VCSH vs. DFSD
VCSH (Vanguard Short-Term Corporate Bond ETF) and DFSD (Dimensional Short-Duration Fixed Income ETF) are both exchange-traded funds - VCSH is a Corporate Bonds fund tracking the Barclays Capital U.S. 1-5 Year Corporate Index, while DFSD is a Short-Term Bond fund actively managed by Dimensional. VCSH is passively managed, while DFSD is actively managed. Over the past 3 years, VCSH returned 5.52%/yr vs 5.33%/yr for DFSD. Their correlation of 0.87 suggests significant overlap in exposure. VCSH charges 0.04%/yr vs 0.16%/yr for DFSD.
Performance
VCSH vs. DFSD - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with VCSH having a 0.64% return and DFSD slightly lower at 0.62%.
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%
DFSD
- 1D
- -0.13%
- 1M
- 0.23%
- YTD
- 0.62%
- 6M
- 0.86%
- 1Y
- 4.23%
- 3Y*
- 5.33%
- 5Y*
- —
- 10Y*
- —
VCSH vs. DFSD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
VCSH Vanguard Short-Term Corporate Bond ETF | 0.64% | 6.77% | 4.91% | 6.20% | -5.62% | 0.09% |
DFSD Dimensional Short-Duration Fixed Income ETF | 0.62% | 6.59% | 4.60% | 6.09% | -5.87% | -0.02% |
Correlation
The correlation between VCSH and DFSD 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 | 0.85 |
Correlation (All Time) Calculated using the full available price history since Nov 17, 2021 | 0.87 |
The correlation between VCSH and DFSD has been stable across timeframes, ranging from 0.84 to 0.92 - a consistent structural relationship.
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Return for Risk
VCSH vs. DFSD — Risk / Return Rank
VCSH
DFSD
VCSH vs. DFSD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Corporate Bond ETF (VCSH) and Dimensional Short-Duration Fixed Income ETF (DFSD). 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 | DFSD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.21 | ||
| Sortino ratioReturn per unit of downside risk | +0.40 | ||
| Omega ratioGain probability vs. loss probability | 1.48 | 1.44 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 3.29 | 2.90 | +0.39 |
| Martin ratioReturn relative to average drawdown | 13.55 | 11.21 | +2.35 |
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
| VCSH | DFSD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.45 | 2.24 | +0.21 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.81 | — | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.81 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.02 | 0.91 | +0.10 |
Drawdowns
VCSH vs. DFSD - Drawdown Comparison
The maximum VCSH drawdown since its inception was -12.86%, which is greater than DFSD's maximum drawdown of -8.45%. Use the drawdown chart below to compare losses from any high point for VCSH and DFSD.
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Drawdown Indicators
| VCSH | DFSD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -12.86% | -8.45% | -4.41% |
Max Drawdown (1Y)Largest decline over 1 year | -1.40% | -1.47% | +0.07% |
Max Drawdown (3Y)Largest decline over 3 years | -1.40% | -1.47% | +0.07% |
Max Drawdown (5Y)Largest decline over 5 years | -9.48% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -12.86% | — | — |
Current DrawdownCurrent decline from peak | -0.32% | -0.44% | +0.12% |
Average DrawdownAverage peak-to-trough decline | -0.97% | -2.07% | +1.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.34% | 0.38% | -0.04% |
Volatility
VCSH vs. DFSD - Volatility Comparison
The current volatility for Vanguard Short-Term Corporate Bond ETF (VCSH) is 0.57%, while Dimensional Short-Duration Fixed Income ETF (DFSD) has a volatility of 0.64%. This indicates that VCSH experiences smaller price fluctuations and is considered to be less risky than DFSD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCSH | DFSD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.57% | 0.64% | -0.07% |
Volatility (6M)Calculated over the trailing 6-month period | 1.38% | 1.47% | -0.09% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.88% | 1.90% | -0.02% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.88% | 2.78% | +0.10% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.35% | 2.78% | +0.57% |
VCSH vs. DFSD - Expense Ratio Comparison
VCSH has a 0.04% expense ratio, which is lower than DFSD's 0.16% expense ratio. Despite the difference, 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. DFSD - Dividend Comparison
VCSH's dividend yield for the trailing twelve months is around 4.45%, more than DFSD's 3.98% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DFSD Dimensional Short-Duration Fixed Income ETF | 3.98% | 4.12% | 4.81% | 3.89% | 2.12% | 0.11% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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 0.92, VCSH and DFSD 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.
DFSD has higher volatility (0.64%) compared to VCSH (0.57%). In terms of maximum drawdown, VCSH dropped -12.86% vs DFSD's -8.45%.
On 3-year performance, VCSH leads with 5.52% vs 5.33% for DFSD. On fees, VCSH is cheaper at 0.04% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, VCSH has performed better with a 5.52% return vs 5.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCSH is cheaper with a 0.04% expense ratio, compared with 0.16% for DFSD.
VCSH has the higher dividend yield at 4.45%, compared with 3.98% for DFSD.
VCSH is categorized as Corporate Bonds, while DFSD is Short-Term Bond. They also come from different issuers: Vanguard and Dimensional. Their fees differ too: 0.04% for VCSH and 0.16% for DFSD.
VCSH currently has the higher Sharpe Ratio (2.45 vs 2.24), 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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