IBDS vs. VCSH
IBDS (iShares iBonds Dec 2027 Term Corporate ETF) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both Corporate Bonds funds - IBDS tracks the Bloomberg Barclays December 2027 Maturity Corporate Index while VCSH tracks the Barclays Capital U.S. 1-5 Year Corporate Index. Both are passively managed. Over the past 5 years, IBDS returned 1.45%/yr vs 2.32%/yr for VCSH. A 0.80 correlation means they provide meaningful diversification when combined. IBDS charges 0.10%/yr vs 0.04%/yr for VCSH.
Performance
IBDS vs. VCSH - Performance Comparison
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Returns By Period
In the year-to-date period, IBDS achieves a 1.23% return, which is significantly higher than VCSH's 0.64% return.
IBDS
- 1D
- -0.04%
- 1M
- 0.31%
- YTD
- 1.23%
- 6M
- 1.61%
- 1Y
- 4.57%
- 3Y*
- 5.28%
- 5Y*
- 1.45%
- 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%
IBDS vs. VCSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IBDS iShares iBonds Dec 2027 Term Corporate ETF | 1.23% | 5.86% | 4.61% | 6.44% | -9.52% | -1.56% | 8.95% | 15.08% | -2.76% | 1.14% |
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% | -0.25% |
Correlation
The correlation between IBDS and VCSH is 0.80, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.80 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.89 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.89 |
Correlation (All Time) Calculated using the full available price history since Sep 15, 2017 | 0.80 |
The correlation between IBDS and VCSH has been stable across timeframes, ranging from 0.80 to 0.89 - a consistent structural relationship.
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Return for Risk
IBDS vs. VCSH — Risk / Return Rank
IBDS
VCSH
IBDS vs. VCSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2027 Term Corporate ETF (IBDS) 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.
| IBDS | VCSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.74 | ||
| Sortino ratioReturn per unit of downside risk | +4.19 | ||
| Omega ratioGain probability vs. loss probability | 2.09 | 1.48 | +0.61 |
| Calmar ratioReturn relative to maximum drawdown | 10.55 | 3.29 | +7.26 |
| Martin ratioReturn relative to average drawdown | 48.73 | 13.55 | +35.18 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| IBDS | VCSH | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 4.19 | 2.45 | +1.74 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.35 | 0.81 | -0.46 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.81 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.57 | 1.02 | -0.45 |
Drawdowns
IBDS vs. VCSH - Drawdown Comparison
The maximum IBDS drawdown since its inception was -16.75%, which is greater than VCSH's maximum drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for IBDS and VCSH.
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Drawdown Indicators
| IBDS | VCSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.75% | -12.86% | -3.89% |
Max Drawdown (1Y)Largest decline over 1 year | -0.43% | -1.40% | +0.97% |
Max Drawdown (3Y)Largest decline over 3 years | -2.27% | -1.40% | -0.87% |
Max Drawdown (5Y)Largest decline over 5 years | -14.98% | -9.48% | -5.50% |
Max Drawdown (10Y)Largest decline over 10 years | — | -12.86% | — |
Current DrawdownCurrent decline from peak | -0.06% | -0.32% | +0.26% |
Average DrawdownAverage peak-to-trough decline | -3.36% | -0.97% | -2.39% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.09% | 0.34% | -0.25% |
Volatility
IBDS vs. VCSH - Volatility Comparison
The current volatility for iShares iBonds Dec 2027 Term Corporate ETF (IBDS) is 0.15%, while Vanguard Short-Term Corporate Bond ETF (VCSH) has a volatility of 0.57%. This indicates that IBDS 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.
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Volatility by Period
| IBDS | VCSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.15% | 0.57% | -0.42% |
Volatility (6M)Calculated over the trailing 6-month period | 0.64% | 1.38% | -0.74% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.10% | 1.88% | -0.78% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.18% | 2.88% | +1.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.55% | 3.35% | +2.20% |
IBDS vs. VCSH - Expense Ratio Comparison
IBDS 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
IBDS vs. VCSH - Dividend Comparison
IBDS's dividend yield for the trailing twelve months is around 4.32%, less than VCSH's 4.45% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBDS iShares iBonds Dec 2027 Term Corporate ETF | 4.32% | 4.36% | 4.37% | 3.81% | 2.87% | 2.19% | 2.66% | 3.32% | 3.66% | 0.97% | 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
IBDS and VCSH have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCSH has higher volatility (0.57%) compared to IBDS (0.15%). In terms of maximum drawdown, IBDS dropped -16.75% vs VCSH's -12.86%.
On 5-year performance, VCSH leads with 2.32% vs 1.45% for IBDS. On fees, VCSH is cheaper at 0.04% per year. On volatility, IBDS has been the lower-risk option at 0.15%. 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 2.32% return vs 1.45%. 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 0.10% for IBDS.
VCSH has the higher dividend yield at 4.45%, compared with 4.32% for IBDS.
IBDS tracks Bloomberg Barclays December 2027 Maturity Corporate Index, 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 IBDS and 0.04% for VCSH.
IBDS currently has the higher Sharpe Ratio (4.19 vs 2.45), 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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