IBDQ vs. VCSH

Last updated Jun 4, 2026

IBDQ (iShares iBonds Dec 2025 Term Corporate ETF) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both Corporate Bonds funds - IBDQ tracks the Bloomberg December 2025 Maturity Corporate while VCSH tracks the Barclays Capital U.S. 1-5 Year Corporate Index. Both are passively managed. A 0.59 correlation means they provide meaningful diversification when combined. IBDQ charges 0.10%/yr vs 0.04%/yr for VCSH.

Performance

IBDQ vs. VCSH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds Dec 2025 Term Corporate ETF (IBDQ) and Vanguard Short-Term Corporate Bond ETF (VCSH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

IBDQ

• 1D: —
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VCSH

• 1D: -0.08%
• 1M: 0.20%
• YTD: 0.64%
• 6M: 0.95%
• 1Y: 4.59%
• 3Y*: 5.52%
• 5Y*: 2.32%
• 10Y*: 2.70%

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

IBDQ vs. VCSH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IBDQ iShares iBonds Dec 2025 Term Corporate ETF	0.00%	4.13%	5.12%	5.23%	-5.91%	-1.49%	8.27%	13.59%	-2.39%	6.28%
VCSH Vanguard Short-Term Corporate Bond ETF	0.64%	6.77%	4.91%	6.20%	-5.62%	-0.63%	5.13%	7.02%	0.92%	2.17%

Correlation

The correlation between IBDQ and VCSH is 0.12, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.12
Correlation (3Y) Calculated over the trailing 3-year period	0.45
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (10Y) Calculated over the trailing 10-year period	0.63
Correlation (All Time) Calculated using the full available price history since Mar 13, 2015	0.59

Over the past year, the correlation between IBDQ and VCSH has dropped to 0.12 - well below their long-term average of 0.59, suggesting their price drivers have been diverging.

Return for Risk

IBDQ vs. VCSH — Risk / Return Rank

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

VCSH

VCSH Risk / Return Rank: 74
VCSH Sharpe Ratio Rank: 73
VCSH Sortino Ratio Rank: 84
VCSH Omega Ratio Rank: 79
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.

IBDQ vs. VCSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2025 Term Corporate ETF (IBDQ) 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	IBDQ	VCSH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.45	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.81	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.81	—
Sharpe Ratio (All Time) Calculated using the full available price history	—	1.02	—

Drawdowns

Drawdown Indicators

	IBDQ	VCSH	Difference
Max Drawdown Largest peak-to-trough decline	—	-12.86%	—
Max Drawdown (1Y) Largest decline over 1 year	—	-1.40%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-1.40%	—
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	—	-0.32%	—
Average Drawdown Average peak-to-trough decline	—	-0.97%	—
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.34%	—

Volatility

Volatility by Period

	IBDQ	VCSH	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.57%	—
Volatility (6M) Calculated over the trailing 6-month period	—	1.38%	—
Volatility (1Y) Calculated over the trailing 1-year period	—	1.88%	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	—	2.88%	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	—	3.35%	—

IBDQ vs. VCSH - Expense Ratio Comparison

IBDQ has a 0.10% expense ratio, which is higher than VCSH's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

IBDQ vs. VCSH - Dividend Comparison

IBDQ's dividend yield for the trailing twelve months is around 2.08%, less than VCSH's 4.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IBDQ iShares iBonds Dec 2025 Term Corporate ETF	2.08%	3.77%	3.81%	3.27%	2.23%	2.07%	2.51%	3.21%	3.52%	3.28%	3.39%	2.64%
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 IBDQ and VCSH in my portfolio?

IBDQ and VCSH have a correlation of 0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, IBDQ or VCSH?

On fees, VCSH is cheaper at 0.04% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, IBDQ or VCSH?

VCSH is cheaper with a 0.04% expense ratio, compared with 0.10% for IBDQ.

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

VCSH has the higher dividend yield at 4.45%, compared with 2.08% for IBDQ.

What is the main difference between IBDQ and VCSH?

IBDQ tracks Bloomberg December 2025 Maturity Corporate, while VCSH tracks Barclays Capital U.S. 1-5 Year Corporate Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.10% for IBDQ and 0.04% for VCSH.