LONZ vs. VCSH

Last updated Jun 24, 2026

LONZ (PIMCO Senior Loan Active Exchange-Traded Fund) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both exchange-traded funds - LONZ is a Bank Loan fund actively managed by PIMCO, while VCSH is a Corporate Bonds fund tracking the Bloomberg U.S. 1-5 Year Corporate Bond Index. LONZ is actively managed, while VCSH is passively managed. Over the past 3 years, LONZ returned 7.83%/yr vs 5.59%/yr for VCSH. At a 0.21 correlation, their price movements are largely independent. LONZ charges 0.62%/yr vs 0.04%/yr for VCSH.

Performance

LONZ vs. VCSH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO Senior Loan Active Exchange-Traded Fund (LONZ) 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, LONZ achieves a 1.75% return, which is significantly higher than VCSH's 0.72% return.

LONZ

• 1D: -0.06%
• 1M: 0.23%
• YTD: 1.75%
• 6M: 1.09%
• 1Y: 5.24%
• 3Y*: 7.83%
• 5Y*: —
• 10Y*: —

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%

*Multi-year figures are annualized to reflect compound growth (CAGR)

LONZ vs. VCSH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
LONZ PIMCO Senior Loan Active Exchange-Traded Fund	1.75%	5.05%	9.85%	12.56%	0.54%
VCSH Vanguard Short-Term Corporate Bond ETF	0.72%	6.77%	4.91%	6.20%	-0.83%

Correlation

The correlation between LONZ and VCSH is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (3Y) Calculated over the trailing 3-year period	0.18
Correlation (All Time) Calculated using the full available price history since Jun 9, 2022	0.21

Return for Risk

LONZ vs. VCSH — Risk / Return Rank

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

LONZ

LONZ Risk / Return Rank: 72
LONZ Sharpe Ratio Rank: 77
LONZ Sortino Ratio Rank: 77
LONZ Omega Ratio Rank: 90
LONZ Calmar Ratio Rank: 56
LONZ Martin Ratio Rank: 63

VCSH

VCSH Risk / Return Rank: 70
VCSH Sharpe Ratio Rank: 69
VCSH Sortino Ratio Rank: 78
VCSH Omega Ratio Rank: 74
VCSH Calmar Ratio Rank: 62
VCSH Martin Ratio Rank: 67

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.

LONZ vs. VCSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO Senior Loan Active Exchange-Traded Fund (LONZ) 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.

	LONZ	VCSH	Difference
Sharpe ratio: Return per unit of total volatility	2.29	2.14	+0.15
Sortino ratio: Return per unit of downside risk	3.19	3.30	-0.10
Omega ratio: Gain probability vs. loss probability	1.54	1.42	+0.12
Calmar ratio: Return relative to maximum drawdown	2.59	2.93	-0.34
Martin ratio: Return relative to average drawdown	10.71	11.86	-1.15

LONZ vs. VCSH - Sharpe Ratio Comparison

The current LONZ Sharpe Ratio is 2.29, which is comparable to the VCSH Sharpe Ratio of 2.14. The chart below compares the historical Sharpe Ratios of LONZ 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.

Drawdowns

LONZ vs. VCSH - Drawdown Comparison

The maximum LONZ drawdown since its inception was -4.19%, smaller than the maximum VCSH drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for LONZ and VCSH.

Drawdown Indicators

	LONZ	VCSH	Difference
Max Drawdown Largest peak-to-trough decline	-4.19%	-12.86%	+8.67%
Max Drawdown (1Y) Largest decline over 1 year	-2.03%	-1.40%	-0.63%
Max Drawdown (3Y) Largest decline over 3 years	-4.19%	-1.40%	-2.79%
Max Drawdown (5Y) Largest decline over 5 years	—	-9.48%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-12.86%	—
Current Drawdown Current decline from peak	-0.28%	-0.24%	-0.04%
Average Drawdown Average peak-to-trough decline	-0.47%	-0.96%	+0.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.49%	0.35%	+0.14%

Volatility

LONZ vs. VCSH - Volatility Comparison

The current volatility for PIMCO Senior Loan Active Exchange-Traded Fund (LONZ) is 0.61%, while Vanguard Short-Term Corporate Bond ETF (VCSH) has a volatility of 0.69%. This indicates that LONZ 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

	LONZ	VCSH	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.61%	0.69%	-0.08%
Volatility (6M) Calculated over the trailing 6-month period	2.10%	1.48%	+0.62%
Volatility (1Y) Calculated over the trailing 1-year period	2.30%	1.92%	+0.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.21%	2.89%	+0.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.21%	3.35%	-0.14%

LONZ vs. VCSH - Expense Ratio Comparison

LONZ has a 0.62% expense ratio, which is higher than VCSH's 0.04% expense ratio.

Dividends

LONZ vs. VCSH - Dividend Comparison

LONZ's dividend yield for the trailing twelve months is around 8.14%, more than VCSH's 4.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LONZ PIMCO Senior Loan Active Exchange-Traded Fund	8.14%	6.60%	8.16%	8.29%	3.33%	0.00%	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

Can I hold both LONZ and VCSH in my portfolio?

LONZ and VCSH have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LONZ or VCSH?

VCSH has higher volatility (0.69%) compared to LONZ (0.61%). In terms of maximum drawdown, LONZ dropped -4.19% vs VCSH's -12.86%.

Which ETF is better, LONZ or VCSH?

On 3-year performance, LONZ leads with 7.83% vs 5.59% for VCSH. 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, LONZ or VCSH?

Over the 3-year period, LONZ has performed better with a 7.83% return vs 5.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LONZ or VCSH?

VCSH is cheaper with a 0.04% expense ratio, compared with 0.62% for LONZ.

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

LONZ has the higher dividend yield at 8.14%, compared with 4.45% for VCSH.

What is the main difference between LONZ and VCSH?

LONZ is categorized as Bank Loan, while VCSH is Corporate Bonds. They also come from different issuers: PIMCO and Vanguard. Their fees differ too: 0.62% for LONZ and 0.04% for VCSH.

Which has better risk-adjusted returns?

LONZ currently has the higher Sharpe Ratio (2.29 vs 2.14), 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.