VCSH vs. BSV
VCSH (Vanguard Short-Term Corporate Bond ETF) and BSV (Vanguard Short-Term Bond Index Fund ETF Shares) are both exchange-traded funds - VCSH is a Corporate Bonds fund tracking the Bloomberg U.S. 1-5 Year Corporate Bond Index, while BSV is a Short-Term Bond fund tracking the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. Both are passively managed. Over the past 10 years, VCSH returned 2.65%/yr vs 1.91%/yr for BSV. A 0.78 correlation means they provide meaningful diversification when combined. VCSH charges 0.04%/yr vs 0.03%/yr for BSV.
Performance
VCSH vs. BSV - Performance Comparison
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Returns By Period
In the year-to-date period, VCSH achieves a 0.72% return, which is significantly higher than BSV's 0.32% return. Over the past 10 years, VCSH has outperformed BSV with an annualized return of 2.65%, while BSV has yielded a comparatively lower 1.91% annualized return.
VCSH
- 1D
- 0.10%
- 1M
- 0.35%
- YTD
- 0.72%
- 6M
- 0.95%
- 1Y
- 4.09%
- 3Y*
- 5.59%
- 5Y*
- 2.37%
- 10Y*
- 2.65%
BSV
- 1D
- 0.10%
- 1M
- 0.21%
- YTD
- 0.32%
- 6M
- 0.51%
- 1Y
- 3.18%
- 3Y*
- 4.51%
- 5Y*
- 1.68%
- 10Y*
- 1.91%
VCSH vs. BSV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCSH Vanguard Short-Term Corporate Bond ETF | 0.72% | 6.77% | 4.91% | 6.20% | -5.62% | -0.63% | 5.13% | 7.02% | 0.92% | 2.17% |
BSV Vanguard Short-Term Bond Index Fund ETF Shares | 0.32% | 6.00% | 3.78% | 4.90% | -5.49% | -1.09% | 4.70% | 4.98% | 1.34% | 1.20% |
Correlation
The correlation between VCSH and BSV is 0.94, 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 | 0.94 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.93 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.88 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.78 |
The correlation between VCSH and BSV shifts across timeframes, from 0.78 (all time) to 0.95 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VCSH vs. BSV — Risk / Return Rank
VCSH
BSV
VCSH vs. BSV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Corporate Bond ETF (VCSH) and Vanguard Short-Term Bond Index Fund ETF Shares (BSV). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| VCSH | BSV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.39 | ||
| Sortino ratioReturn per unit of downside risk | +0.53 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 1.33 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 2.93 | 2.48 | +0.45 |
| Martin ratioReturn relative to average drawdown | 11.86 | 8.14 | +3.72 |
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Drawdowns
VCSH vs. BSV - Drawdown Comparison
The maximum VCSH drawdown since its inception was -12.86%, which is greater than BSV's maximum drawdown of -8.54%. Use the drawdown chart below to compare losses from any high point for VCSH and BSV.
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Drawdown Indicators
| VCSH | BSV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -12.86% | -8.54% | -4.32% |
Max Drawdown (1Y)Largest decline over 1 year | -1.40% | -1.29% | -0.11% |
Max Drawdown (3Y)Largest decline over 3 years | -1.40% | -1.53% | +0.13% |
Max Drawdown (5Y)Largest decline over 5 years | -9.48% | -8.54% | -0.94% |
Max Drawdown (10Y)Largest decline over 10 years | -12.86% | -8.54% | -4.32% |
Current DrawdownCurrent decline from peak | -0.24% | -0.60% | +0.36% |
Average DrawdownAverage peak-to-trough decline | -0.96% | -0.97% | +0.01% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.35% | 0.39% | -0.04% |
Volatility
VCSH vs. BSV - Volatility Comparison
Vanguard Short-Term Corporate Bond ETF (VCSH) has a higher volatility of 0.69% compared to Vanguard Short-Term Bond Index Fund ETF Shares (BSV) at 0.60%. This indicates that VCSH's price experiences larger fluctuations and is considered to be riskier than BSV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCSH | BSV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.69% | 0.60% | +0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 1.48% | 1.33% | +0.15% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.92% | 1.82% | +0.10% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.89% | 2.73% | +0.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.35% | 2.38% | +0.97% |
VCSH vs. BSV - Expense Ratio Comparison
VCSH has a 0.04% expense ratio, which is higher than BSV'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%.
Dividends
VCSH vs. BSV - Dividend Comparison
VCSH's dividend yield for the trailing twelve months is around 4.45%, more than BSV's 3.99% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BSV Vanguard Short-Term Bond Index Fund ETF Shares | 3.99% | 3.83% | 3.38% | 2.46% | 1.50% | 1.45% | 1.79% | 2.29% | 1.99% | 1.65% | 1.48% | 1.40% |
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
With a correlation of 0.94, VCSH and BSV 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.
VCSH has higher volatility (0.69%) compared to BSV (0.60%). In terms of maximum drawdown, VCSH dropped -12.86% vs BSV's -8.54%.
On 10-year performance, VCSH leads with 2.65% vs 1.91% for BSV. On fees, BSV is cheaper at 0.03% per year. Their volatility is very similar. 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 2.65% return vs 1.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BSV is cheaper with a 0.03% expense ratio, compared with 0.04% for VCSH.
VCSH has the higher dividend yield at 4.45%, compared with 3.99% for BSV.
VCSH is categorized as Corporate Bonds, while BSV is Short-Term Bond. VCSH tracks Bloomberg U.S. 1-5 Year Corporate Bond Index, while BSV tracks Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. Their fees differ too: 0.04% for VCSH and 0.03% for BSV.
VCSH currently has the higher Sharpe Ratio (2.14 vs 1.76), 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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