VCSH vs. TFLR

Last updated Jun 16, 2026

VCSH (Vanguard Short-Term Corporate Bond ETF) and TFLR (T. Rowe Price Floating Rate ETF) are both exchange-traded funds - VCSH is a Corporate Bonds fund tracking the Bloomberg U.S. 1-5 Year Corporate Bond Index, while TFLR is a Bank Loan fund actively managed by T. Rowe Price. VCSH is passively managed, while TFLR is actively managed. Over the past 3 years, VCSH returned 5.64%/yr vs 7.80%/yr for TFLR. At a 0.16 correlation, their price movements are largely independent. VCSH charges 0.04%/yr vs 0.60%/yr for TFLR.

Performance

VCSH vs. TFLR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Corporate Bond ETF (VCSH) and T. Rowe Price Floating Rate ETF (TFLR). 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 TFLR's 1.31% 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%

TFLR

• 1D: 0.14%
• 1M: 0.18%
• YTD: 1.31%
• 6M: 1.62%
• 1Y: 5.46%
• 3Y*: 7.80%
• 5Y*: —
• 10Y*: —

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

VCSH vs. TFLR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
VCSH Vanguard Short-Term Corporate Bond ETF	0.86%	6.77%	4.91%	6.20%	0.42%
TFLR T. Rowe Price Floating Rate ETF	1.31%	6.57%	8.77%	12.05%	-0.44%

Correlation

The correlation between VCSH and TFLR is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.17
Correlation (3Y) Calculated over the trailing 3-year period	0.15
Correlation (All Time) Calculated using the full available price history since Nov 17, 2022	0.16

Return for Risk

VCSH vs. TFLR — 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

TFLR

TFLR Risk / Return Rank: 80
TFLR Sharpe Ratio Rank: 91
TFLR Sortino Ratio Rank: 92
TFLR Omega Ratio Rank: 94
TFLR Calmar Ratio Rank: 55
TFLR Martin Ratio Rank: 68

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. TFLR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Corporate Bond ETF (VCSH) and T. Rowe Price Floating Rate ETF (TFLR). 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	TFLR	Difference
Sharpe ratio: Return per unit of total volatility	2.51	2.77	-0.26
Sortino ratio: Return per unit of downside risk	3.95	4.10	-0.15
Omega ratio: Gain probability vs. loss probability	1.50	1.64	-0.14
Calmar ratio: Return relative to maximum drawdown	3.35	2.52	+0.82
Martin ratio: Return relative to average drawdown	13.64	11.52	+2.12

VCSH vs. TFLR - Sharpe Ratio Comparison

The current VCSH Sharpe Ratio is 2.51, which is comparable to the TFLR Sharpe Ratio of 2.77. The chart below compares the historical Sharpe Ratios of VCSH and TFLR, 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. TFLR - Drawdown Comparison

The maximum VCSH drawdown since its inception was -12.86%, which is greater than TFLR's maximum drawdown of -4.01%. Use the drawdown chart below to compare losses from any high point for VCSH and TFLR.

Drawdown Indicators

	VCSH	TFLR	Difference
Max Drawdown Largest peak-to-trough decline	-12.86%	-4.01%	-8.85%
Max Drawdown (1Y) Largest decline over 1 year	-1.40%	-2.18%	+0.78%
Max Drawdown (3Y) Largest decline over 3 years	-1.40%	-4.01%	+2.61%
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%	-0.16%	+0.06%
Average Drawdown Average peak-to-trough decline	-0.97%	-0.22%	-0.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.34%	0.48%	-0.14%

Volatility

VCSH vs. TFLR - Volatility Comparison

Vanguard Short-Term Corporate Bond ETF (VCSH) has a higher volatility of 0.65% compared to T. Rowe Price Floating Rate ETF (TFLR) at 0.44%. This indicates that VCSH's price experiences larger fluctuations and is considered to be riskier than TFLR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCSH	TFLR	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.65%	0.44%	+0.21%
Volatility (6M) Calculated over the trailing 6-month period	1.42%	1.74%	-0.32%
Volatility (1Y) Calculated over the trailing 1-year period	1.87%	1.99%	-0.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.89%	3.66%	-0.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.35%	3.66%	-0.31%

VCSH vs. TFLR - Expense Ratio Comparison

VCSH has a 0.04% expense ratio, which is lower than TFLR's 0.60% expense ratio.

Dividends

VCSH vs. TFLR - Dividend Comparison

VCSH's dividend yield for the trailing twelve months is around 4.44%, less than TFLR's 6.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TFLR T. Rowe Price Floating Rate ETF	6.77%	6.93%	8.18%	7.76%	0.58%	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 TFLR in my portfolio?

VCSH and TFLR have a correlation of 0.17, 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 TFLR?

VCSH has higher volatility (0.65%) compared to TFLR (0.44%). In terms of maximum drawdown, VCSH dropped -12.86% vs TFLR's -4.01%.

Which ETF is better, VCSH or TFLR?

On 3-year performance, TFLR leads with 7.80% vs 5.64% for VCSH. On fees, VCSH is cheaper at 0.04% per year. On volatility, TFLR has been the lower-risk option at 0.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VCSH or TFLR?

Over the 3-year period, TFLR has performed better with a 7.80% 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 TFLR?

VCSH is cheaper with a 0.04% expense ratio, compared with 0.60% for TFLR.

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

TFLR has the higher dividend yield at 6.77%, compared with 4.44% for VCSH.

What is the main difference between VCSH and TFLR?

VCSH is categorized as Corporate Bonds, while TFLR is Bank Loan. They also come from different issuers: Vanguard and T. Rowe Price. Their fees differ too: 0.04% for VCSH and 0.60% for TFLR.

Which has better risk-adjusted returns?

TFLR currently has the higher Sharpe Ratio (2.77 vs 2.51), 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.