IBDW vs. VCSH
IBDW (iShares iBonds Dec 2031 Term Corporate ETF) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both Corporate Bonds funds - IBDW tracks the Bloomberg December 2031 Maturity Corporate Index while VCSH tracks the Barclays Capital U.S. 1-5 Year Corporate Index. Both are passively managed. Over the past 3 years, IBDW returned 5.87%/yr vs 5.52%/yr for VCSH. Their correlation of 0.89 suggests significant overlap in exposure. IBDW charges 0.10%/yr vs 0.04%/yr for VCSH.
Performance
IBDW vs. VCSH - Performance Comparison
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Returns By Period
In the year-to-date period, IBDW achieves a 0.14% return, which is significantly lower than VCSH's 0.64% return.
IBDW
- 1D
- -0.10%
- 1M
- 0.11%
- YTD
- 0.14%
- 6M
- 0.26%
- 1Y
- 5.40%
- 3Y*
- 5.87%
- 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%
IBDW vs. VCSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
IBDW iShares iBonds Dec 2031 Term Corporate ETF | 0.14% | 9.07% | 2.96% | 9.40% | -17.13% | 0.36% |
VCSH Vanguard Short-Term Corporate Bond ETF | 0.64% | 6.77% | 4.91% | 6.20% | -5.62% | -0.58% |
Correlation
The correlation between IBDW and VCSH is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.92 |
Correlation (All Time) Calculated using the full available price history since Jun 25, 2021 | 0.89 |
The correlation between IBDW and VCSH has been stable across timeframes, ranging from 0.89 to 0.95 - a consistent structural relationship.
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Return for Risk
IBDW vs. VCSH — Risk / Return Rank
IBDW
VCSH
IBDW vs. VCSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2031 Term Corporate ETF (IBDW) 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.
| IBDW | VCSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.91 | ||
| Sortino ratioReturn per unit of downside risk | -1.51 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.48 | -0.21 |
| Calmar ratioReturn relative to maximum drawdown | 2.24 | 3.29 | -1.05 |
| Martin ratioReturn relative to average drawdown | 7.54 | 13.55 | -6.01 |
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
| IBDW | VCSH | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.54 | 2.45 | -0.91 |
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 | 0.06 | 1.02 | -0.95 |
Drawdowns
IBDW vs. VCSH - Drawdown Comparison
The maximum IBDW drawdown since its inception was -23.87%, which is greater than VCSH's maximum drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for IBDW and VCSH.
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Drawdown Indicators
| IBDW | VCSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.87% | -12.86% | -11.01% |
Max Drawdown (1Y)Largest decline over 1 year | -2.42% | -1.40% | -1.02% |
Max Drawdown (3Y)Largest decline over 3 years | -6.61% | -1.40% | -5.21% |
Max Drawdown (5Y)Largest decline over 5 years | — | -9.48% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -12.86% | — |
Current DrawdownCurrent decline from peak | -1.13% | -0.32% | -0.81% |
Average DrawdownAverage peak-to-trough decline | -9.47% | -0.97% | -8.50% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.72% | 0.34% | +0.38% |
Volatility
IBDW vs. VCSH - Volatility Comparison
iShares iBonds Dec 2031 Term Corporate ETF (IBDW) has a higher volatility of 1.02% compared to Vanguard Short-Term Corporate Bond ETF (VCSH) at 0.57%. This indicates that IBDW'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
| IBDW | VCSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.02% | 0.57% | +0.45% |
Volatility (6M)Calculated over the trailing 6-month period | 2.42% | 1.38% | +1.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.52% | 1.88% | +1.64% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.26% | 2.88% | +4.38% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.26% | 3.35% | +3.91% |
IBDW vs. VCSH - Expense Ratio Comparison
IBDW 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
IBDW vs. VCSH - Dividend Comparison
IBDW's dividend yield for the trailing twelve months is around 4.79%, more than VCSH's 4.45% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBDW iShares iBonds Dec 2031 Term Corporate ETF | 4.79% | 4.78% | 5.00% | 4.50% | 3.70% | 1.10% | 0.00% | 0.00% | 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
With a correlation of 0.95, IBDW 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.
IBDW has higher volatility (1.02%) compared to VCSH (0.57%). In terms of maximum drawdown, IBDW dropped -23.87% vs VCSH's -12.86%.
On 3-year performance, IBDW leads with 5.87% vs 5.52% for VCSH. On fees, VCSH is cheaper at 0.04% per year. On volatility, VCSH has been the lower-risk option at 0.57%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, IBDW has performed better with a 5.87% return vs 5.52%. 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 IBDW.
IBDW has the higher dividend yield at 4.79%, compared with 4.45% for VCSH.
IBDW tracks Bloomberg December 2031 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 IBDW and 0.04% for VCSH.
VCSH currently has the higher Sharpe Ratio (2.45 vs 1.54), 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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