ISTB vs. VCSH
ISTB (iShares Core 1-5 Year USD Bond ETF) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both exchange-traded funds - ISTB is a Short-Term Bond fund tracking the BBG US Universal 1-5 Year Index (USD), while VCSH is a Corporate Bonds fund tracking the Bloomberg U.S. 1-5 Year Corporate Bond Index. Both are passively managed. Over the past 10 years, ISTB returned 2.24%/yr vs 2.65%/yr for VCSH. A 0.73 correlation means they provide meaningful diversification when combined. ISTB charges 0.06%/yr vs 0.04%/yr for VCSH.
Performance
ISTB vs. VCSH - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, ISTB achieves a 0.53% return, which is significantly lower than VCSH's 0.72% return. Over the past 10 years, ISTB has underperformed VCSH with an annualized return of 2.24%, while VCSH has yielded a comparatively higher 2.65% annualized return.
ISTB
- 1D
- 0.08%
- 1M
- 0.27%
- YTD
- 0.53%
- 6M
- 0.69%
- 1Y
- 3.65%
- 3Y*
- 5.01%
- 5Y*
- 1.91%
- 10Y*
- 2.24%
VCSH
- 1D
- 0.10%
- 1M
- 0.35%
- YTD
- 0.72%
- 6M
- 0.95%
- 1Y
- 4.09%
- 3Y*
- 5.59%
- 5Y*
- 2.37%
- 10Y*
- 2.65%
ISTB vs. VCSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ISTB iShares Core 1-5 Year USD Bond ETF | 0.53% | 6.36% | 4.37% | 5.56% | -6.08% | -0.71% | 4.75% | 5.61% | 1.02% | 1.72% |
VCSH Vanguard Short-Term Corporate Bond ETF | 0.72% | 6.77% | 4.91% | 6.20% | -5.62% | -0.63% | 5.13% | 7.02% | 0.92% | 2.17% |
Correlation
The correlation between ISTB and VCSH is 0.93, 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 | 0.93 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.94 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.83 |
Correlation (All Time) Calculated using the full available price history since Oct 24, 2012 | 0.73 |
Over the past year, ISTB and VCSH have become more correlated (0.93) than their long-term average of 0.73, meaning their price movements have been converging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
ISTB vs. VCSH — Risk / Return Rank
ISTB
VCSH
ISTB vs. VCSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core 1-5 Year USD Bond ETF (ISTB) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| ISTB | VCSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.10 | ||
| Sortino ratioReturn per unit of downside risk | -0.15 | ||
| Omega ratioGain probability vs. loss probability | 1.39 | 1.42 | -0.02 |
| Calmar ratioReturn relative to maximum drawdown | 2.91 | 2.93 | -0.02 |
| Martin ratioReturn relative to average drawdown | 10.69 | 11.86 | -1.17 |
Loading charts...
Drawdowns
ISTB vs. VCSH - Drawdown Comparison
The maximum ISTB drawdown since its inception was -9.34%, smaller than the maximum VCSH drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for ISTB and VCSH.
Loading charts...
Drawdown Indicators
| ISTB | VCSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -9.34% | -12.86% | +3.52% |
Max Drawdown (1Y)Largest decline over 1 year | -1.26% | -1.40% | +0.14% |
Max Drawdown (3Y)Largest decline over 3 years | -1.36% | -1.40% | +0.04% |
Max Drawdown (5Y)Largest decline over 5 years | -9.34% | -9.48% | +0.14% |
Max Drawdown (10Y)Largest decline over 10 years | -9.34% | -12.86% | +3.52% |
Current DrawdownCurrent decline from peak | -0.38% | -0.24% | -0.14% |
Average DrawdownAverage peak-to-trough decline | -1.22% | -0.96% | -0.26% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.34% | 0.35% | -0.01% |
Volatility
ISTB vs. VCSH - Volatility Comparison
The current volatility for iShares Core 1-5 Year USD Bond ETF (ISTB) is 0.64%, while Vanguard Short-Term Corporate Bond ETF (VCSH) has a volatility of 0.69%. This indicates that ISTB 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.
Loading charts...
Volatility by Period
| ISTB | VCSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.64% | 0.69% | -0.05% |
Volatility (6M)Calculated over the trailing 6-month period | 1.36% | 1.48% | -0.12% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.79% | 1.92% | -0.13% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.80% | 2.89% | -0.09% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.51% | 3.35% | -0.84% |
ISTB vs. VCSH - Expense Ratio Comparison
ISTB has a 0.06% 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
ISTB vs. VCSH - Dividend Comparison
ISTB's dividend yield for the trailing twelve months is around 4.25%, less than VCSH's 4.45% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ISTB iShares Core 1-5 Year USD Bond ETF | 4.25% | 4.12% | 3.83% | 2.97% | 2.01% | 1.69% | 2.20% | 2.75% | 2.57% | 2.06% | 1.90% | 1.58% |
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 0.93, ISTB 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.
VCSH has higher volatility (0.69%) compared to ISTB (0.64%). In terms of maximum drawdown, ISTB dropped -9.34% vs VCSH's -12.86%.
On 10-year performance, VCSH leads with 2.65% vs 2.24% for ISTB. 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.
Over the 10-year period, VCSH has performed better with a 2.65% return vs 2.24%. 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 0.06% for ISTB.
VCSH has the higher dividend yield at 4.45%, compared with 4.25% for ISTB.
ISTB is categorized as Short-Term Bond, while VCSH is Corporate Bonds. ISTB tracks BBG US Universal 1-5 Year Index (USD), while VCSH tracks Bloomberg U.S. 1-5 Year Corporate Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.06% for ISTB and 0.04% for VCSH.
VCSH currently has the higher Sharpe Ratio (2.14 vs 2.05), 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.
Find the right allocation for ISTB and VCSH
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer