IBDU vs. VCSH

Last updated Jun 4, 2026

IBDU (iShares iBonds Dec 2029 Term Corporate ETF) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both Corporate Bonds funds - IBDU tracks the Bloomberg December 2029 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, IBDU returned 1.29%/yr vs 2.32%/yr for VCSH. Their correlation of 0.85 suggests significant overlap in exposure. IBDU charges 0.10%/yr vs 0.04%/yr for VCSH.

Performance

IBDU vs. VCSH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds Dec 2029 Term Corporate ETF (IBDU) 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, IBDU achieves a 0.54% return, which is significantly lower than VCSH's 0.64% return.

IBDU

• 1D: -0.13%
• 1M: 0.12%
• YTD: 0.54%
• 6M: 0.88%
• 1Y: 4.76%
• 3Y*: 5.73%
• 5Y*: 1.29%
• 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)

IBDU vs. VCSH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
IBDU iShares iBonds Dec 2029 Term Corporate ETF	0.54%	7.59%	3.62%	8.67%	-13.04%	-2.05%	10.38%	2.22%
VCSH Vanguard Short-Term Corporate Bond ETF	0.64%	6.77%	4.91%	6.20%	-5.62%	-0.63%	5.13%	1.30%

Correlation

The correlation between IBDU and VCSH is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (All Time) Calculated using the full available price history since Sep 20, 2019	0.85

The correlation between IBDU and VCSH has been stable across timeframes, ranging from 0.85 to 0.95 - a consistent structural relationship.

Return for Risk

IBDU vs. VCSH — Risk / Return Rank

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

IBDU

IBDU Risk / Return Rank: 65
IBDU Sharpe Ratio Rank: 63
IBDU Sortino Ratio Rank: 72
IBDU Omega Ratio Rank: 67
IBDU Calmar Ratio Rank: 61
IBDU Martin Ratio Rank: 63

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.

IBDU vs. VCSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2029 Term Corporate ETF (IBDU) 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.

	IBDU	VCSH	Difference
Sharpe ratio Return per unit of total volatility	2.12	2.45	-0.33
Sortino ratio Return per unit of downside risk	3.29	3.85	-0.56
Omega ratio Gain probability vs. loss probability	1.41	1.48	-0.07
Calmar ratio Return relative to maximum drawdown	3.02	3.29	-0.27
Martin ratio Return relative to average drawdown	11.33	13.55	-2.22
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IBDU vs. VCSH - Sharpe Ratio Comparison

The current IBDU Sharpe Ratio is 2.12, which is comparable to the VCSH Sharpe Ratio of 2.45. The chart below compares the historical Sharpe Ratios of IBDU 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

	IBDU	VCSH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.12	2.45	-0.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.81	-0.58
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.81	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	1.02	-0.69

Drawdowns

IBDU vs. VCSH - Drawdown Comparison

The maximum IBDU drawdown since its inception was -19.44%, which is greater than VCSH's maximum drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for IBDU and VCSH.

Drawdown Indicators

	IBDU	VCSH	Difference
Max Drawdown Largest peak-to-trough decline	-19.44%	-12.86%	-6.58%
Max Drawdown (1Y) Largest decline over 1 year	-1.59%	-1.40%	-0.19%
Max Drawdown (3Y) Largest decline over 3 years	-4.14%	-1.40%	-2.74%
Max Drawdown (5Y) Largest decline over 5 years	-19.44%	-9.48%	-9.96%
Max Drawdown (10Y) Largest decline over 10 years	—	-12.86%	—
Current Drawdown Current decline from peak	-0.54%	-0.32%	-0.22%
Average Drawdown Average peak-to-trough decline	-5.41%	-0.97%	-4.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.42%	0.34%	+0.08%

Volatility

IBDU vs. VCSH - Volatility Comparison

iShares iBonds Dec 2029 Term Corporate ETF (IBDU) and Vanguard Short-Term Corporate Bond ETF (VCSH) have volatilities of 0.58% and 0.57%, 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

	IBDU	VCSH	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.58%	0.57%	+0.01%
Volatility (6M) Calculated over the trailing 6-month period	1.49%	1.38%	+0.11%
Volatility (1Y) Calculated over the trailing 1-year period	2.26%	1.88%	+0.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.72%	2.88%	+2.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.32%	3.35%	+3.97%

IBDU vs. VCSH - Expense Ratio Comparison

IBDU 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

IBDU vs. VCSH - Dividend Comparison

IBDU's dividend yield for the trailing twelve months is around 4.66%, more than VCSH's 4.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IBDU iShares iBonds Dec 2029 Term Corporate ETF	4.66%	4.67%	4.75%	4.21%	3.34%	2.29%	2.42%	0.74%	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 IBDU and VCSH in my portfolio?

With a correlation of 0.94, IBDU 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, IBDU or VCSH?

IBDU has higher volatility (0.58%) compared to VCSH (0.57%). In terms of maximum drawdown, IBDU dropped -19.44% vs VCSH's -12.86%.

Which ETF is better, IBDU or VCSH?

On 5-year performance, VCSH leads with 2.32% vs 1.29% for IBDU. 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, IBDU or VCSH?

Over the 5-year period, VCSH has performed better with a 2.32% return vs 1.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IBDU or VCSH?

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

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

IBDU has the higher dividend yield at 4.66%, compared with 4.45% for VCSH.

What is the main difference between IBDU and VCSH?

IBDU tracks Bloomberg December 2029 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 IBDU and 0.04% for VCSH.

Which has better risk-adjusted returns?

VCSH currently has the higher Sharpe Ratio (2.45 vs 2.12), 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.