FCSH vs. VCSH

Last updated Jun 23, 2026

FCSH (Federated Hermes Short Duration Corporate ETF) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both exchange-traded funds - FCSH is a Short-Term Bond fund actively managed by Federated, while VCSH is a Corporate Bonds fund tracking the Bloomberg U.S. 1-5 Year Corporate Bond Index. FCSH is actively managed, while VCSH is passively managed. Over the past 3 years, FCSH returned 5.10%/yr vs 5.56%/yr for VCSH. Their correlation of 0.93 suggests significant overlap in exposure. FCSH charges 0.30%/yr vs 0.04%/yr for VCSH.

Performance

FCSH vs. VCSH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Federated Hermes Short Duration Corporate ETF (FCSH) 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, FCSH achieves a 0.40% return, which is significantly lower than VCSH's 0.62% return.

FCSH

• 1D: -0.14%
• 1M: -0.07%
• YTD: 0.40%
• 6M: 0.63%
• 1Y: 3.64%
• 3Y*: 5.10%
• 5Y*: —
• 10Y*: —

VCSH

• 1D: -0.10%
• 1M: 0.25%
• YTD: 0.62%
• 6M: 0.82%
• 1Y: 4.15%
• 3Y*: 5.56%
• 5Y*: 2.36%
• 10Y*: 2.64%

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

FCSH vs. VCSH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
FCSH Federated Hermes Short Duration Corporate ETF	0.40%	6.42%	4.66%	5.45%	-5.87%	0.08%
VCSH Vanguard Short-Term Corporate Bond ETF	0.62%	6.77%	4.91%	6.20%	-5.62%	0.03%

Correlation

The correlation between FCSH and VCSH is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (All Time) Calculated using the full available price history since Dec 17, 2021	0.93

The correlation between FCSH and VCSH has been stable across timeframes, ranging from 0.83 to 0.93 - a consistent structural relationship.

Return for Risk

FCSH vs. VCSH — Risk / Return Rank

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

FCSH

FCSH Risk / Return Rank: 59
FCSH Sharpe Ratio Rank: 56
FCSH Sortino Ratio Rank: 63
FCSH Omega Ratio Rank: 59
FCSH Calmar Ratio Rank: 61
FCSH Martin Ratio Rank: 56

VCSH

VCSH Risk / Return Rank: 71
VCSH Sharpe Ratio Rank: 70
VCSH Sortino Ratio Rank: 79
VCSH Omega Ratio Rank: 75
VCSH Calmar Ratio Rank: 62
VCSH Martin Ratio Rank: 67

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.

FCSH vs. VCSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federated Hermes Short Duration Corporate ETF (FCSH) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FCSH	VCSH	Difference
Sharpe ratio: Return per unit of total volatility	1.84	2.17	-0.33
Sortino ratio: Return per unit of downside risk	2.83	3.35	-0.52
Omega ratio: Gain probability vs. loss probability	1.36	1.42	-0.07
Calmar ratio: Return relative to maximum drawdown	2.94	2.98	-0.04
Martin ratio: Return relative to average drawdown	9.62	12.06	-2.44

FCSH vs. VCSH - Sharpe Ratio Comparison

The current FCSH Sharpe Ratio is 1.84, which is comparable to the VCSH Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of FCSH 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.

Drawdowns

FCSH vs. VCSH - Drawdown Comparison

The maximum FCSH drawdown since its inception was -8.47%, smaller than the maximum VCSH drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for FCSH and VCSH.

Drawdown Indicators

	FCSH	VCSH	Difference
Max Drawdown Largest peak-to-trough decline	-8.47%	-12.86%	+4.39%
Max Drawdown (1Y) Largest decline over 1 year	-1.24%	-1.40%	+0.16%
Max Drawdown (3Y) Largest decline over 3 years	-1.32%	-1.40%	+0.08%
Max Drawdown (5Y) Largest decline over 5 years	—	-9.48%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-12.86%	—
Current Drawdown Current decline from peak	-0.74%	-0.34%	-0.40%
Average Drawdown Average peak-to-trough decline	-2.19%	-0.96%	-1.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.38%	0.35%	+0.03%

Volatility

FCSH vs. VCSH - Volatility Comparison

Federated Hermes Short Duration Corporate ETF (FCSH) and Vanguard Short-Term Corporate Bond ETF (VCSH) have volatilities of 0.65% and 0.68%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FCSH	VCSH	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.65%	0.68%	-0.03%
Volatility (6M) Calculated over the trailing 6-month period	1.58%	1.48%	+0.10%
Volatility (1Y) Calculated over the trailing 1-year period	1.99%	1.92%	+0.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.89%	2.89%	0.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.89%	3.35%	-0.46%

FCSH vs. VCSH - Expense Ratio Comparison

FCSH has a 0.30% expense ratio, which is higher than VCSH's 0.04% expense ratio.

Dividends

FCSH vs. VCSH - Dividend Comparison

FCSH's dividend yield for the trailing twelve months is around 4.09%, less than VCSH's 4.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FCSH Federated Hermes Short Duration Corporate ETF	4.09%	4.14%	4.44%	2.31%	1.76%	0.04%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 FCSH and VCSH in my portfolio?

FCSH and VCSH have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FCSH or VCSH?

VCSH has higher volatility (0.68%) compared to FCSH (0.65%). In terms of maximum drawdown, FCSH dropped -8.47% vs VCSH's -12.86%.

Which ETF is better, FCSH or VCSH?

On 3-year performance, VCSH leads with 5.56% vs 5.10% for FCSH. On fees, VCSH is cheaper at 0.04% 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, FCSH or VCSH?

Over the 3-year period, VCSH has performed better with a 5.56% return vs 5.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FCSH or VCSH?

VCSH is cheaper with a 0.04% expense ratio, compared with 0.30% for FCSH.

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

VCSH has the higher dividend yield at 4.45%, compared with 4.09% for FCSH.

What is the main difference between FCSH and VCSH?

FCSH is categorized as Short-Term Bond, while VCSH is Corporate Bonds. They also come from different issuers: Federated and Vanguard. Their fees differ too: 0.30% for FCSH and 0.04% for VCSH.

Which has better risk-adjusted returns?

VCSH currently has the higher Sharpe Ratio (2.17 vs 1.84), 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.