VGLT vs. VCSH

Last updated Jun 9, 2026

VGLT (Vanguard Long-Term Treasury ETF) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both exchange-traded funds - VGLT is a Government Bonds fund tracking the Bloomberg U.S. Long Treasury Index, while VCSH is a Corporate Bonds fund tracking the Bloomberg U.S. 1-5 Year Corporate Bond Index. Both are passively managed. Over the past 10 years, VGLT returned -1.28%/yr vs 2.66%/yr for VCSH. A 0.55 correlation means they provide meaningful diversification when combined. VGLT charges 0.03%/yr vs 0.04%/yr for VCSH.

Performance

VGLT vs. VCSH - Performance Comparison

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

Returns By Period

In the year-to-date period, VGLT achieves a -1.16% return, which is significantly lower than VCSH's 0.44% return. Over the past 10 years, VGLT has underperformed VCSH with an annualized return of -1.28%, while VCSH has yielded a comparatively higher 2.66% annualized return.

VGLT

• 1D: -0.40%
• 1M: -1.25%
• YTD: -1.16%
• 6M: -1.18%
• 1Y: 4.15%
• 3Y*: -0.94%
• 5Y*: -5.66%
• 10Y*: -1.28%

VCSH

• 1D: 0.03%
• 1M: -0.26%
• YTD: 0.44%
• 6M: 0.92%
• 1Y: 4.56%
• 3Y*: 5.56%
• 5Y*: 2.26%
• 10Y*: 2.66%

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

VGLT vs. VCSH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGLT Vanguard Long-Term Treasury ETF	-1.16%	5.35%	-6.28%	3.27%	-29.34%	-4.98%	17.57%	14.30%	-1.54%	8.64%
VCSH Vanguard Short-Term Corporate Bond ETF	0.44%	6.77%	4.91%	6.20%	-5.62%	-0.63%	5.13%	7.02%	0.92%	2.17%

Correlation

The correlation between VGLT and VCSH is 0.73, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009	0.55

The correlation between VGLT and VCSH shifts across timeframes, from 0.55 (all time) to 0.76 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

VGLT vs. VCSH — Risk / Return Rank

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

VGLT

VGLT Risk / Return Rank: 17
VGLT Sharpe Ratio Rank: 17
VGLT Sortino Ratio Rank: 17
VGLT Omega Ratio Rank: 16
VGLT Calmar Ratio Rank: 17
VGLT Martin Ratio Rank: 17

VCSH

VCSH Risk / Return Rank: 82
VCSH Sharpe Ratio Rank: 84
VCSH Sortino Ratio Rank: 90
VCSH Omega Ratio Rank: 86
VCSH Calmar Ratio Rank: 72
VCSH Martin Ratio Rank: 77

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.

VGLT vs. VCSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Treasury ETF (VGLT) and Vanguard Short-Term Corporate Bond ETF (VCSH). 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.

	VGLT	VCSH	Difference
Sharpe ratio: Return per unit of total volatility	0.48	2.45	-1.97
Sortino ratio: Return per unit of downside risk	0.75	3.82	-3.07
Omega ratio: Gain probability vs. loss probability	1.08	1.48	-0.40
Calmar ratio: Return relative to maximum drawdown	0.60	3.27	-2.68
Martin ratio: Return relative to average drawdown	1.53	13.41	-11.89
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VGLT vs. VCSH - Sharpe Ratio Comparison

The current VGLT Sharpe Ratio is 0.48, which is lower than the VCSH Sharpe Ratio of 2.45. The chart below compares the historical Sharpe Ratios of VGLT and VCSH, 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

	VGLT	VCSH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.48	2.45	-1.97
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.39	0.79	-1.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.09	0.80	-0.89
Sharpe Ratio (All Time) Calculated using the full available price history	0.18	1.01	-0.83

Drawdowns

VGLT vs. VCSH - Drawdown Comparison

The maximum VGLT drawdown since its inception was -46.18%, which is greater than VCSH's maximum drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for VGLT and VCSH.

Drawdown Indicators

	VGLT	VCSH	Difference
Max Drawdown Largest peak-to-trough decline	-46.18%	-12.86%	-33.32%
Max Drawdown (1Y) Largest decline over 1 year	-7.01%	-1.40%	-5.61%
Max Drawdown (3Y) Largest decline over 3 years	-17.68%	-1.40%	-16.28%
Max Drawdown (5Y) Largest decline over 5 years	-40.98%	-9.48%	-31.50%
Max Drawdown (10Y) Largest decline over 10 years	-46.18%	-12.86%	-33.32%
Current Drawdown Current decline from peak	-37.30%	-0.52%	-36.78%
Average Drawdown Average peak-to-trough decline	-15.08%	-0.97%	-14.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.72%	0.34%	+2.38%

Volatility

VGLT vs. VCSH - Volatility Comparison

Vanguard Long-Term Treasury ETF (VGLT) has a higher volatility of 2.50% compared to Vanguard Short-Term Corporate Bond ETF (VCSH) at 0.61%. This indicates that VGLT's price experiences larger fluctuations and is considered to be riskier than VCSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGLT	VCSH	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.50%	0.61%	+1.89%
Volatility (6M) Calculated over the trailing 6-month period	5.96%	1.41%	+4.55%
Volatility (1Y) Calculated over the trailing 1-year period	8.71%	1.87%	+6.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.57%	2.88%	+11.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.82%	3.35%	+10.47%

VGLT vs. VCSH - Expense Ratio Comparison

VGLT has a 0.03% expense ratio, which is lower than VCSH's 0.04% 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

VGLT vs. VCSH - Dividend Comparison

VGLT's dividend yield for the trailing twelve months is around 4.64%, more than VCSH's 4.46% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VCSH Vanguard Short-Term Corporate Bond ETF	4.46%	4.35%	3.96%	3.09%	2.01%	1.81%	2.27%	2.87%	2.65%	2.26%	2.10%	2.08%
VGLT Vanguard Long-Term Treasury ETF	4.64%	4.44%	4.33%	3.33%	2.84%	1.82%	2.15%	2.46%	2.71%	2.55%	2.69%	3.21%

Frequently Asked Questions

Can I hold both VGLT and VCSH in my portfolio?

VGLT and VCSH have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGLT or VCSH?

VGLT has higher volatility (2.50%) compared to VCSH (0.61%). In terms of maximum drawdown, VGLT dropped -46.18% vs VCSH's -12.86%.

Which ETF is better, VGLT or VCSH?

On 10-year performance, VCSH leads with 2.66% vs -1.28% for VGLT. On fees, VGLT is cheaper at 0.03% per year. On volatility, VCSH has been the lower-risk option at 0.61%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGLT or VCSH?

Over the 10-year period, VCSH has performed better with a 2.66% return vs -1.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGLT or VCSH?

VGLT is cheaper with a 0.03% expense ratio, compared with 0.04% for VCSH.

Which ETF pays a higher dividend yield, VGLT or VCSH?

VGLT has the higher dividend yield at 4.64%, compared with 4.46% for VCSH.

What is the main difference between VGLT and VCSH?

VGLT is categorized as Government Bonds, while VCSH is Corporate Bonds. VGLT tracks Bloomberg U.S. Long Treasury Index, while VCSH tracks Bloomberg U.S. 1-5 Year Corporate Bond Index. Their fees differ too: 0.03% for VGLT and 0.04% for VCSH.

Which has better risk-adjusted returns?

VCSH currently has the higher Sharpe Ratio (2.45 vs 0.48), 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.