VCSH vs. VBIPX

Last updated Jun 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 Barclays Capital U.S. 1-5 Year Corporate Index, while VBIPX is a Total Bond Market fund managed by Vanguard. Over the past 10 years, VCSH returned 2.70%/yr vs 1.90%/yr for VBIPX. A 0.71 correlation means they provide meaningful diversification when combined. 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 0.64% return, which is significantly higher than VBIPX's 0.32% return. Over the past 10 years, VCSH has outperformed VBIPX with an annualized return of 2.70%, while VBIPX has yielded a comparatively lower 1.90% annualized return.

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%

VBIPX

• 1D: 0.00%
• 1M: 0.15%
• YTD: 0.32%
• 6M: 0.56%
• 1Y: 3.77%
• 3Y*: 4.36%
• 5Y*: 1.55%
• 10Y*: 1.90%

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

VCSH vs. VBIPX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VCSH Vanguard Short-Term Corporate Bond ETF	0.64%	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	0.32%	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 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Sep 28, 2011	0.71

The correlation between VCSH and VBIPX shifts across timeframes, from 0.71 (all time) to 0.84 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VCSH vs. VBIPX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VCSH

VCSH Risk / Return Rank: 74
VCSH Sharpe Ratio Rank: 73
VCSH Sortino Ratio Rank: 84
VCSH Omega Ratio Rank: 79
VCSH Calmar Ratio Rank: 65
VCSH Martin Ratio Rank: 71

VBIPX

VBIPX Risk / Return Rank: 39
VBIPX Sharpe Ratio Rank: 34
VBIPX Sortino Ratio Rank: 46
VBIPX Omega Ratio Rank: 39
VBIPX Calmar Ratio Rank: 42
VBIPX Martin Ratio Rank: 37

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. 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.

	VCSH	VBIPX	Difference
Sharpe ratio: Return per unit of total volatility	2.45	1.67	+0.77
Sortino ratio: Return per unit of downside risk	3.85	2.84	+1.01
Omega ratio: Gain probability vs. loss probability	1.48	1.33	+0.15
Calmar ratio: Return relative to maximum drawdown	3.29	2.45	+0.84
Martin ratio: Return relative to average drawdown	13.55	8.04	+5.51
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. VBIPX - Sharpe Ratio Comparison

The current VCSH Sharpe Ratio is 2.45, which is higher than the VBIPX Sharpe Ratio of 1.67. 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.

Sharpe Ratios by Period

	VCSH	VBIPX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.45	1.67	+0.77
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.81	0.53	+0.28
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	0.79	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	1.02	0.79	+0.23

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	-9.48%	-8.69%	-0.79%
Max Drawdown (10Y) Largest decline over 10 years	-12.86%	-8.72%	-4.14%
Current Drawdown Current decline from peak	-0.32%	-0.62%	+0.30%
Average Drawdown Average peak-to-trough decline	-0.97%	-1.19%	+0.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.34%	0.47%	-0.13%

Volatility

VCSH vs. VBIPX - Volatility Comparison

The current volatility for Vanguard Short-Term Corporate Bond ETF (VCSH) is 0.57%, while Vanguard Short-Term Bond Index Fund Institutional Plus (VBIPX) has a volatility of 0.70%. This indicates that VCSH experiences smaller price fluctuations and is considered to be less risky 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	0.57%	0.70%	-0.13%
Volatility (6M) Calculated over the trailing 6-month period	1.38%	1.61%	-0.23%
Volatility (1Y) Calculated over the trailing 1-year period	1.88%	2.26%	-0.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.88%	2.96%	-0.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.35%	2.40%	+0.95%

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 4.45%, more than VBIPX's 4.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBIPX Vanguard Short-Term Bond Index Fund Institutional Plus	4.02%	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	4.45%	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

Can I hold both VCSH and VBIPX in my portfolio?

VCSH and VBIPX have a correlation of 0.83, 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?

VBIPX has higher volatility (0.70%) compared to VCSH (0.57%). 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 (2.45 vs 1.67), 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.