VCSH vs. ISCB
VCSH (Vanguard Short-Term Corporate Bond ETF) and ISCB (iShares Morningstar Small-Cap ETF) are both exchange-traded funds - VCSH is a Corporate Bonds fund tracking the Bloomberg U.S. 1-5 Year Corporate Bond Index, while ISCB is a Small Cap Blend Equities fund tracking the Morningstar US Small Cap Extended Index. Both are passively managed. Over the past 10 years, VCSH returned 2.70%/yr vs 9.71%/yr for ISCB. At a 0.08 correlation, their price movements are largely independent. Both charge a 0.04% expense ratio.
Performance
VCSH vs. ISCB - Performance Comparison
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Returns By Period
In the year-to-date period, VCSH achieves a 0.80% return, which is significantly lower than ISCB's 13.51% return. Over the past 10 years, VCSH has underperformed ISCB with an annualized return of 2.70%, while ISCB has yielded a comparatively higher 9.71% annualized return.
VCSH
- 1D
- -0.03%
- 1M
- 0.53%
- YTD
- 0.80%
- 6M
- 1.22%
- 1Y
- 4.60%
- 3Y*
- 5.69%
- 5Y*
- 2.33%
- 10Y*
- 2.70%
ISCB
- 1D
- 0.86%
- 1M
- 5.38%
- YTD
- 13.51%
- 6M
- 11.70%
- 1Y
- 32.44%
- 3Y*
- 15.67%
- 5Y*
- 5.77%
- 10Y*
- 9.71%
VCSH vs. ISCB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCSH Vanguard Short-Term Corporate Bond ETF | 0.80% | 6.77% | 4.91% | 6.20% | -5.62% | -0.63% | 5.13% | 7.02% | 0.92% | 2.17% |
ISCB iShares Morningstar Small-Cap ETF | 13.51% | 12.46% | 10.90% | 19.51% | -19.04% | 17.46% | 6.29% | 29.42% | -13.92% | 12.95% |
Correlation
The correlation between VCSH and ISCB is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.40 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.31 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.28 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.15 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.08 |
Over the past year, VCSH and ISCB have become more correlated (0.40) than their long-term average of 0.08, meaning their price movements have been converging.
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Return for Risk
VCSH vs. ISCB — Risk / Return Rank
VCSH
ISCB
VCSH vs. ISCB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Corporate Bond ETF (VCSH) and iShares Morningstar Small-Cap ETF (ISCB). 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 | ISCB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.56 | ||
| Sortino ratioReturn per unit of downside risk | +1.13 | ||
| Omega ratioGain probability vs. loss probability | 1.47 | 1.31 | +0.16 |
| Calmar ratioReturn relative to maximum drawdown | 3.18 | 3.22 | -0.05 |
| Martin ratioReturn relative to average drawdown | 12.95 | 11.52 | +1.43 |
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Drawdowns
VCSH vs. ISCB - Drawdown Comparison
The maximum VCSH drawdown since its inception was -12.86%, smaller than the maximum ISCB drawdown of -61.25%. Use the drawdown chart below to compare losses from any high point for VCSH and ISCB.
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Drawdown Indicators
| VCSH | ISCB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -12.86% | -61.25% | +48.39% |
Max Drawdown (1Y)Largest decline over 1 year | -1.40% | -9.39% | +7.99% |
Max Drawdown (3Y)Largest decline over 3 years | -1.40% | -26.22% | +24.82% |
Max Drawdown (5Y)Largest decline over 5 years | -9.48% | -29.94% | +20.46% |
Max Drawdown (10Y)Largest decline over 10 years | -12.86% | -44.18% | +31.32% |
Current DrawdownCurrent decline from peak | -0.17% | 0.00% | -0.17% |
Average DrawdownAverage peak-to-trough decline | -0.97% | -9.79% | +8.82% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.34% | 2.63% | -2.29% |
Volatility
VCSH vs. ISCB - Volatility Comparison
The current volatility for Vanguard Short-Term Corporate Bond ETF (VCSH) is 0.66%, while iShares Morningstar Small-Cap ETF (ISCB) has a volatility of 5.06%. This indicates that VCSH experiences smaller price fluctuations and is considered to be less risky than ISCB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCSH | ISCB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.66% | 5.06% | -4.40% |
Volatility (6M)Calculated over the trailing 6-month period | 1.42% | 11.80% | -10.38% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.88% | 16.76% | -14.88% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.88% | 21.43% | -18.55% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.35% | 22.70% | -19.35% |
VCSH vs. ISCB - Expense Ratio Comparison
Both VCSH and ISCB 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. ISCB - Dividend Comparison
VCSH's dividend yield for the trailing twelve months is around 4.45%, more than ISCB's 1.24% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ISCB iShares Morningstar Small-Cap ETF | 1.24% | 1.38% | 1.31% | 1.49% | 1.63% | 1.26% | 1.26% | 1.25% | 1.60% | 1.24% | 1.58% | 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
VCSH and ISCB have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ISCB has higher volatility (5.06%) compared to VCSH (0.66%). In terms of maximum drawdown, VCSH dropped -12.86% vs ISCB's -61.25%.
On 10-year performance, ISCB leads with 9.71% vs 2.70% for VCSH. Both ETFs have the same 0.04% expense ratio. On volatility, VCSH has been the lower-risk option at 0.66%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, ISCB has performed better with a 9.71% return vs 2.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCSH and ISCB have the same expense ratio: 0.04% per year.
VCSH has the higher dividend yield at 4.45%, compared with 1.24% for ISCB.
VCSH is categorized as Corporate Bonds, while ISCB is Small Cap Blend Equities. VCSH tracks Bloomberg U.S. 1-5 Year Corporate Bond Index, while ISCB tracks Morningstar US Small Cap Extended Index. They also come from different issuers: Vanguard and iShares.
VCSH currently has the higher Sharpe Ratio (2.37 vs 1.81), 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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