LQDB vs. VCSH
LQDB (iShares BBB Rated Corporate Bond ETF) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both Corporate Bonds funds - LQDB tracks the iBoxx USD Liquid Investment Grade BBB 0+ Index while VCSH tracks the Barclays Capital U.S. 1-5 Year Corporate Index. Both are passively managed. Over the past 5 years, LQDB returned 0.84%/yr vs 2.32%/yr for VCSH. Their correlation of 0.86 suggests significant overlap in exposure. LQDB charges 0.15%/yr vs 0.04%/yr for VCSH.
Performance
LQDB vs. VCSH - Performance Comparison
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Returns By Period
In the year-to-date period, LQDB achieves a 0.77% return, which is significantly higher than VCSH's 0.64% return.
LQDB
- 1D
- -0.18%
- 1M
- 0.58%
- YTD
- 0.77%
- 6M
- 0.56%
- 1Y
- 5.96%
- 3Y*
- 5.59%
- 5Y*
- 0.84%
- 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%
LQDB vs. VCSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
LQDB iShares BBB Rated Corporate Bond ETF | 0.77% | 7.50% | 2.37% | 9.60% | -15.51% | 2.35% |
VCSH Vanguard Short-Term Corporate Bond ETF | 0.64% | 6.77% | 4.91% | 6.20% | -5.62% | -0.64% |
Correlation
The correlation between LQDB and VCSH is 0.85, 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 | 0.85 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.87 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.86 |
Correlation (All Time) Calculated using the full available price history since May 21, 2021 | 0.86 |
The correlation between LQDB and VCSH has been stable across timeframes, ranging from 0.85 to 0.87 - a consistent structural relationship.
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Return for Risk
LQDB vs. VCSH — Risk / Return Rank
LQDB
VCSH
LQDB vs. VCSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares BBB Rated Corporate Bond ETF (LQDB) 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.
| LQDB | VCSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.98 | ||
| Sortino ratioReturn per unit of downside risk | -1.69 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.48 | -0.22 |
| Calmar ratioReturn relative to maximum drawdown | 2.24 | 3.29 | -1.05 |
| Martin ratioReturn relative to average drawdown | 6.94 | 13.55 | -6.61 |
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
| LQDB | VCSH | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.47 | 2.45 | -0.98 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.12 | 0.81 | -0.69 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.81 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.15 | 1.02 | -0.87 |
Drawdowns
LQDB vs. VCSH - Drawdown Comparison
The maximum LQDB drawdown since its inception was -21.63%, which is greater than VCSH's maximum drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for LQDB and VCSH.
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Drawdown Indicators
| LQDB | VCSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -21.63% | -12.86% | -8.77% |
Max Drawdown (1Y)Largest decline over 1 year | -2.67% | -1.40% | -1.27% |
Max Drawdown (3Y)Largest decline over 3 years | -5.90% | -1.40% | -4.50% |
Max Drawdown (5Y)Largest decline over 5 years | -21.63% | -9.48% | -12.15% |
Max Drawdown (10Y)Largest decline over 10 years | — | -12.86% | — |
Current DrawdownCurrent decline from peak | -0.83% | -0.32% | -0.51% |
Average DrawdownAverage peak-to-trough decline | -7.93% | -0.97% | -6.96% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.86% | 0.34% | +0.52% |
Volatility
LQDB vs. VCSH - Volatility Comparison
iShares BBB Rated Corporate Bond ETF (LQDB) has a higher volatility of 1.31% compared to Vanguard Short-Term Corporate Bond ETF (VCSH) at 0.57%. This indicates that LQDB'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
| LQDB | VCSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.31% | 0.57% | +0.74% |
Volatility (6M)Calculated over the trailing 6-month period | 3.08% | 1.38% | +1.70% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.07% | 1.88% | +2.19% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.87% | 2.88% | +3.99% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.85% | 3.35% | +3.50% |
LQDB vs. VCSH - Expense Ratio Comparison
LQDB has a 0.15% 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
LQDB vs. VCSH - Dividend Comparison
LQDB's dividend yield for the trailing twelve months is around 4.70%, more than VCSH's 4.45% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LQDB iShares BBB Rated Corporate Bond ETF | 4.70% | 4.65% | 4.46% | 3.90% | 4.14% | 1.32% | 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
LQDB and VCSH have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LQDB has higher volatility (1.31%) compared to VCSH (0.57%). In terms of maximum drawdown, LQDB dropped -21.63% vs VCSH's -12.86%.
On 5-year performance, VCSH leads with 2.32% vs 0.84% for LQDB. 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 5-year period, VCSH has performed better with a 2.32% return vs 0.84%. 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 0.15% for LQDB.
LQDB has the higher dividend yield at 4.70%, compared with 4.45% for VCSH.
LQDB tracks iBoxx USD Liquid Investment Grade BBB 0+ 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: 0.15% for LQDB and 0.04% for VCSH.
VCSH currently has the higher Sharpe Ratio (2.45 vs 1.47), 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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