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VCSH vs. SMH
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VCSH vs. SMH

Last updated Jun 9, 2026

VCSH (Vanguard Short-Term Corporate Bond ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - VCSH is a Corporate Bonds fund tracking the Bloomberg U.S. 1-5 Year Corporate Bond Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, VCSH returned 2.66%/yr vs 36.92%/yr for SMH. At a 0.05 correlation, their price movements are largely independent. VCSH charges 0.04%/yr vs 0.35%/yr for SMH.

Performance

VCSH vs. SMH - Performance Comparison

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

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Returns By Period

In the year-to-date period, VCSH achieves a 0.44% return, which is significantly lower than SMH's 66.10% return. Over the past 10 years, VCSH has underperformed SMH with an annualized return of 2.66%, while SMH has yielded a comparatively higher 36.92% annualized return.

VCSH

1D
0.03%
1M
-0.26%
YTD
0.44%
6M
0.92%
1Y
4.56%
3Y*
5.56%
5Y*
2.26%
10Y*
2.66%

SMH

1D
5.00%
1M
5.58%
YTD
66.10%
6M
62.81%
1Y
137.42%
3Y*
60.43%
5Y*
37.89%
10Y*
36.92%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VCSH vs. SMH - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VCSH
Vanguard Short-Term Corporate Bond ETF		0.44%6.77%4.91%6.20%-5.62%-0.63%5.13%7.02%0.92%2.17%
SMH
VanEck Semiconductor ETF		66.10%49.17%39.10%73.38%-33.53%42.13%55.53%64.45%-9.05%38.48%

Correlation

The correlation between VCSH and SMH is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.18

Correlation (3Y)
Calculated over the trailing 3-year period

0.12

Correlation (5Y)
Calculated over the trailing 5-year period

0.18

Correlation (10Y)
Calculated over the trailing 10-year period

0.10

Correlation (All Time)
Calculated using the full available price history since Nov 24, 2009

0.05

The correlation between VCSH and SMH shifts across timeframes, from 0.05 (all time) to 0.18 (5 years), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Short-Term Corporate Bond ETF

VanEck Semiconductor ETF

Often compared with VCSH:
VCSH vs. VGSHVCSH vs. IGSBVCSH vs. BSVVCSH vs. BNDVCSH vs. VTIPVCSH vs. JPSTVCSH vs. VFSTX
Often compared with SMH:
SMH vs. SOXXSMH vs. QQQSMH vs. VGTSMH vs. FSELXSMH vs. SPYSMH vs. SMHXSMH vs. XLK

Return for Risk

VCSH vs. SMH — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VCSH
VCSH Risk / Return Rank: 8282
Overall Rank
VCSH Sharpe Ratio Rank: 8484
Sharpe Ratio Rank
VCSH Sortino Ratio Rank: 9090
Sortino Ratio Rank
VCSH Omega Ratio Rank: 8686
Omega Ratio Rank
VCSH Calmar Ratio Rank: 7272
Calmar Ratio Rank
VCSH Martin Ratio Rank: 7777
Martin Ratio Rank
SMH
SMH Risk / Return Rank: 9696
Overall Rank
SMH Sharpe Ratio Rank: 9797
Sharpe Ratio Rank
SMH Sortino Ratio Rank: 9393
Sortino Ratio Rank
SMH Omega Ratio Rank: 9494
Omega Ratio Rank
SMH Calmar Ratio Rank: 9797
Calmar Ratio Rank
SMH Martin Ratio Rank: 9696
Martin Ratio Rank
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. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Corporate Bond ETF (VCSH) and VanEck Semiconductor ETF (SMH). 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.

VCSHSMHDifference
Sharpe ratioReturn per unit of total volatility
2.45
4.27

-1.82

Sortino ratioReturn per unit of downside risk
3.82
4.33

-0.51

Omega ratioGain probability vs. loss probability

1.48

1.62

-0.14

Calmar ratioReturn relative to maximum drawdown

3.27

9.26

-5.99

Martin ratioReturn relative to average drawdown

13.41

34.80

-21.39

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VCSH vs. SMH - Sharpe Ratio Comparison

The current VCSH Sharpe Ratio is 2.45, which is lower than the SMH Sharpe Ratio of 4.27. The chart below compares the historical Sharpe Ratios of VCSH and SMH, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

VCSHSMHDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.45

4.27

-1.82

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.79

1.08

-0.29

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.80

1.13

-0.34

Sharpe Ratio (All Time)

Calculated using the full available price history

1.01

0.33

+0.68

Drawdowns

VCSH vs. SMH - Drawdown Comparison

The maximum VCSH drawdown since its inception was -12.86%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for VCSH and SMH.

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Drawdown Indicators

VCSHSMHDifference

Max Drawdown

Largest peak-to-trough decline

-12.86%

-84.96%

+72.10%

Max Drawdown (1Y)

Largest decline over 1 year

-1.40%

-14.93%

+13.53%

Max Drawdown (3Y)

Largest decline over 3 years

-1.40%

-35.74%

+34.34%

Max Drawdown (5Y)

Largest decline over 5 years

-9.48%

-45.30%

+35.82%

Max Drawdown (10Y)

Largest decline over 10 years

-12.86%

-45.30%

+32.44%

Current Drawdown

Current decline from peak

-0.52%

-6.23%

+5.71%

Average Drawdown

Average peak-to-trough decline

-0.97%

-41.07%

+40.10%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.34%

3.96%

-3.62%

Volatility

VCSH vs. SMH - Volatility Comparison

The current volatility for Vanguard Short-Term Corporate Bond ETF (VCSH) is 0.61%, while VanEck Semiconductor ETF (SMH) has a volatility of 15.45%. This indicates that VCSH experiences smaller price fluctuations and is considered to be less risky than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VCSHSMHDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.61%

15.45%

-14.84%

Volatility (6M)

Calculated over the trailing 6-month period

1.41%

26.71%

-25.30%

Volatility (1Y)

Calculated over the trailing 1-year period

1.87%

32.42%

-30.55%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

2.88%

35.32%

-32.44%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

3.35%

32.75%

-29.40%

VCSH vs. SMH - Expense Ratio Comparison

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

Dividends

VCSH vs. SMH - Dividend Comparison

VCSH's dividend yield for the trailing twelve months is around 4.46%, more than SMH's 0.18% yield.

PositionTTM20252024202320222021202020192018201720162015
SMH
VanEck Semiconductor ETF		0.18%0.31%0.44%0.60%1.18%0.51%0.69%1.50%1.88%1.43%0.80%2.14%
VCSH
Vanguard Short-Term Corporate Bond ETF		4.46%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 SMH have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

SMH has higher volatility (15.45%) compared to VCSH (0.61%). In terms of maximum drawdown, VCSH dropped -12.86% vs SMH's -84.96%.

On 10-year performance, SMH leads with 36.92% vs 2.66% for VCSH. On fees, VCSH is cheaper at 0.04% per year. On volatility, VCSH has been the lower-risk option at 0.61%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, SMH has performed better with a 36.92% 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 0.35% for SMH.

VCSH has the higher dividend yield at 4.46%, compared with 0.18% for SMH.

VCSH is categorized as Corporate Bonds, while SMH is Semiconductors. VCSH tracks Bloomberg U.S. 1-5 Year Corporate Bond Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: Vanguard and VanEck. Their fees differ too: 0.04% for VCSH and 0.35% for SMH.

SMH currently has the higher Sharpe Ratio (4.27 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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