VCEB vs. EUSB

Last updated Jun 4, 2026

VCEB (Vanguard ESG U.S. Corporate Bond ETF) and EUSB (iShares ESG Advanced Total USD Bond Market ETF) are both exchange-traded funds - VCEB is a Corporate Bonds fund tracking the Bloomberg Barclays MSCI US Corp SRI Select Index, while EUSB is a Intermediate Core-Plus Bond fund tracking the Bloomberg MSCI US Universal Choice ESG Screened Index. Both are passively managed. Over the past 5 years, VCEB returned 0.51%/yr vs 0.34%/yr for EUSB. Their correlation of 0.90 suggests significant overlap in exposure. Both charge a 0.12% expense ratio.

Performance

VCEB vs. EUSB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard ESG U.S. Corporate Bond ETF (VCEB) and iShares ESG Advanced Total USD Bond Market ETF (EUSB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VCEB achieves a 0.32% return, which is significantly higher than EUSB's 0.13% return.

VCEB

• 1D: -0.18%
• 1M: 0.67%
• YTD: 0.32%
• 6M: 0.15%
• 1Y: 5.34%
• 3Y*: 5.05%
• 5Y*: 0.51%
• 10Y*: —

EUSB

• 1D: -0.20%
• 1M: 0.27%
• YTD: 0.13%
• 6M: 0.19%
• 1Y: 5.15%
• 3Y*: 4.27%
• 5Y*: 0.34%
• 10Y*: —

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

VCEB vs. EUSB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
VCEB Vanguard ESG U.S. Corporate Bond ETF	0.32%	7.48%	2.23%	8.52%	-15.15%	-1.99%	2.46%
EUSB iShares ESG Advanced Total USD Bond Market ETF	0.13%	7.45%	1.83%	5.80%	-12.81%	-1.29%	0.69%

Correlation

The correlation between VCEB and EUSB is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (All Time) Calculated using the full available price history since Sep 25, 2020	0.90

The correlation between VCEB and EUSB has been stable across timeframes, ranging from 0.90 to 0.92 - a consistent structural relationship.

Return for Risk

VCEB vs. EUSB — Risk / Return Rank

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

VCEB

VCEB Risk / Return Rank: 36
VCEB Sharpe Ratio Rank: 35
VCEB Sortino Ratio Rank: 35
VCEB Omega Ratio Rank: 33
VCEB Calmar Ratio Rank: 38
VCEB Martin Ratio Rank: 37

EUSB

EUSB Risk / Return Rank: 41
EUSB Sharpe Ratio Rank: 40
EUSB Sortino Ratio Rank: 43
EUSB Omega Ratio Rank: 39
EUSB Calmar Ratio Rank: 42
EUSB Martin Ratio Rank: 39

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.

VCEB vs. EUSB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard ESG U.S. Corporate Bond ETF (VCEB) and iShares ESG Advanced Total USD Bond Market ETF (EUSB). 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.

	VCEB	EUSB	Difference
Sharpe ratio Return per unit of total volatility	1.28	1.45	-0.18
Sortino ratio Return per unit of downside risk	1.87	2.19	-0.32
Omega ratio Gain probability vs. loss probability	1.22	1.26	-0.03
Calmar ratio Return relative to maximum drawdown	1.90	2.09	-0.19
Martin ratio Return relative to average drawdown	5.87	6.26	-0.39
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VCEB vs. EUSB - Sharpe Ratio Comparison

The current VCEB Sharpe Ratio is 1.28, which is comparable to the EUSB Sharpe Ratio of 1.45. The chart below compares the historical Sharpe Ratios of VCEB and EUSB, 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

	VCEB	EUSB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.28	1.45	-0.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.08	0.06	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.05	0.04	+0.01

Drawdowns

VCEB vs. EUSB - Drawdown Comparison

The maximum VCEB drawdown since its inception was -21.60%, which is greater than EUSB's maximum drawdown of -17.87%. Use the drawdown chart below to compare losses from any high point for VCEB and EUSB.

Drawdown Indicators

	VCEB	EUSB	Difference
Max Drawdown Largest peak-to-trough decline	-21.60%	-17.87%	-3.73%
Max Drawdown (1Y) Largest decline over 1 year	-2.82%	-2.48%	-0.34%
Max Drawdown (3Y) Largest decline over 3 years	-6.09%	-5.76%	-0.33%
Max Drawdown (5Y) Largest decline over 5 years	-21.39%	-17.45%	-3.94%
Current Drawdown Current decline from peak	-1.05%	-1.36%	+0.31%
Average Drawdown Average peak-to-trough decline	-7.63%	-6.50%	-1.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.91%	0.82%	+0.09%

Volatility

VCEB vs. EUSB - Volatility Comparison

Vanguard ESG U.S. Corporate Bond ETF (VCEB) has a higher volatility of 1.32% compared to iShares ESG Advanced Total USD Bond Market ETF (EUSB) at 1.17%. This indicates that VCEB's price experiences larger fluctuations and is considered to be riskier than EUSB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCEB	EUSB	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.32%	1.17%	+0.15%
Volatility (6M) Calculated over the trailing 6-month period	3.11%	2.49%	+0.62%
Volatility (1Y) Calculated over the trailing 1-year period	4.19%	3.57%	+0.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.84%	5.77%	+1.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.66%	5.41%	+1.25%

VCEB vs. EUSB - Expense Ratio Comparison

Both VCEB and EUSB have an expense ratio of 0.12%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VCEB vs. EUSB - Dividend Comparison

VCEB's dividend yield for the trailing twelve months is around 4.65%, more than EUSB's 3.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
EUSB iShares ESG Advanced Total USD Bond Market ETF	3.97%	3.84%	3.67%	3.08%	2.21%	1.10%	0.57%
VCEB Vanguard ESG U.S. Corporate Bond ETF	4.65%	4.57%	4.47%	3.70%	2.84%	1.69%	0.43%

Frequently Asked Questions

Can I hold both VCEB and EUSB in my portfolio?

With a correlation of 0.92, VCEB and EUSB 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, VCEB or EUSB?

VCEB has higher volatility (1.32%) compared to EUSB (1.17%). In terms of maximum drawdown, VCEB dropped -21.60% vs EUSB's -17.87%.

Which ETF is better, VCEB or EUSB?

On 5-year performance, VCEB leads with 0.51% vs 0.34% for EUSB. Both ETFs have the same 0.12% expense ratio. On volatility, EUSB has been the lower-risk option at 1.17%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VCEB or EUSB?

Over the 5-year period, VCEB has performed better with a 0.51% return vs 0.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VCEB or EUSB?

VCEB and EUSB have the same expense ratio: 0.12% per year.

Which ETF pays a higher dividend yield, VCEB or EUSB?

VCEB has the higher dividend yield at 4.65%, compared with 3.97% for EUSB.

What is the main difference between VCEB and EUSB?

VCEB is categorized as Corporate Bonds, while EUSB is Intermediate Core-Plus Bond. VCEB tracks Bloomberg Barclays MSCI US Corp SRI Select Index, while EUSB tracks Bloomberg MSCI US Universal Choice ESG Screened Index. They also come from different issuers: Vanguard and iShares.

Which has better risk-adjusted returns?

EUSB currently has the higher Sharpe Ratio (1.45 vs 1.28), 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.