VCSH vs. SLQD
VCSH (Vanguard Short-Term Corporate Bond ETF) and SLQD (iShares 0-5 Year Investment Grade Corporate Bond ETF) are both Corporate Bonds funds - VCSH tracks the Barclays Capital U.S. 1-5 Year Corporate Index while SLQD tracks the Markit iBoxx USD Liquid Investment Grade 0-5 Index. Both are passively managed. Over the past 10 years, VCSH returned 2.70%/yr vs 2.66%/yr for SLQD. A 0.77 correlation means they provide meaningful diversification when combined. VCSH charges 0.04%/yr vs 0.06%/yr for SLQD.
Performance
VCSH vs. SLQD - Performance Comparison
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Returns By Period
In the year-to-date period, VCSH achieves a 0.64% return, which is significantly lower than SLQD's 0.84% return. Both investments have delivered pretty close results over the past 10 years, with VCSH having a 2.70% annualized return and SLQD not far behind at 2.66%.
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%
SLQD
- 1D
- -0.08%
- 1M
- 0.24%
- YTD
- 0.84%
- 6M
- 1.16%
- 1Y
- 4.46%
- 3Y*
- 5.35%
- 5Y*
- 2.52%
- 10Y*
- 2.66%
VCSH vs. SLQD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCSH Vanguard Short-Term Corporate Bond ETF | 0.64% | 6.77% | 4.91% | 6.20% | -5.62% | -0.63% | 5.13% | 7.02% | 0.92% | 2.17% |
SLQD iShares 0-5 Year Investment Grade Corporate Bond ETF | 0.84% | 6.27% | 4.94% | 5.98% | -4.38% | -0.61% | 4.76% | 6.09% | 1.09% | 2.12% |
Correlation
The correlation between VCSH and SLQD is 0.95 - 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 | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.97 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.96 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.86 |
Correlation (All Time) Calculated using the full available price history since Oct 18, 2013 | 0.77 |
The correlation between VCSH and SLQD shifts across timeframes, from 0.77 (all time) to 0.97 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VCSH vs. SLQD — Risk / Return Rank
VCSH
SLQD
VCSH vs. SLQD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Corporate Bond ETF (VCSH) and iShares 0-5 Year Investment Grade Corporate Bond ETF (SLQD). 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 | SLQD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.57 | ||
| Sortino ratioReturn per unit of downside risk | -1.04 | ||
| Omega ratioGain probability vs. loss probability | 1.48 | 1.62 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | 3.29 | 4.22 | -0.93 |
| Martin ratioReturn relative to average drawdown | 13.55 | 19.08 | -5.53 |
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 | SLQD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.45 | 3.02 | -0.57 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.81 | 1.04 | -0.23 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.81 | 0.85 | -0.04 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.02 | 0.85 | +0.17 |
Drawdowns
VCSH vs. SLQD - Drawdown Comparison
The maximum VCSH drawdown since its inception was -12.86%, roughly equal to the maximum SLQD drawdown of -12.69%. Use the drawdown chart below to compare losses from any high point for VCSH and SLQD.
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Drawdown Indicators
| VCSH | SLQD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -12.86% | -12.69% | -0.17% |
Max Drawdown (1Y)Largest decline over 1 year | -1.40% | -1.06% | -0.34% |
Max Drawdown (3Y)Largest decline over 3 years | -1.40% | -1.06% | -0.34% |
Max Drawdown (5Y)Largest decline over 5 years | -9.48% | -7.63% | -1.85% |
Max Drawdown (10Y)Largest decline over 10 years | -12.86% | -12.69% | -0.17% |
Current DrawdownCurrent decline from peak | -0.32% | -0.13% | -0.19% |
Average DrawdownAverage peak-to-trough decline | -0.97% | -0.87% | -0.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.34% | 0.23% | +0.11% |
Volatility
VCSH vs. SLQD - Volatility Comparison
Vanguard Short-Term Corporate Bond ETF (VCSH) has a higher volatility of 0.57% compared to iShares 0-5 Year Investment Grade Corporate Bond ETF (SLQD) at 0.46%. This indicates that VCSH's price experiences larger fluctuations and is considered to be riskier than SLQD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCSH | SLQD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.57% | 0.46% | +0.11% |
Volatility (6M)Calculated over the trailing 6-month period | 1.38% | 1.09% | +0.29% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.88% | 1.49% | +0.39% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.88% | 2.44% | +0.44% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.35% | 3.14% | +0.21% |
VCSH vs. SLQD - Expense Ratio Comparison
VCSH has a 0.04% expense ratio, which is lower than SLQD's 0.06% 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. SLQD - Dividend Comparison
VCSH's dividend yield for the trailing twelve months is around 4.45%, more than SLQD's 4.32% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SLQD iShares 0-5 Year Investment Grade Corporate Bond ETF | 4.32% | 4.15% | 3.71% | 2.99% | 2.00% | 1.67% | 2.34% | 2.89% | 2.55% | 1.98% | 1.81% | 1.43% |
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 0.95, VCSH and SLQD 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 (0.57%) compared to SLQD (0.46%). In terms of maximum drawdown, VCSH dropped -12.86% vs SLQD's -12.69%.
On 10-year performance, VCSH leads with 2.70% vs 2.66% for SLQD. On fees, VCSH is cheaper at 0.04% per year. On volatility, SLQD has been the lower-risk option at 0.46%. 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 2.70% return vs 2.66%. 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 0.06% for SLQD.
VCSH has the higher dividend yield at 4.45%, compared with 4.32% for SLQD.
VCSH tracks Barclays Capital U.S. 1-5 Year Corporate Index, while SLQD tracks Markit iBoxx USD Liquid Investment Grade 0-5 Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VCSH and 0.06% for SLQD.
SLQD currently has the higher Sharpe Ratio (3.02 vs 2.45), 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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