VCSH vs. VBIPX

Last updated Aug 4, 2026

VCSH (Vanguard Short-Term Corporate Bond ETF) and VBIPX (Vanguard Short-Term Bond Index Fund Institutional Plus) are both funds - VCSH is a Corporate Bonds fund tracking the Bloomberg U.S. 1-5 Year Corporate Bond Index, while VBIPX is a Total Bond Market fund managed by Vanguard. Over the past 10 years, VCSH returned 2.65%/yr vs 1.81%/yr for VBIPX. Their 0.71 correlation means they have sometimes moved together and sometimes differently. Both charge a 0.04% expense ratio.

Performance

VCSH vs. VBIPX - Performance Comparison

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

Returns By Period

In the year-to-date period, VCSH achieves a 0.92% return, which is significantly higher than VBIPX's 0.06% return. Over the past 10 years, VCSH has outperformed VBIPX with an annualized return of 2.65%, while VBIPX has yielded a comparatively lower 1.81% annualized return.

VCSH

• 1D: 0.13%
• 1M: -0.09%
• 6M: 0.60%
• YTD: 0.92%
• 1Y: 3.20%
• 3Y*: 5.42%
• 5Y*: 2.32%
• 10Y*: 2.65%
• ALL TIME*: 2.90%

VBIPX

• 1D: -0.10%
• 1M: -0.39%
• 6M: 0.01%
• YTD: 0.06%
• 1Y: 2.03%
• 3Y*: 4.34%
• 5Y*: 1.44%
• 10Y*: 1.81%
• ALL TIME*: 1.67%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VBIPX Vanguard Short-Term Bond Index Fund Institutional Plus	$0.00	$0.00	$0.00
VCSH Vanguard Short-Term Corporate Bond ETF	$313.19M	$294.57M	$337.26M

VCSH vs. VBIPX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VCSH Vanguard Short-Term Corporate Bond ETF	0.92%	6.77%	4.91%	6.20%	-5.62%	-0.63%	5.13%	7.02%	0.92%	2.17%
VBIPX Vanguard Short-Term Bond Index Fund Institutional Plus	0.06%	6.12%	3.78%	4.45%	-5.68%	-1.17%	4.73%	4.89%	1.38%	1.21%

Correlation

The correlation between VCSH and VBIPX is 0.82, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.82
Correlation (3Y) Balances recent behavior with more history.	0.83
Correlation (5Y) Shows whether the relationship held over a longer period.	0.85
Correlation (10Y) Provides a long-term view across more market conditions.	0.78
Correlation (All Time) Calculated using the full available price history since Sep 27, 2011	0.71

The correlation between VCSH and VBIPX shifts across timeframes, from 0.71 (all time) to 0.85 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VCSH vs. VBIPX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VCSH

VCSH Risk / Return Rank: 72
VCSH Sharpe Ratio Rank: 74
VCSH Sortino Ratio Rank: 76
VCSH Omega Ratio Rank: 74
VCSH Calmar Ratio Rank: 64
VCSH Martin Ratio Rank: 72

VBIPX

VBIPX Risk / Return Rank: 37
VBIPX Sharpe Ratio Rank: 35
VBIPX Sortino Ratio Rank: 43
VBIPX Omega Ratio Rank: 37
VBIPX Calmar Ratio Rank: 38
VBIPX Martin Ratio Rank: 31

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VCSH vs. VBIPX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Corporate Bond ETF (VCSH) and Vanguard Short-Term Bond Index Fund Institutional Plus (VBIPX). 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	VBIPX	Difference
Sharpe ratio: Return per unit of total volatility	1.72	1.19	+0.53
Sortino ratio: Return per unit of downside risk	2.50	1.96	+0.55
Omega ratio: Gain probability vs. loss probability	1.32	1.23	+0.09
Calmar ratio: Return relative to maximum drawdown	2.29	1.71	+0.58
Martin ratio: Return relative to average drawdown	9.01	4.84	+4.17

VCSH vs. VBIPX - Sharpe Ratio Comparison

The current VCSH Sharpe Ratio is 1.72, which is higher than the VBIPX Sharpe Ratio of 1.19. The chart below compares the historical Sharpe Ratios of VCSH and VBIPX, 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. VBIPX - Drawdown Comparison

The maximum VCSH drawdown since its inception was -12.86%, which is greater than VBIPX's maximum drawdown of -8.72%. Use the drawdown chart below to compare losses from any high point for VCSH and VBIPX.

Drawdown Indicators

	VCSH	VBIPX	Difference
Max Drawdown Largest peak-to-trough decline	-12.86%	-8.72%	-4.14%
Max Drawdown (1Y) Largest decline over 1 year	-1.40%	-1.54%	+0.14%
Max Drawdown (3Y) Largest decline over 3 years	-1.40%	-1.54%	+0.14%
Max Drawdown (5Y) Largest decline over 5 years	-9.41%	-8.52%	-0.89%
Max Drawdown (10Y) Largest decline over 10 years	-12.86%	-8.72%	-4.14%
Current Drawdown Current decline from peak	-0.17%	-0.87%	+0.70%
Average Drawdown Average peak-to-trough decline	-0.96%	-1.18%	+0.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.36%	0.54%	-0.18%

Volatility

VCSH vs. VBIPX - Volatility Comparison

Vanguard Short-Term Corporate Bond ETF (VCSH) has a higher volatility of 0.55% compared to Vanguard Short-Term Bond Index Fund Institutional Plus (VBIPX) at 0.49%. This indicates that VCSH's price experiences larger fluctuations and is considered to be riskier than VBIPX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCSH	VBIPX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.55%	0.49%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	1.57%	1.71%	-0.14%
Volatility (1Y) Calculated over the trailing 1-year period	1.87%	2.24%	-0.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.90%	2.97%	-0.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.35%	2.41%	+0.94%

VCSH vs. VBIPX - Expense Ratio Comparison

Both VCSH and VBIPX have an expense ratio of 0.04%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VCSH vs. VBIPX - Dividend Comparison

VCSH's dividend yield for the trailing twelve months is around 4.47%, more than VBIPX's 3.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBIPX Vanguard Short-Term Bond Index Fund Institutional Plus	3.72%	3.86%	3.40%	2.01%	1.40%	1.26%	1.82%	2.27%	2.04%	1.69%	1.53%	1.46%
VCSH Vanguard Short-Term Corporate Bond ETF	4.47%	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 VBIPX in my portfolio?

VCSH and VBIPX have a correlation of 0.82, 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 VBIPX?

VCSH has higher volatility (0.55%) compared to VBIPX (0.49%). In terms of maximum drawdown, VCSH dropped -12.86% vs VBIPX's -8.72%.

Which has better risk-adjusted returns?

VCSH currently has the higher Sharpe Ratio (1.72 vs 1.19), 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.