VBCJ vs. VCSH

Last updated Jun 6, 2026

VBCJ (Vanguard Target Maturity 2036 Corporate Bond ETF) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both Corporate Bonds funds from Vanguard - VBCJ tracks the ICE 2036 Maturity US Corporate Constrained Index while VCSH tracks the Bloomberg U.S. 1-5 Year Corporate Bond Index. Both are passively managed. Their correlation of 0.91 suggests significant overlap in exposure. VBCJ charges 0.08%/yr vs 0.04%/yr for VCSH.

Performance

VBCJ vs. VCSH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Maturity 2036 Corporate Bond ETF (VBCJ) and Vanguard Short-Term Corporate Bond ETF (VCSH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VBCJ

• 1D: -0.66%
• 1M: -0.91%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VCSH

• 1D: -0.29%
• 1M: -0.26%
• YTD: 0.41%
• 6M: 0.83%
• 1Y: 4.30%
• 3Y*: 5.47%
• 5Y*: 2.27%
• 10Y*: 2.67%

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

VBCJ vs. VCSH - Yearly Performance Comparison

	2026 (YTD)
VBCJ Vanguard Target Maturity 2036 Corporate Bond ETF	1.19%
VCSH Vanguard Short-Term Corporate Bond ETF	0.87%

Correlation

The correlation between VBCJ 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 (All Time) Calculated using the full available price history since Mar 27, 2026	0.91

Return for Risk

VBCJ vs. VCSH — Risk / Return Rank

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

VCSH

VCSH Risk / Return Rank: 73
VCSH Sharpe Ratio Rank: 72
VCSH Sortino Ratio Rank: 81
VCSH Omega Ratio Rank: 77
VCSH Calmar Ratio Rank: 64
VCSH Martin Ratio Rank: 70

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.

VBCJ vs. VCSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Maturity 2036 Corporate Bond ETF (VBCJ) 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	VBCJ	VCSH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.29	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.79	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.80	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.08	1.01	+0.06

Drawdowns

VBCJ vs. VCSH - Drawdown Comparison

The maximum VBCJ drawdown since its inception was -2.50%, smaller than the maximum VCSH drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for VBCJ and VCSH.

Drawdown Indicators

	VBCJ	VCSH	Difference
Max Drawdown Largest peak-to-trough decline	-2.50%	-12.86%	+10.36%
Max Drawdown (1Y) Largest decline over 1 year	—	-1.40%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-1.40%	—
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	-1.29%	-0.55%	-0.74%
Average Drawdown Average peak-to-trough decline	-0.67%	-0.97%	+0.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.34%	—

Volatility

Volatility by Period

	VBCJ	VCSH	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.62%	—
Volatility (6M) Calculated over the trailing 6-month period	—	1.41%	—
Volatility (1Y) Calculated over the trailing 1-year period	5.87%	1.90%	+3.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.87%	2.88%	+2.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.87%	3.35%	+2.52%

VBCJ vs. VCSH - Expense Ratio Comparison

VBCJ has a 0.08% 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

VBCJ vs. VCSH - Dividend Comparison

VBCJ's dividend yield for the trailing twelve months is around 0.91%, less than VCSH's 4.46% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBCJ Vanguard Target Maturity 2036 Corporate Bond ETF	0.91%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VCSH Vanguard Short-Term Corporate Bond ETF	4.46%	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 VBCJ and VCSH in my portfolio?

With a correlation of 0.91, VBCJ 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 ETF is better, VBCJ or VCSH?

On fees, VCSH is cheaper at 0.04% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VBCJ or VCSH?

VCSH is cheaper with a 0.04% expense ratio, compared with 0.08% for VBCJ.

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

VCSH has the higher dividend yield at 4.46%, compared with 0.91% for VBCJ.

What is the main difference between VBCJ and VCSH?

VBCJ tracks ICE 2036 Maturity US Corporate Constrained Index, while VCSH tracks Bloomberg U.S. 1-5 Year Corporate Bond Index. Their fees differ too: 0.08% for VBCJ and 0.04% for VCSH.