PCEWX vs. VSTBX

Last updated Jun 23, 2026

PCEWX (PIMCO Climate Bond Fund) and VSTBX (Vanguard Short-Term Corporate Bond Index Fund Institutional Shares) are both Corporate Bonds funds. Over the past 5 years, PCEWX returned 0.73%/yr vs 2.45%/yr for VSTBX. Their correlation of 0.84 suggests significant overlap in exposure. PCEWX charges 0.71%/yr vs 0.05%/yr for VSTBX.

Performance

PCEWX vs. VSTBX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO Climate Bond Fund (PCEWX) and Vanguard Short-Term Corporate Bond Index Fund Institutional Shares (VSTBX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PCEWX achieves a 0.31% return, which is significantly lower than VSTBX's 0.73% return.

PCEWX

• 1D: 0.11%
• 1M: 0.84%
• YTD: 0.31%
• 6M: -0.29%
• 1Y: 2.84%
• 3Y*: 5.09%
• 5Y*: 0.73%
• 10Y*: —

VSTBX

• 1D: 0.15%
• 1M: 0.34%
• YTD: 0.73%
• 6M: 0.88%
• 1Y: 4.27%
• 3Y*: 5.73%
• 5Y*: 2.45%
• 10Y*: 2.99%

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

PCEWX vs. VSTBX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
PCEWX PIMCO Climate Bond Fund	0.31%	5.87%	3.47%	8.17%	-13.18%	0.11%	6.61%	0.00%
VSTBX Vanguard Short-Term Corporate Bond Index Fund Institutional Shares	0.73%	6.75%	5.37%	6.17%	-5.73%	-0.41%	5.07%	0.29%

Correlation

The correlation between PCEWX and VSTBX is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (All Time) Calculated using the full available price history since Dec 10, 2019	0.84

The correlation between PCEWX and VSTBX has been stable across timeframes, ranging from 0.78 to 0.85 - a consistent structural relationship.

Return for Risk

PCEWX vs. VSTBX — Risk / Return Rank

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

PCEWX

PCEWX Risk / Return Rank: 10
PCEWX Sharpe Ratio Rank: 11
PCEWX Sortino Ratio Rank: 11
PCEWX Omega Ratio Rank: 11
PCEWX Calmar Ratio Rank: 9
PCEWX Martin Ratio Rank: 9

VSTBX

VSTBX Risk / Return Rank: 81
VSTBX Sharpe Ratio Rank: 82
VSTBX Sortino Ratio Rank: 86
VSTBX Omega Ratio Rank: 82
VSTBX Calmar Ratio Rank: 78
VSTBX Martin Ratio Rank: 74

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.

PCEWX vs. VSTBX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO Climate Bond Fund (PCEWX) and Vanguard Short-Term Corporate Bond Index Fund Institutional Shares (VSTBX). 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.

	PCEWX	VSTBX	Difference
Sharpe ratio: Return per unit of total volatility	0.85	2.48	-1.62
Sortino ratio: Return per unit of downside risk	1.26	3.79	-2.53
Omega ratio: Gain probability vs. loss probability	1.16	1.49	-0.34
Calmar ratio: Return relative to maximum drawdown	0.84	3.35	-2.51
Martin ratio: Return relative to average drawdown	2.45	13.18	-10.73

PCEWX vs. VSTBX - Sharpe Ratio Comparison

The current PCEWX Sharpe Ratio is 0.85, which is lower than the VSTBX Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of PCEWX and VSTBX, 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

PCEWX vs. VSTBX - Drawdown Comparison

The maximum PCEWX drawdown since its inception was -17.54%, which is greater than VSTBX's maximum drawdown of -9.34%. Use the drawdown chart below to compare losses from any high point for PCEWX and VSTBX.

Drawdown Indicators

	PCEWX	VSTBX	Difference
Max Drawdown Largest peak-to-trough decline	-17.54%	-9.34%	-8.20%
Max Drawdown (1Y) Largest decline over 1 year	-3.39%	-1.31%	-2.08%
Max Drawdown (3Y) Largest decline over 3 years	-3.39%	-1.31%	-2.08%
Max Drawdown (5Y) Largest decline over 5 years	-17.54%	-9.34%	-8.20%
Max Drawdown (10Y) Largest decline over 10 years	—	-9.34%	—
Current Drawdown Current decline from peak	-1.38%	-0.24%	-1.14%
Average Drawdown Average peak-to-trough decline	-4.91%	-0.95%	-3.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.16%	0.33%	+0.83%

Volatility

PCEWX vs. VSTBX - Volatility Comparison

PIMCO Climate Bond Fund (PCEWX) has a higher volatility of 1.01% compared to Vanguard Short-Term Corporate Bond Index Fund Institutional Shares (VSTBX) at 0.66%. This indicates that PCEWX's price experiences larger fluctuations and is considered to be riskier than VSTBX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PCEWX	VSTBX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.01%	0.66%	+0.35%
Volatility (6M) Calculated over the trailing 6-month period	2.77%	1.34%	+1.43%
Volatility (1Y) Calculated over the trailing 1-year period	3.35%	1.78%	+1.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.37%	2.72%	+1.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.49%	2.38%	+2.11%

PCEWX vs. VSTBX - Expense Ratio Comparison

PCEWX has a 0.71% expense ratio, which is higher than VSTBX's 0.05% expense ratio.

Dividends

PCEWX vs. VSTBX - Dividend Comparison

PCEWX's dividend yield for the trailing twelve months is around 3.28%, less than VSTBX's 4.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PCEWX PIMCO Climate Bond Fund	3.28%	3.34%	3.52%	2.53%	5.55%	2.56%	2.15%	0.00%	0.00%	0.00%	0.00%	0.00%
VSTBX Vanguard Short-Term Corporate Bond Index Fund Institutional Shares	4.44%	4.34%	4.29%	3.09%	2.00%	1.80%	2.27%	5.40%	2.67%	2.27%	1.96%	2.25%

Frequently Asked Questions

Can I hold both PCEWX and VSTBX in my portfolio?

PCEWX and VSTBX have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PCEWX or VSTBX?

PCEWX has higher volatility (1.01%) compared to VSTBX (0.66%). In terms of maximum drawdown, PCEWX dropped -17.54% vs VSTBX's -9.34%.

Which has better risk-adjusted returns?

VSTBX currently has the higher Sharpe Ratio (2.48 vs 0.85), 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.