VCSH vs. ^FVX

Last updated Jun 4, 2026

VCSH (Vanguard Short-Term Corporate Bond ETF) is Corporate Bonds fund tracking the Barclays Capital U.S. 1-5 Year Corporate Index, while ^FVX (Treasury Yield 5 Years) is an index. Over the past 10 years, VCSH returned 2.70%/yr vs 12.99%/yr for ^FVX. At a correlation of -0.63, they often move in opposite directions.

Performance

VCSH vs. ^FVX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Corporate Bond ETF (VCSH) and Treasury Yield 5 Years (^FVX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VCSH achieves a 0.64% return, which is significantly lower than ^FVX's 12.22% return. Over the past 10 years, VCSH has underperformed ^FVX with an annualized return of 2.70%, while ^FVX has yielded a comparatively higher 12.99% annualized return.

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%

^FVX

• 1D: -0.22%
• 1M: 2.05%
• YTD: 12.22%
• 6M: 15.26%
• 1Y: 3.70%
• 3Y*: 2.83%
• 5Y*: 37.66%
• 10Y*: 12.99%

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

VCSH vs. ^FVX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
^FVX Treasury Yield 5 Years	12.22%	-15.02%	14.06%	-4.00%	216.71%	249.86%	-78.68%	-32.55%	13.78%	14.06%

Correlation

The correlation between VCSH and ^FVX is -0.84, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.84
Correlation (3Y) Calculated over the trailing 3-year period	-0.88
Correlation (5Y) Calculated over the trailing 5-year period	-0.83
Correlation (10Y) Calculated over the trailing 10-year period	-0.71
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009	-0.63

Over the past year, the inverse relationship between VCSH and ^FVX has strengthened: their correlation has moved from -0.63 to -0.84, meaning they now move in opposite directions more often than their long-term average.

Return for Risk

VCSH vs. ^FVX — Risk / Return Rank

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

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

^FVX

^FVX Risk / Return Rank: 19
^FVX Sharpe Ratio Rank: 19
^FVX Sortino Ratio Rank: 18
^FVX Omega Ratio Rank: 18
^FVX Calmar Ratio Rank: 20
^FVX Martin Ratio Rank: 18

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.

VCSH vs. ^FVX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Corporate Bond ETF (VCSH) and Treasury Yield 5 Years (^FVX). 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.

	VCSH	^FVX	Difference
Sharpe ratio: Return per unit of total volatility	2.45	0.21	+2.23
Sortino ratio: Return per unit of downside risk	3.85	0.43	+3.41
Omega ratio: Gain probability vs. loss probability	1.48	1.05	+0.43
Calmar ratio: Return relative to maximum drawdown	3.29	0.27	+3.02
Martin ratio: Return relative to average drawdown	13.55	0.47	+13.09
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VCSH vs. ^FVX - Sharpe Ratio Comparison

The current VCSH Sharpe Ratio is 2.45, which is higher than the ^FVX Sharpe Ratio of 0.21. The chart below compares the historical Sharpe Ratios of VCSH and ^FVX, 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

	VCSH	^FVX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.45	0.21	+2.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.81	0.98	-0.17
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	0.22	+0.58
Sharpe Ratio (All Time) Calculated using the full available price history	1.02	-0.01	+1.03

Drawdowns

VCSH vs. ^FVX - Drawdown Comparison

The maximum VCSH drawdown since its inception was -12.86%, smaller than the maximum ^FVX drawdown of -97.53%. Use the drawdown chart below to compare losses from any high point for VCSH and ^FVX.

Drawdown Indicators

	VCSH	^FVX	Difference
Max Drawdown Largest peak-to-trough decline	-12.86%	-97.53%	+84.67%
Max Drawdown (1Y) Largest decline over 1 year	-1.40%	-14.88%	+13.48%
Max Drawdown (3Y) Largest decline over 3 years	-1.40%	-31.36%	+29.96%
Max Drawdown (5Y) Largest decline over 5 years	-9.48%	-31.36%	+21.88%
Max Drawdown (10Y) Largest decline over 10 years	-12.86%	-93.69%	+80.83%
Current Drawdown Current decline from peak	-0.32%	-47.10%	+46.78%
Average Drawdown Average peak-to-trough decline	-0.97%	-56.54%	+55.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.34%	8.52%	-8.18%

Volatility

VCSH vs. ^FVX - Volatility Comparison

The current volatility for Vanguard Short-Term Corporate Bond ETF (VCSH) is 0.57%, while Treasury Yield 5 Years (^FVX) has a volatility of 5.99%. This indicates that VCSH experiences smaller price fluctuations and is considered to be less risky than ^FVX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCSH	^FVX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.57%	5.99%	-5.42%
Volatility (6M) Calculated over the trailing 6-month period	1.38%	13.21%	-11.83%
Volatility (1Y) Calculated over the trailing 1-year period	1.88%	18.75%	-16.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.88%	38.75%	-35.87%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.35%	58.61%	-55.26%

Frequently Asked Questions

Can I hold both VCSH and ^FVX in my portfolio?

VCSH and ^FVX have a correlation of -0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VCSH or ^FVX?

^FVX has higher volatility (5.99%) compared to VCSH (0.57%). In terms of maximum drawdown, VCSH dropped -12.86% vs ^FVX's -97.53%.

Which has better risk-adjusted returns?

VCSH currently has the higher Sharpe Ratio (2.45 vs 0.21), 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.