IBDT vs. VCSH

Last updated Jun 4, 2026

IBDT (iShares iBonds Dec 2028 Term Corporate ETF) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both Corporate Bonds funds - IBDT tracks the Bloomberg December 2028 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, IBDT returned 1.39%/yr vs 2.32%/yr for VCSH. Their correlation of 0.81 suggests significant overlap in exposure. IBDT charges 0.10%/yr vs 0.04%/yr for VCSH.

Performance

IBDT vs. VCSH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds Dec 2028 Term Corporate ETF (IBDT) 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, IBDT achieves a 0.78% return, which is significantly higher than VCSH's 0.64% return.

IBDT

• 1D: -0.06%
• 1M: 0.27%
• YTD: 0.78%
• 6M: 1.15%
• 1Y: 4.55%
• 3Y*: 5.51%
• 5Y*: 1.39%
• 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)

IBDT vs. VCSH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
IBDT iShares iBonds Dec 2028 Term Corporate ETF	0.78%	7.02%	3.97%	7.72%	-11.42%	-1.90%	9.62%	15.15%	1.19%
VCSH Vanguard Short-Term Corporate Bond ETF	0.64%	6.77%	4.91%	6.20%	-5.62%	-0.63%	5.13%	7.02%	0.80%

Correlation

The correlation between IBDT and VCSH is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (All Time) Calculated using the full available price history since Sep 21, 2018	0.81

The correlation between IBDT and VCSH shifts across timeframes, from 0.81 (all time) to 0.93 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

IBDT vs. VCSH — Risk / Return Rank

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

IBDT

IBDT Risk / Return Rank: 88
IBDT Sharpe Ratio Rank: 85
IBDT Sortino Ratio Rank: 92
IBDT Omega Ratio Rank: 90
IBDT Calmar Ratio Rank: 83
IBDT Martin Ratio Rank: 89

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.

IBDT vs. VCSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2028 Term Corporate ETF (IBDT) 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.

	IBDT	VCSH	Difference
Sharpe ratio Return per unit of total volatility	2.81	2.45	+0.36
Sortino ratio Return per unit of downside risk	4.50	3.85	+0.66
Omega ratio Gain probability vs. loss probability	1.59	1.48	+0.11
Calmar ratio Return relative to maximum drawdown	4.44	3.29	+1.15
Martin ratio Return relative to average drawdown	20.21	13.55	+6.65
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IBDT vs. VCSH - Sharpe Ratio Comparison

The current IBDT Sharpe Ratio is 2.81, which is comparable to the VCSH Sharpe Ratio of 2.45. The chart below compares the historical Sharpe Ratios of IBDT 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

	IBDT	VCSH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.81	2.45	+0.36
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.81	-0.53
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.81	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.61	1.02	-0.41

Drawdowns

IBDT vs. VCSH - Drawdown Comparison

The maximum IBDT drawdown since its inception was -17.79%, which is greater than VCSH's maximum drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for IBDT and VCSH.

Drawdown Indicators

	IBDT	VCSH	Difference
Max Drawdown Largest peak-to-trough decline	-17.79%	-12.86%	-4.93%
Max Drawdown (1Y) Largest decline over 1 year	-1.03%	-1.40%	+0.37%
Max Drawdown (3Y) Largest decline over 3 years	-3.19%	-1.40%	-1.79%
Max Drawdown (5Y) Largest decline over 5 years	-17.68%	-9.48%	-8.20%
Max Drawdown (10Y) Largest decline over 10 years	—	-12.86%	—
Current Drawdown Current decline from peak	-0.09%	-0.32%	+0.23%
Average Drawdown Average peak-to-trough decline	-4.16%	-0.97%	-3.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.23%	0.34%	-0.11%

Volatility

IBDT vs. VCSH - Volatility Comparison

The current volatility for iShares iBonds Dec 2028 Term Corporate ETF (IBDT) is 0.34%, while Vanguard Short-Term Corporate Bond ETF (VCSH) has a volatility of 0.57%. This indicates that IBDT 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

	IBDT	VCSH	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.34%	0.57%	-0.23%
Volatility (6M) Calculated over the trailing 6-month period	1.04%	1.38%	-0.34%
Volatility (1Y) Calculated over the trailing 1-year period	1.62%	1.88%	-0.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.07%	2.88%	+2.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.37%	3.35%	+3.02%

IBDT vs. VCSH - Expense Ratio Comparison

IBDT 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

IBDT vs. VCSH - Dividend Comparison

IBDT's dividend yield for the trailing twelve months is around 4.55%, more than VCSH's 4.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IBDT iShares iBonds Dec 2028 Term Corporate ETF	4.55%	4.56%	4.67%	4.10%	3.25%	2.45%	2.80%	3.32%	1.47%	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 IBDT and VCSH in my portfolio?

With a correlation of 0.91, IBDT 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, IBDT or VCSH?

VCSH has higher volatility (0.57%) compared to IBDT (0.34%). In terms of maximum drawdown, IBDT dropped -17.79% vs VCSH's -12.86%.

Which ETF is better, IBDT or VCSH?

On 5-year performance, VCSH leads with 2.32% vs 1.39% for IBDT. On fees, VCSH is cheaper at 0.04% per year. On volatility, IBDT has been the lower-risk option at 0.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IBDT or VCSH?

Over the 5-year period, VCSH has performed better with a 2.32% return vs 1.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IBDT or VCSH?

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

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

IBDT has the higher dividend yield at 4.55%, compared with 4.45% for VCSH.

What is the main difference between IBDT and VCSH?

IBDT tracks Bloomberg December 2028 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 IBDT and 0.04% for VCSH.

Which has better risk-adjusted returns?

IBDT currently has the higher Sharpe Ratio (2.81 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.