VCSH vs. BND
Compare and contrast key facts about Vanguard Short-Term Corporate Bond ETF (VCSH) and Vanguard Total Bond Market ETF (BND).
VCSH and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VCSH is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. 1-5 Year Corporate Index. It was launched on Nov 19, 2009. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. Both VCSH and BND are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VCSH or BND.
Key characteristics
| VCSH | BND | |
|---|---|---|
| YTD Return | 0.71% | -1.43% |
| 1Y Return | 4.45% | 0.85% |
| 3Y Return (Ann) | 0.12% | -3.00% |
| 5Y Return (Ann) | 1.81% | 0.05% |
| 10Y Return (Ann) | 1.96% | 1.24% |
| Sharpe Ratio | 1.53 | 0.09 |
| Daily Std Dev | 2.90% | 6.54% |
| Max Drawdown | -12.86% | -18.84% |
| Current Drawdown | -0.14% | -11.87% |
Correlation
The correlation between VCSH and BND is 0.70, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VCSH vs. BND - Performance Comparison
In the year-to-date period, VCSH achieves a 0.71% return, which is significantly higher than BND's -1.43% return. Over the past 10 years, VCSH has outperformed BND with an annualized return of 1.96%, while BND has yielded a comparatively lower 1.24% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VCSH vs. BND - Expense Ratio Comparison
VCSH has a 0.04% expense ratio, which is higher than BND's 0.03% 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%.
Risk-Adjusted Performance
VCSH vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Corporate Bond ETF (VCSH) and Vanguard Total Bond Market ETF (BND). 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.
Dividends
VCSH vs. BND - Dividend Comparison
VCSH's dividend yield for the trailing twelve months is around 3.44%, more than BND's 3.36% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VCSH Vanguard Short-Term Corporate Bond ETF | 3.44% | 3.09% | 2.01% | 1.81% | 2.27% | 2.87% | 2.65% | 2.26% | 2.10% | 2.08% | 2.01% | 2.05% |
BND Vanguard Total Bond Market ETF | 3.36% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
VCSH vs. BND - Drawdown Comparison
The maximum VCSH drawdown since its inception was -12.86%, smaller than the maximum BND drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for VCSH and BND. For additional features, visit the drawdowns tool.
Volatility
VCSH vs. BND - Volatility Comparison
The current volatility for Vanguard Short-Term Corporate Bond ETF (VCSH) is 0.61%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.30%. This indicates that VCSH experiences smaller price fluctuations and is considered to be less risky than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.