VEA vs. ICSH

Last updated Jun 9, 2026

VEA (Vanguard FTSE Developed Markets ETF) and ICSH (iShares Ultra Short Duration Bond Active ETF) are both exchange-traded funds - VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index, while ICSH is a Ultrashort Bond fund actively managed by iShares. VEA is passively managed, while ICSH is actively managed. Over the past 10 years, VEA returned 10.14%/yr vs 2.77%/yr for ICSH. At a 0.10 correlation, their price movements are largely independent. VEA charges 0.03%/yr vs 0.08%/yr for ICSH.

Performance

VEA vs. ICSH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Developed Markets ETF (VEA) and iShares Ultra Short Duration Bond Active ETF (ICSH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEA achieves a 12.02% return, which is significantly higher than ICSH's 1.43% return. Over the past 10 years, VEA has outperformed ICSH with an annualized return of 10.14%, while ICSH has yielded a comparatively lower 2.77% annualized return.

VEA

• 1D: 1.00%
• 1M: -1.37%
• YTD: 12.02%
• 6M: 14.95%
• 1Y: 28.06%
• 3Y*: 18.65%
• 5Y*: 9.09%
• 10Y*: 10.14%

ICSH

• 1D: 0.02%
• 1M: 0.18%
• YTD: 1.43%
• 6M: 1.75%
• 1Y: 4.30%
• 3Y*: 5.15%
• 5Y*: 3.67%
• 10Y*: 2.77%

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

VEA vs. ICSH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEA Vanguard FTSE Developed Markets ETF	12.02%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%
ICSH iShares Ultra Short Duration Bond Active ETF	1.43%	4.96%	5.52%	5.58%	0.97%	0.16%	1.61%	3.17%	2.25%	1.63%

Correlation

The correlation between VEA and ICSH is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.19
Correlation (10Y) Calculated over the trailing 10-year period	0.10
Correlation (All Time) Calculated using the full available price history since Dec 13, 2013	0.10

Over the past year, VEA and ICSH have become more correlated (0.30) than their long-term average of 0.10, meaning their price movements have been converging.

VEA vs. ICSH - Sectors Allocation Comparison

Sectors	VEA	ICSH
Financial Services	23.3%	-
Industrials	19.2%	-
Technology	13.8%	-
Healthcare	8.2%	-
Basic Materials	7.5%	-
Consumer Cyclical	7.5%	-
Consumer Defensive	5.6%	-
Energy	5.4%	-
Communication Services	3.4%	-
Utilities	3.3%	100.0%
Real Estate	2.7%	-

Return for Risk

VEA vs. ICSH — Risk / Return Rank

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

VEA

VEA Risk / Return Rank: 56
VEA Sharpe Ratio Rank: 57
VEA Sortino Ratio Rank: 55
VEA Omega Ratio Rank: 57
VEA Calmar Ratio Rank: 54
VEA Martin Ratio Rank: 58

ICSH

ICSH Risk / Return Rank: 99
ICSH Sharpe Ratio Rank: 100
ICSH Sortino Ratio Rank: 100
ICSH Omega Ratio Rank: 99
ICSH Calmar Ratio Rank: 99
ICSH Martin Ratio Rank: 99

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.

VEA vs. ICSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) and iShares Ultra Short Duration Bond Active ETF (ICSH). 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.

	VEA	ICSH	Difference
Sharpe ratio: Return per unit of total volatility	1.75	11.01	-9.26
Sortino ratio: Return per unit of downside risk	2.39	27.36	-24.97
Omega ratio: Gain probability vs. loss probability	1.32	6.56	-5.24
Calmar ratio: Return relative to maximum drawdown	2.42	43.67	-41.24
Martin ratio: Return relative to average drawdown	9.39	288.81	-279.42
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEA vs. ICSH - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 1.75, which is lower than the ICSH Sharpe Ratio of 11.01. The chart below compares the historical Sharpe Ratios of VEA and ICSH, 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

	VEA	ICSH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.75	11.01	-9.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.55	7.62	-7.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.59	2.63	-2.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	1.93	-1.69

Drawdowns

VEA vs. ICSH - Drawdown Comparison

The maximum VEA drawdown since its inception was -60.68%, which is greater than ICSH's maximum drawdown of -3.94%. Use the drawdown chart below to compare losses from any high point for VEA and ICSH.

Drawdown Indicators

	VEA	ICSH	Difference
Max Drawdown Largest peak-to-trough decline	-60.68%	-3.94%	-56.74%
Max Drawdown (1Y) Largest decline over 1 year	-11.63%	-0.10%	-11.53%
Max Drawdown (3Y) Largest decline over 3 years	-13.45%	-0.10%	-13.35%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-0.73%	-28.98%
Max Drawdown (10Y) Largest decline over 10 years	-35.73%	-3.94%	-31.79%
Current Drawdown Current decline from peak	-3.40%	-0.02%	-3.38%
Average Drawdown Average peak-to-trough decline	-13.29%	-0.08%	-13.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.00%	0.01%	+2.99%

Volatility

VEA vs. ICSH - Volatility Comparison

Vanguard FTSE Developed Markets ETF (VEA) has a higher volatility of 6.03% compared to iShares Ultra Short Duration Bond Active ETF (ICSH) at 0.15%. This indicates that VEA's price experiences larger fluctuations and is considered to be riskier than ICSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEA	ICSH	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.03%	0.15%	+5.88%
Volatility (6M) Calculated over the trailing 6-month period	13.91%	0.30%	+13.61%
Volatility (1Y) Calculated over the trailing 1-year period	16.15%	0.39%	+15.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.63%	0.48%	+16.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.40%	1.06%	+16.34%

VEA vs. ICSH - Expense Ratio Comparison

VEA has a 0.03% expense ratio, which is lower than ICSH's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VEA vs. ICSH - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 2.69%, less than ICSH's 4.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ICSH iShares Ultra Short Duration Bond Active ETF	4.34%	4.55%	5.24%	4.78%	1.66%	0.42%	1.21%	2.61%	2.20%	1.36%	0.88%	0.54%
VEA Vanguard FTSE Developed Markets ETF	2.69%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both VEA and ICSH in my portfolio?

VEA and ICSH have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VEA or ICSH?

VEA has higher volatility (6.03%) compared to ICSH (0.15%). In terms of maximum drawdown, VEA dropped -60.68% vs ICSH's -3.94%.

Which ETF is better, VEA or ICSH?

On 10-year performance, VEA leads with 10.14% vs 2.77% for ICSH. On fees, VEA is cheaper at 0.03% per year. On volatility, ICSH has been the lower-risk option at 0.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEA or ICSH?

Over the 10-year period, VEA has performed better with a 10.14% return vs 2.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEA or ICSH?

VEA is cheaper with a 0.03% expense ratio, compared with 0.08% for ICSH.

Which ETF pays a higher dividend yield, VEA or ICSH?

ICSH has the higher dividend yield at 4.34%, compared with 2.69% for VEA.

What is the main difference between VEA and ICSH?

VEA is categorized as Foreign Large Cap Equities, while ICSH is Ultrashort Bond. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VEA and 0.08% for ICSH.

Which has better risk-adjusted returns?

ICSH currently has the higher Sharpe Ratio (11.01 vs 1.75), 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.