VCSH vs. USO
VCSH (Vanguard Short-Term Corporate Bond ETF) and USO (United States Oil Fund LP) are both exchange-traded funds - VCSH is a Corporate Bonds fund tracking the Bloomberg U.S. 1-5 Year Corporate Bond Index, while USO is a Oil & Gas fund tracking the Front Month Light Sweet Crude Oil. Both are passively managed. Over the past 10 years, VCSH returned 2.64%/yr vs 5.64%/yr for USO. Their -0.06 correlation means they have often moved in opposite directions in the past. VCSH charges 0.04%/yr vs 0.86%/yr for USO.
Performance
VCSH vs. USO - Performance Comparison
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Returns By Period
In the year-to-date period, VCSH achieves a 0.79% return, which is significantly lower than USO's 86.77% return. Over the past 10 years, VCSH has underperformed USO with an annualized return of 2.64%, while USO has yielded a comparatively higher 5.64% annualized return.
VCSH
- 1D
- -0.06%
- 1M
- -0.22%
- 6M
- 0.39%
- YTD
- 0.79%
- 1Y
- 3.07%
- 3Y*
- 5.46%
- 5Y*
- 2.30%
- 10Y*
- 2.64%
- ALL TIME*
- 2.89%
USO
- 1D
- 1.33%
- 1M
- 24.23%
- 6M
- 62.44%
- YTD
- 86.77%
- 1Y
- 66.76%
- 3Y*
- 20.97%
- 5Y*
- 20.59%
- 10Y*
- 5.64%
- ALL TIME*
- -6.85%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $968.42M | $871.56M | $931.57M | |
| $304.83M | $291.45M | $343.43M |
VCSH vs. USO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCSH Vanguard Short-Term Corporate Bond ETF | 0.79% | 6.77% | 4.91% | 6.20% | -5.62% | -0.63% | 5.13% | 7.02% | 0.92% | 2.17% |
USO United States Oil Fund LP | 86.77% | -8.46% | 13.35% | -4.94% | 28.97% | 64.68% | -67.79% | 32.61% | -19.57% | 2.47% |
Correlation
The correlation between VCSH and USO is -0.42, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | -0.42 |
Correlation (3Y) Balances recent behavior with more history. | -0.23 |
Correlation (5Y) Shows whether the relationship held over a longer period. | -0.12 |
Correlation (10Y) Provides a long-term view across more market conditions. | -0.09 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | -0.06 |
Over the past year, the inverse relationship between VCSH and USO has strengthened: their correlation has moved from -0.06 to -0.42, meaning they now move in opposite directions more often than their long-term average.
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Return for Risk
VCSH vs. USO — Risk / Return Rank
VCSH
USO
VCSH vs. USO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Corporate Bond ETF (VCSH) and United States Oil Fund LP (USO). 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 | USO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.55 | ||
| Sortino ratioReturn per unit of downside risk | +0.85 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.25 | +0.11 |
| Calmar ratioReturn relative to maximum drawdown | 2.61 | 1.93 | +0.68 |
| Martin ratioReturn relative to average drawdown | 10.26 | 5.60 | +4.66 |
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Drawdowns
VCSH vs. USO - Drawdown Comparison
The maximum VCSH drawdown since its inception was -12.86%, smaller than the maximum USO drawdown of -98.19%. Use the drawdown chart below to compare losses from any high point for VCSH and USO.
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Drawdown Indicators
| VCSH | USO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -12.86% | -98.19% | +85.33% |
Max Drawdown (1Y)Largest decline over 1 year | -1.40% | -32.49% | +31.09% |
Max Drawdown (3Y)Largest decline over 3 years | -1.40% | -32.49% | +31.09% |
Max Drawdown (5Y)Largest decline over 5 years | -9.48% | -36.23% | +26.75% |
Max Drawdown (10Y)Largest decline over 10 years | -12.86% | -86.75% | +73.89% |
Current DrawdownCurrent decline from peak | -0.29% | -86.26% | +85.97% |
Average DrawdownAverage peak-to-trough decline | -0.96% | -75.38% | +74.42% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.36% | 12.03% | -11.67% |
Volatility
VCSH vs. USO - Volatility Comparison
The current volatility for Vanguard Short-Term Corporate Bond ETF (VCSH) is 0.55%, while United States Oil Fund LP (USO) has a volatility of 17.73%. This indicates that VCSH experiences smaller price fluctuations and is considered to be less risky than USO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCSH | USO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.55% | 17.73% | -17.18% |
Volatility (6M)Calculated over the trailing 6-month period | 1.56% | 42.79% | -41.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.94% | 46.91% | -44.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.90% | 37.06% | -34.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.35% | 39.29% | -35.94% |
VCSH vs. USO - Expense Ratio Comparison
VCSH has a 0.04% expense ratio, which is lower than USO's 0.86% expense ratio.
Dividends
VCSH vs. USO - Dividend Comparison
VCSH's dividend yield for the trailing twelve months is around 4.46%, while USO has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
USO United States Oil Fund LP | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VCSH Vanguard Short-Term Corporate Bond ETF | 4.08% | 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 USO have a correlation of -0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
USO has higher volatility (17.73%) compared to VCSH (0.55%). In terms of maximum drawdown, VCSH dropped -12.86% vs USO's -98.19%.
On 10-year performance, USO leads with 5.64% vs 2.64% for VCSH. On fees, VCSH is cheaper at 0.04% per year. On volatility, VCSH has been the lower-risk option at 0.55%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, USO has performed better with a 5.64% return vs 2.64%. 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 0.86% for USO.
VCSH has the higher dividend yield at 4.08%, compared with 0.00% for USO.
VCSH is categorized as Corporate Bonds, while USO is Oil & Gas. VCSH tracks Bloomberg U.S. 1-5 Year Corporate Bond Index, while USO tracks Front Month Light Sweet Crude Oil. They also come from different issuers: Vanguard and USCF. Their fees differ too: 0.04% for VCSH and 0.86% for USO.
VCSH currently has the higher Sharpe Ratio (1.89 vs 1.34), 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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