VCSH vs. JEPQ

Last updated Jun 16, 2026

VCSH (Vanguard Short-Term Corporate Bond ETF) and JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) are both exchange-traded funds - VCSH is a Corporate Bonds fund tracking the Bloomberg U.S. 1-5 Year Corporate Bond Index, while JEPQ is a Nasdaq-100 fund tracking the Nasdaq-100 Index. Both are passively managed. Over the past 3 years, VCSH returned 5.64%/yr vs 20.72%/yr for JEPQ. At a 0.25 correlation, their price movements are largely independent. VCSH charges 0.04%/yr vs 0.35%/yr for JEPQ.

Performance

VCSH vs. JEPQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Corporate Bond ETF (VCSH) and JPMorgan Nasdaq Equity Premium Income ETF (JEPQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VCSH achieves a 0.86% return, which is significantly lower than JEPQ's 10.23% return.

VCSH

• 1D: 0.06%
• 1M: 0.59%
• YTD: 0.86%
• 6M: 1.20%
• 1Y: 4.67%
• 3Y*: 5.64%
• 5Y*: 2.39%
• 10Y*: 2.70%

JEPQ

• 1D: 2.21%
• 1M: 3.31%
• YTD: 10.23%
• 6M: 11.56%
• 1Y: 29.39%
• 3Y*: 20.72%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

VCSH vs. JEPQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
VCSH Vanguard Short-Term Corporate Bond ETF	0.86%	6.77%	4.91%	6.20%	-0.53%
JEPQ JPMorgan Nasdaq Equity Premium Income ETF	10.23%	15.18%	24.85%	36.28%	-11.16%

Correlation

The correlation between VCSH and JEPQ is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.26
Correlation (3Y) Calculated over the trailing 3-year period	0.19
Correlation (All Time) Calculated using the full available price history since May 4, 2022	0.25

Return for Risk

VCSH vs. JEPQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VCSH

VCSH Risk / Return Rank: 84
VCSH Sharpe Ratio Rank: 86
VCSH Sortino Ratio Rank: 92
VCSH Omega Ratio Rank: 89
VCSH Calmar Ratio Rank: 73
VCSH Martin Ratio Rank: 78

JEPQ

JEPQ Risk / Return Rank: 81
JEPQ Sharpe Ratio Rank: 81
JEPQ Sortino Ratio Rank: 77
JEPQ Omega Ratio Rank: 85
JEPQ Calmar Ratio Rank: 73
JEPQ Martin Ratio Rank: 86

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VCSH vs. JEPQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Corporate Bond ETF (VCSH) and JPMorgan Nasdaq Equity Premium Income ETF (JEPQ). 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	JEPQ	Difference
Sharpe ratio: Return per unit of total volatility	2.51	2.31	+0.19
Sortino ratio: Return per unit of downside risk	3.95	3.06	+0.89
Omega ratio: Gain probability vs. loss probability	1.50	1.46	+0.04
Calmar ratio: Return relative to maximum drawdown	3.35	3.35	0.00
Martin ratio: Return relative to average drawdown	13.64	15.94	-2.29

VCSH vs. JEPQ - Sharpe Ratio Comparison

The current VCSH Sharpe Ratio is 2.51, which is comparable to the JEPQ Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of VCSH and JEPQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VCSH vs. JEPQ - Drawdown Comparison

The maximum VCSH drawdown since its inception was -12.86%, smaller than the maximum JEPQ drawdown of -20.07%. Use the drawdown chart below to compare losses from any high point for VCSH and JEPQ.

Drawdown Indicators

	VCSH	JEPQ	Difference
Max Drawdown Largest peak-to-trough decline	-12.86%	-20.07%	+7.21%
Max Drawdown (1Y) Largest decline over 1 year	-1.40%	-8.82%	+7.42%
Max Drawdown (3Y) Largest decline over 3 years	-1.40%	-20.07%	+18.67%
Max Drawdown (5Y) Largest decline over 5 years	-9.48%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-12.86%	—	—
Current Drawdown Current decline from peak	-0.10%	0.00%	-0.10%
Average Drawdown Average peak-to-trough decline	-0.97%	-3.41%	+2.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.34%	1.85%	-1.51%

Volatility

VCSH vs. JEPQ - Volatility Comparison

The current volatility for Vanguard Short-Term Corporate Bond ETF (VCSH) is 0.65%, while JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) has a volatility of 5.42%. This indicates that VCSH experiences smaller price fluctuations and is considered to be less risky than JEPQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCSH	JEPQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.65%	5.42%	-4.77%
Volatility (6M) Calculated over the trailing 6-month period	1.42%	10.44%	-9.02%
Volatility (1Y) Calculated over the trailing 1-year period	1.87%	12.78%	-10.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.89%	16.76%	-13.87%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.35%	16.76%	-13.41%

VCSH vs. JEPQ - Expense Ratio Comparison

VCSH has a 0.04% expense ratio, which is lower than JEPQ's 0.35% expense ratio.

Dividends

VCSH vs. JEPQ - Dividend Comparison

VCSH's dividend yield for the trailing twelve months is around 4.44%, less than JEPQ's 10.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
JEPQ JPMorgan Nasdaq Equity Premium Income ETF	10.00%	10.53%	9.65%	10.03%	9.44%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VCSH Vanguard Short-Term Corporate Bond ETF	4.44%	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

Can I hold both VCSH and JEPQ in my portfolio?

VCSH and JEPQ have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VCSH or JEPQ?

JEPQ has higher volatility (5.42%) compared to VCSH (0.65%). In terms of maximum drawdown, VCSH dropped -12.86% vs JEPQ's -20.07%.

Which ETF is better, VCSH or JEPQ?

On 3-year performance, JEPQ leads with 20.72% vs 5.64% for VCSH. On fees, VCSH is cheaper at 0.04% per year. On volatility, VCSH has been the lower-risk option at 0.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VCSH or JEPQ?

Over the 3-year period, JEPQ has performed better with a 20.72% return vs 5.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VCSH or JEPQ?

VCSH is cheaper with a 0.04% expense ratio, compared with 0.35% for JEPQ.

Which ETF pays a higher dividend yield, VCSH or JEPQ?

JEPQ has the higher dividend yield at 10.00%, compared with 4.44% for VCSH.

What is the main difference between VCSH and JEPQ?

VCSH is categorized as Corporate Bonds, while JEPQ is Nasdaq-100. VCSH tracks Bloomberg U.S. 1-5 Year Corporate Bond Index, while JEPQ tracks Nasdaq-100 Index. They also come from different issuers: Vanguard and JPMorgan. Their fees differ too: 0.04% for VCSH and 0.35% for JEPQ.

Which has better risk-adjusted returns?

VCSH currently has the higher Sharpe Ratio (2.51 vs 2.31), 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.