VCLT vs. VCSH
VCLT (Vanguard Long-Term Corporate Bond ETF) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both Corporate Bonds funds from Vanguard - VCLT tracks the Barclays U.S. 10+ Year Corporate Index while VCSH tracks the Barclays Capital U.S. 1-5 Year Corporate Index. Both are passively managed. Over the past 10 years, VCLT returned 2.31%/yr vs 2.70%/yr for VCSH. A 0.63 correlation means they provide meaningful diversification when combined. Both charge a 0.04% expense ratio.
Performance
VCLT vs. VCSH - Performance Comparison
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Returns By Period
In the year-to-date period, VCLT achieves a 0.99% return, which is significantly higher than VCSH's 0.64% return. Over the past 10 years, VCLT has underperformed VCSH with an annualized return of 2.31%, while VCSH has yielded a comparatively higher 2.70% annualized return.
VCLT
- 1D
- -0.35%
- 1M
- 1.49%
- YTD
- 0.99%
- 6M
- -0.04%
- 1Y
- 7.69%
- 3Y*
- 4.34%
- 5Y*
- -1.78%
- 10Y*
- 2.31%
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%
VCLT vs. VCSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCLT Vanguard Long-Term Corporate Bond ETF | 0.99% | 7.18% | -1.90% | 11.17% | -25.50% | -1.73% | 13.27% | 23.89% | -7.04% | 11.70% |
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 VCLT and VCSH is 0.79, 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 | 0.79 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.80 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.78 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.73 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | 0.63 |
The correlation between VCLT and VCSH shifts across timeframes, from 0.63 (all time) to 0.80 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VCLT vs. VCSH — Risk / Return Rank
VCLT
VCSH
VCLT vs. VCSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Corporate Bond ETF (VCLT) 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.
| VCLT | VCSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.47 | ||
| Sortino ratioReturn per unit of downside risk | -2.42 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.48 | -0.31 |
| Calmar ratioReturn relative to maximum drawdown | 1.47 | 3.29 | -1.82 |
| Martin ratioReturn relative to average drawdown | 3.62 | 13.55 | -9.93 |
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
| VCLT | VCSH | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.97 | 2.45 | -1.47 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.14 | 0.81 | -0.95 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.18 | 0.81 | -0.63 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.39 | 1.02 | -0.62 |
Drawdowns
VCLT vs. VCSH - Drawdown Comparison
The maximum VCLT drawdown since its inception was -34.31%, which is greater than VCSH's maximum drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for VCLT and VCSH.
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Drawdown Indicators
| VCLT | VCSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.31% | -12.86% | -21.45% |
Max Drawdown (1Y)Largest decline over 1 year | -5.25% | -1.40% | -3.85% |
Max Drawdown (3Y)Largest decline over 3 years | -13.03% | -1.40% | -11.63% |
Max Drawdown (5Y)Largest decline over 5 years | -34.31% | -9.48% | -24.83% |
Max Drawdown (10Y)Largest decline over 10 years | -34.31% | -12.86% | -21.45% |
Current DrawdownCurrent decline from peak | -14.36% | -0.32% | -14.04% |
Average DrawdownAverage peak-to-trough decline | -8.16% | -0.97% | -7.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.13% | 0.34% | +1.79% |
Volatility
VCLT vs. VCSH - Volatility Comparison
Vanguard Long-Term Corporate Bond ETF (VCLT) has a higher volatility of 2.31% compared to Vanguard Short-Term Corporate Bond ETF (VCSH) at 0.57%. This indicates that VCLT'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
| VCLT | VCSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.31% | 0.57% | +1.74% |
Volatility (6M)Calculated over the trailing 6-month period | 5.75% | 1.38% | +4.37% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.92% | 1.88% | +6.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.78% | 2.88% | +9.90% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.84% | 3.35% | +9.49% |
VCLT vs. VCSH - Expense Ratio Comparison
Both VCLT and VCSH have an expense ratio of 0.04%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VCLT vs. VCSH - Dividend Comparison
VCLT's dividend yield for the trailing twelve months is around 5.55%, more than VCSH's 4.45% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VCLT Vanguard Long-Term Corporate Bond ETF | 5.55% | 5.51% | 5.19% | 4.67% | 4.44% | 3.07% | 3.16% | 3.81% | 4.55% | 4.01% | 4.33% | 4.68% |
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
VCLT and VCSH have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCLT has higher volatility (2.31%) compared to VCSH (0.57%). In terms of maximum drawdown, VCLT dropped -34.31% vs VCSH's -12.86%.
On 10-year performance, VCSH leads with 2.70% vs 2.31% for VCLT. Both ETFs have the same 0.04% expense ratio. 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 10-year period, VCSH has performed better with a 2.70% return vs 2.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCLT and VCSH have the same expense ratio: 0.04% per year.
VCLT has the higher dividend yield at 5.55%, compared with 4.45% for VCSH.
VCLT tracks Barclays U.S. 10+ Year Corporate Index, while VCSH tracks Barclays Capital U.S. 1-5 Year Corporate Index.
VCSH currently has the higher Sharpe Ratio (2.45 vs 0.97), 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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