio, compared with 0.04% for VCSH.

Which ETF pays a higher dividend yield, BSV or VCSH?

VCSH has the higher dividend yield at 4.45%, compared with 3.99% for BSV.

What is the main difference between BSV and VCSH?

BSV is categorized as Short-Term Bond, while VCSH is Corporate Bonds. BSV tracks Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index, while VCSH tracks Barclays Capital U.S. 1-5 Year Corporate Index. Their fees differ too: 0.03% for BSV and 0.04% for VCSH.

Which has better risk-adjusted returns?

VCSH currently has the higher Sharpe Ratio (2.48 vs 2.05), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.