VCSH vs. IGSB
VCSH (Vanguard Short-Term Corporate Bond ETF) and IGSB (iShares 1-5 Year Investment Grade Corporate Bond ETF) are both Corporate Bonds funds - VCSH tracks the Bloomberg U.S. 1-5 Year Corporate Bond Index while IGSB tracks the ICE BofA 1-5 Year US Corporate Index. Both are passively managed. Over the past 10 years, VCSH returned 2.64%/yr vs 2.70%/yr for IGSB. A 0.73 correlation means they provide meaningful diversification when combined. Both charge a 0.04% expense ratio.
Performance
VCSH vs. IGSB - Performance Comparison
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Returns By Period
In the year-to-date period, VCSH achieves a 0.62% return, which is significantly lower than IGSB's 0.66% return. Both investments have delivered pretty close results over the past 10 years, with VCSH having a 2.64% annualized return and IGSB not far ahead at 2.70%.
VCSH
- 1D
- -0.10%
- 1M
- 0.25%
- YTD
- 0.62%
- 6M
- 0.82%
- 1Y
- 4.15%
- 3Y*
- 5.56%
- 5Y*
- 2.36%
- 10Y*
- 2.64%
IGSB
- 1D
- -0.13%
- 1M
- 0.21%
- YTD
- 0.66%
- 6M
- 0.83%
- 1Y
- 4.20%
- 3Y*
- 5.68%
- 5Y*
- 2.45%
- 10Y*
- 2.70%
VCSH vs. IGSB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCSH Vanguard Short-Term Corporate Bond ETF | 0.62% | 6.77% | 4.91% | 6.20% | -5.62% | -0.63% | 5.13% | 7.02% | 0.92% | 2.17% |
IGSB iShares 1-5 Year Investment Grade Corporate Bond ETF | 0.66% | 6.96% | 4.97% | 6.40% | -5.63% | -0.56% | 5.37% | 7.11% | 1.25% | 1.27% |
Correlation
The correlation between VCSH and IGSB is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.97 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.98 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.91 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.73 |
Over the past year, VCSH and IGSB have become more correlated (0.97) than their long-term average of 0.73, meaning their price movements have been converging.
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Return for Risk
VCSH vs. IGSB — Risk / Return Rank
VCSH
IGSB
VCSH vs. IGSB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Corporate Bond ETF (VCSH) and iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB). 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 | IGSB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.02 | ||
| Sortino ratioReturn per unit of downside risk | +0.03 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 1.43 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 2.98 | 2.89 | +0.08 |
| Martin ratioReturn relative to average drawdown | 12.06 | 11.59 | +0.47 |
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Drawdowns
VCSH vs. IGSB - Drawdown Comparison
The maximum VCSH drawdown since its inception was -12.86%, roughly equal to the maximum IGSB drawdown of -13.38%. Use the drawdown chart below to compare losses from any high point for VCSH and IGSB.
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Drawdown Indicators
| VCSH | IGSB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -12.86% | -13.38% | +0.52% |
Max Drawdown (1Y)Largest decline over 1 year | -1.40% | -1.46% | +0.06% |
Max Drawdown (3Y)Largest decline over 3 years | -1.40% | -1.46% | +0.06% |
Max Drawdown (5Y)Largest decline over 5 years | -9.48% | -9.46% | -0.02% |
Max Drawdown (10Y)Largest decline over 10 years | -12.86% | -13.38% | +0.52% |
Current DrawdownCurrent decline from peak | -0.34% | -0.38% | +0.04% |
Average DrawdownAverage peak-to-trough decline | -0.96% | -0.85% | -0.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.35% | 0.36% | -0.01% |
Volatility
VCSH vs. IGSB - Volatility Comparison
Vanguard Short-Term Corporate Bond ETF (VCSH) and iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) have volatilities of 0.68% and 0.68%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCSH | IGSB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.68% | 0.68% | 0.00% |
Volatility (6M)Calculated over the trailing 6-month period | 1.48% | 1.50% | -0.02% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.92% | 1.96% | -0.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.89% | 2.94% | -0.05% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.35% | 3.47% | -0.12% |
VCSH vs. IGSB - Expense Ratio Comparison
Both VCSH and IGSB 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
VCSH vs. IGSB - Dividend Comparison
VCSH's dividend yield for the trailing twelve months is around 4.45%, less than IGSB's 4.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IGSB iShares 1-5 Year Investment Grade Corporate Bond ETF | 4.58% | 4.44% | 4.02% | 3.26% | 2.07% | 1.82% | 2.36% | 3.06% | 2.46% | 1.65% | 1.45% | 1.18% |
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 0.97, VCSH and IGSB 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.
IGSB has higher volatility (0.68%) compared to VCSH (0.68%). In terms of maximum drawdown, VCSH dropped -12.86% vs IGSB's -13.38%.
On 10-year performance, IGSB leads with 2.70% vs 2.64% for VCSH. Both ETFs have the same 0.04% expense ratio. 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, IGSB has performed better with a 2.70% return vs 2.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCSH and IGSB have the same expense ratio: 0.04% per year.
IGSB has the higher dividend yield at 4.58%, compared with 4.45% for VCSH.
VCSH tracks Bloomberg U.S. 1-5 Year Corporate Bond Index, while IGSB tracks ICE BofA 1-5 Year US Corporate Index. They also come from different issuers: Vanguard and iShares.
VCSH currently has the higher Sharpe Ratio (2.17 vs 2.16), 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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