FLCO vs. VCSH
FLCO (Franklin Liberty Investment Grade Corporate ETF) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both Corporate Bonds funds. FLCO is actively managed, while VCSH is passively managed. Over the past 5 years, FLCO returned -0.59%/yr vs 2.30%/yr for VCSH. Their 0.74 correlation means they have sometimes moved together and sometimes differently. FLCO charges 0.35%/yr vs 0.04%/yr for VCSH.
Performance
FLCO vs. VCSH - Performance Comparison
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Returns By Period
In the year-to-date period, FLCO achieves a -0.84% return, which is significantly lower than VCSH's 0.79% return.
FLCO
- 1D
- -0.19%
- 1M
- -1.66%
- 6M
- -1.11%
- YTD
- -0.84%
- 1Y
- 1.48%
- 3Y*
- 4.57%
- 5Y*
- -0.59%
- 10Y*
- —
- ALL TIME*
- 1.98%
VCSH
- 1D
- -0.06%
- 1M
- -0.22%
- 6M
- 0.39%
- YTD
- 0.79%
- 1Y
- 3.07%
- 3Y*
- 5.46%
- 5Y*
- 2.30%
- 10Y*
- 2.64%
- ALL TIME*
- 2.89%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $2.90M | $1.79M | $1.34M | |
| $304.83M | $291.45M | $343.43M |
FLCO vs. VCSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FLCO Franklin Liberty Investment Grade Corporate ETF | -0.84% | 7.53% | 1.93% | 7.94% | -16.08% | -2.06% | 10.01% | 14.82% | -3.06% | 5.98% |
VCSH Vanguard Short-Term Corporate Bond ETF | 0.79% | 6.77% | 4.91% | 6.20% | -5.62% | -0.63% | 5.13% | 7.02% | 0.92% | 2.17% |
Correlation
The correlation between FLCO and VCSH is 0.86, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.86 |
Correlation (3Y) Balances recent behavior with more history. | 0.86 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.86 |
Correlation (All Time) Calculated using the full available price history since Oct 5, 2016 | 0.74 |
The correlation between FLCO and VCSH shifts across timeframes, from 0.74 (all time) to 0.86 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
FLCO vs. VCSH — Risk / Return Rank
FLCO
VCSH
FLCO vs. VCSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Franklin Liberty Investment Grade Corporate ETF (FLCO) 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.
| FLCO | VCSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.37 | ||
| Sortino ratioReturn per unit of downside risk | -2.08 | ||
| Omega ratioGain probability vs. loss probability | 1.09 | 1.36 | -0.27 |
| Calmar ratioReturn relative to maximum drawdown | 0.82 | 2.61 | -1.79 |
| Martin ratioReturn relative to average drawdown | 2.16 | 10.26 | -8.10 |
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Drawdowns
FLCO vs. VCSH - Drawdown Comparison
The maximum FLCO drawdown since its inception was -22.71%, which is greater than VCSH's maximum drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for FLCO and VCSH.
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Drawdown Indicators
| FLCO | VCSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.71% | -12.86% | -9.85% |
Max Drawdown (1Y)Largest decline over 1 year | -2.76% | -1.40% | -1.36% |
Max Drawdown (3Y)Largest decline over 3 years | -5.36% | -1.40% | -3.96% |
Max Drawdown (5Y)Largest decline over 5 years | -22.48% | -9.48% | -13.00% |
Max Drawdown (10Y)Largest decline over 10 years | — | -12.86% | — |
Current DrawdownCurrent decline from peak | -3.58% | -0.29% | -3.29% |
Average DrawdownAverage peak-to-trough decline | -5.82% | -0.96% | -4.86% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.04% | 0.36% | +0.68% |
Volatility
FLCO vs. VCSH - Volatility Comparison
Franklin Liberty Investment Grade Corporate ETF (FLCO) has a higher volatility of 1.19% compared to Vanguard Short-Term Corporate Bond ETF (VCSH) at 0.55%. This indicates that FLCO's price experiences larger fluctuations and is considered to be riskier than VCSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FLCO | VCSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.19% | 0.55% | +0.64% |
Volatility (6M)Calculated over the trailing 6-month period | 3.43% | 1.56% | +1.87% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.37% | 1.94% | +2.43% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.14% | 2.90% | +4.24% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.80% | 3.35% | +3.45% |
FLCO vs. VCSH - Expense Ratio Comparison
FLCO has a 0.35% expense ratio, which is higher than VCSH's 0.04% expense ratio.
Dividends
FLCO vs. VCSH - Dividend Comparison
FLCO's dividend yield for the trailing twelve months is around 4.75%, more than VCSH's 4.46% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FLCO Franklin Liberty Investment Grade Corporate ETF | 4.32% | 4.60% | 4.63% | 3.83% | 3.85% | 2.85% | 3.99% | 3.39% | 3.86% | 3.33% | 0.51% | 0.00% |
VCSH Vanguard Short-Term Corporate Bond ETF | 4.08% | 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
FLCO and VCSH have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FLCO has higher volatility (1.19%) compared to VCSH (0.55%). In terms of maximum drawdown, FLCO dropped -22.71% vs VCSH's -12.86%.
On 5-year performance, VCSH leads with 2.30% vs -0.59% for FLCO. On fees, VCSH is cheaper at 0.04% per year. On volatility, VCSH has been the lower-risk option at 0.55%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VCSH has performed better with a 2.30% return vs -0.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCSH is cheaper with a 0.04% expense ratio, compared with 0.35% for FLCO.
FLCO has the higher dividend yield at 4.32%, compared with 4.08% for VCSH.
They also come from different issuers: Franklin Templeton and Vanguard. Their fees differ too: 0.35% for FLCO and 0.04% for VCSH.
VCSH currently has the higher Sharpe Ratio (1.89 vs 0.52), 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.
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