VCSH vs. VTIP
Compare and contrast key facts about Vanguard Short-Term Corporate Bond ETF (VCSH) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP).
VCSH and VTIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VCSH is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. 1-5 Year Corporate Index. It was launched on Nov 19, 2009. VTIP is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). It was launched on Oct 12, 2012. Both VCSH and VTIP are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VCSH or VTIP.
Performance
VCSH vs. VTIP - Performance Comparison
Returns By Period
The year-to-date returns for both investments are quite close, with VCSH having a 4.38% return and VTIP slightly higher at 4.42%. Both investments have delivered pretty close results over the past 10 years, with VCSH having a 2.29% annualized return and VTIP not far ahead at 2.40%.
VCSH
4.38%
-0.60%
3.49%
7.22%
1.90%
2.29%
VTIP
4.42%
-0.27%
2.91%
6.55%
3.51%
2.40%
Key characteristics
| VCSH | VTIP | |
|---|---|---|
| Sharpe Ratio | 3.03 | 3.16 |
| Sortino Ratio | 4.83 | 5.62 |
| Omega Ratio | 1.62 | 1.73 |
| Calmar Ratio | 2.17 | 5.00 |
| Martin Ratio | 17.18 | 24.86 |
| Ulcer Index | 0.44% | 0.27% |
| Daily Std Dev | 2.48% | 2.13% |
| Max Drawdown | -12.86% | -6.27% |
| Current Drawdown | -1.07% | -0.59% |
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VCSH vs. VTIP - Expense Ratio Comparison
Both VCSH and VTIP 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%.
Correlation
The correlation between VCSH and VTIP is 0.56, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Risk-Adjusted Performance
VCSH vs. VTIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Corporate Bond ETF (VCSH) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). 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.
Dividends
VCSH vs. VTIP - Dividend Comparison
VCSH's dividend yield for the trailing twelve months is around 3.82%, more than VTIP's 3.39% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VCSH Vanguard Short-Term Corporate Bond ETF | 3.82% | 3.09% | 2.01% | 1.81% | 2.27% | 2.87% | 2.65% | 2.25% | 2.10% | 2.08% | 2.01% | 2.05% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.39% | 3.36% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% | 0.00% | 0.82% | 0.05% |
Drawdowns
VCSH vs. VTIP - Drawdown Comparison
The maximum VCSH drawdown since its inception was -12.86%, which is greater than VTIP's maximum drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for VCSH and VTIP. For additional features, visit the drawdowns tool.
Volatility
VCSH vs. VTIP - Volatility Comparison
Vanguard Short-Term Corporate Bond ETF (VCSH) has a higher volatility of 0.66% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.49%. This indicates that VCSH's price experiences larger fluctuations and is considered to be riskier than VTIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.