SPSB vs. VCSH

Last updated Jun 4, 2026

SPSB (SPDR Portfolio Short Term Corporate Bond ETF) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both Corporate Bonds funds - SPSB tracks the Bloomberg Barclays U.S. 1-3 Year Corporate Bond Index while VCSH tracks the Barclays Capital U.S. 1-5 Year Corporate Index. Both are passively managed. Over the past 10 years, SPSB returned 2.63%/yr vs 2.70%/yr for VCSH. A 0.59 correlation means they provide meaningful diversification when combined. SPSB charges 0.07%/yr vs 0.04%/yr for VCSH.

Performance

SPSB vs. VCSH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR Portfolio Short Term Corporate Bond ETF (SPSB) 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, SPSB achieves a 0.84% return, which is significantly higher than VCSH's 0.64% return. Both investments have delivered pretty close results over the past 10 years, with SPSB having a 2.63% annualized return and VCSH not far ahead at 2.70%.

SPSB

• 1D: -0.07%
• 1M: 0.26%
• YTD: 0.84%
• 6M: 1.17%
• 1Y: 4.29%
• 3Y*: 5.29%
• 5Y*: 2.69%
• 10Y*: 2.63%

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%

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

SPSB vs. VCSH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPSB SPDR Portfolio Short Term Corporate Bond ETF	0.84%	5.86%	5.25%	5.60%	-3.31%	-0.20%	3.83%	5.21%	1.45%	1.58%
VCSH Vanguard Short-Term Corporate Bond ETF	0.64%	6.77%	4.91%	6.20%	-5.62%	-0.63%	5.13%	7.02%	0.92%	2.17%

Correlation

The correlation between SPSB and VCSH is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Dec 18, 2009	0.59

Over the past year, SPSB and VCSH have become more correlated (0.91) than their long-term average of 0.59, meaning their price movements have been converging.

Return for Risk

SPSB vs. VCSH — Risk / Return Rank

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

SPSB

SPSB Risk / Return Rank: 92
SPSB Sharpe Ratio Rank: 91
SPSB Sortino Ratio Rank: 95
SPSB Omega Ratio Rank: 95
SPSB Calmar Ratio Rank: 86
SPSB Martin Ratio Rank: 91

VCSH

VCSH Risk / Return Rank: 74
VCSH Sharpe Ratio Rank: 73
VCSH Sortino Ratio Rank: 84
VCSH Omega Ratio Rank: 79
VCSH Calmar Ratio Rank: 65
VCSH Martin Ratio Rank: 71

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.

SPSB vs. VCSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio Short Term Corporate Bond ETF (SPSB) 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.

	SPSB	VCSH	Difference
Sharpe ratio Return per unit of total volatility	3.25	2.45	+0.80
Sortino ratio Return per unit of downside risk	5.36	3.85	+1.52
Omega ratio Gain probability vs. loss probability	1.72	1.48	+0.24
Calmar ratio Return relative to maximum drawdown	4.94	3.29	+1.65
Martin ratio Return relative to average drawdown	22.90	13.55	+9.35
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SPSB vs. VCSH - Sharpe Ratio Comparison

The current SPSB Sharpe Ratio is 3.25, which is higher than the VCSH Sharpe Ratio of 2.45. The chart below compares the historical Sharpe Ratios of SPSB 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.

Sharpe Ratios by Period

	SPSB	VCSH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.25	2.45	+0.80
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.36	0.81	+0.55
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.86	0.81	+0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.87	1.02	-0.15

Drawdowns

SPSB vs. VCSH - Drawdown Comparison

The maximum SPSB drawdown since its inception was -11.75%, smaller than the maximum VCSH drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for SPSB and VCSH.

Drawdown Indicators

	SPSB	VCSH	Difference
Max Drawdown Largest peak-to-trough decline	-11.75%	-12.86%	+1.11%
Max Drawdown (1Y) Largest decline over 1 year	-0.87%	-1.40%	+0.53%
Max Drawdown (3Y) Largest decline over 3 years	-0.87%	-1.40%	+0.53%
Max Drawdown (5Y) Largest decline over 5 years	-5.96%	-9.48%	+3.52%
Max Drawdown (10Y) Largest decline over 10 years	-11.75%	-12.86%	+1.11%
Current Drawdown Current decline from peak	-0.14%	-0.32%	+0.18%
Average Drawdown Average peak-to-trough decline	-0.54%	-0.97%	+0.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.19%	0.34%	-0.15%

Volatility

SPSB vs. VCSH - Volatility Comparison

The current volatility for SPDR Portfolio Short Term Corporate Bond ETF (SPSB) is 0.35%, while Vanguard Short-Term Corporate Bond ETF (VCSH) has a volatility of 0.57%. This indicates that SPSB 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

	SPSB	VCSH	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.35%	0.57%	-0.22%
Volatility (6M) Calculated over the trailing 6-month period	0.94%	1.38%	-0.44%
Volatility (1Y) Calculated over the trailing 1-year period	1.33%	1.88%	-0.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.98%	2.88%	-0.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.06%	3.35%	-0.29%

SPSB vs. VCSH - Expense Ratio Comparison

SPSB has a 0.07% 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

SPSB vs. VCSH - Dividend Comparison

SPSB's dividend yield for the trailing twelve months is around 4.41%, which matches VCSH's 4.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPSB SPDR Portfolio Short Term Corporate Bond ETF	4.41%	4.55%	4.85%	4.05%	1.92%	1.19%	1.94%	2.77%	2.36%	1.94%	1.65%	1.43%
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 SPSB and VCSH in my portfolio?

With a correlation of 0.91, SPSB 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.

Which is riskier, SPSB or VCSH?

VCSH has higher volatility (0.57%) compared to SPSB (0.35%). In terms of maximum drawdown, SPSB dropped -11.75% vs VCSH's -12.86%.

Which ETF is better, SPSB or VCSH?

On 10-year performance, VCSH leads with 2.70% vs 2.63% for SPSB. On fees, VCSH is cheaper at 0.04% per year. On volatility, SPSB has been the lower-risk option at 0.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPSB or VCSH?

Over the 10-year period, VCSH has performed better with a 2.70% return vs 2.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPSB or VCSH?

VCSH is cheaper with a 0.04% expense ratio, compared with 0.07% for SPSB.

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

VCSH has the higher dividend yield at 4.45%, compared with 4.41% for SPSB.

What is the main difference between SPSB and VCSH?

SPSB tracks Bloomberg Barclays U.S. 1-3 Year Corporate Bond Index, while VCSH tracks Barclays Capital U.S. 1-5 Year Corporate Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.07% for SPSB and 0.04% for VCSH.

Which has better risk-adjusted returns?

SPSB currently has the higher Sharpe Ratio (3.25 vs 2.45), 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.