VSDB vs. SCHJ

Last updated Aug 1, 2026

VSDB (Vanguard Short Duration Bond ETF Shares) and SCHJ (Schwab 1-5 Year Corporate Bond ETF) are both Short-Term Bond funds. VSDB is actively managed, while SCHJ is passively managed. Over the past year, VSDB returned 3.82% vs 2.99% for SCHJ. Their correlation of 0.82 means they have usually moved in the same direction. VSDB charges 0.15%/yr vs 0.03%/yr for SCHJ.

Performance

VSDB vs. SCHJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short Duration Bond ETF Shares (VSDB) and Schwab 1-5 Year Corporate Bond ETF (SCHJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSDB achieves a 1.15% return, which is significantly higher than SCHJ's 0.75% return.

VSDB

• 1D: -0.02%
• 1M: -0.12%
• 6M: 0.79%
• YTD: 1.15%
• 1Y: 3.82%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 4.56%

SCHJ

• 1D: -0.06%
• 1M: -0.28%
• 6M: 0.42%
• YTD: 0.75%
• 1Y: 2.99%
• 3Y*: 5.46%
• 5Y*: 2.31%
• 10Y*: —
• ALL TIME*: 2.60%

*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)
SCHJ Schwab 1-5 Year Corporate Bond ETF	$5.98M	$7.81M	$6.46M
VSDB Vanguard Short Duration Bond ETF Shares	$3.32M	$3.59M	$9.34M

VSDB vs. SCHJ - Yearly Performance Comparison

	2026 (YTD)	2025
VSDB Vanguard Short Duration Bond ETF Shares	1.15%	4.88%
SCHJ Schwab 1-5 Year Corporate Bond ETF	0.75%	4.77%

Correlation

The correlation between VSDB and SCHJ 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 (All Time) Calculated using the full available price history since Apr 3, 2025	0.82

The correlation between VSDB and SCHJ has been stable across timeframes, ranging from 0.82 to 0.82 - a consistent structural relationship.

Return for Risk

VSDB vs. SCHJ — Risk / Return Rank

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

VSDB

VSDB Risk / Return Rank: 89
VSDB Sharpe Ratio Rank: 92
VSDB Sortino Ratio Rank: 94
VSDB Omega Ratio Rank: 93
VSDB Calmar Ratio Rank: 81
VSDB Martin Ratio Rank: 87

SCHJ

SCHJ Risk / Return Rank: 79
SCHJ Sharpe Ratio Rank: 81
SCHJ Sortino Ratio Rank: 85
SCHJ Omega Ratio Rank: 83
SCHJ Calmar Ratio Rank: 70
SCHJ Martin Ratio Rank: 74

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.

VSDB vs. SCHJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short Duration Bond ETF Shares (VSDB) and Schwab 1-5 Year Corporate Bond ETF (SCHJ). 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.

	VSDB	SCHJ	Difference
Sharpe ratio: Return per unit of total volatility	2.40	1.86	+0.54
Sortino ratio: Return per unit of downside risk	3.66	2.80	+0.86
Omega ratio: Gain probability vs. loss probability	1.47	1.35	+0.12
Calmar ratio: Return relative to maximum drawdown	2.96	2.44	+0.52
Martin ratio: Return relative to average drawdown	12.72	9.17	+3.55

VSDB vs. SCHJ - Sharpe Ratio Comparison

The current VSDB Sharpe Ratio is 2.40, which is comparable to the SCHJ Sharpe Ratio of 1.86. The chart below compares the historical Sharpe Ratios of VSDB and SCHJ, 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

VSDB vs. SCHJ - Drawdown Comparison

The maximum VSDB drawdown since its inception was -1.42%, smaller than the maximum SCHJ drawdown of -13.62%. Use the drawdown chart below to compare losses from any high point for VSDB and SCHJ.

Drawdown Indicators

	VSDB	SCHJ	Difference
Max Drawdown Largest peak-to-trough decline	-1.42%	-13.62%	+12.20%
Max Drawdown (1Y) Largest decline over 1 year	-1.42%	-1.47%	+0.05%
Max Drawdown (3Y) Largest decline over 3 years	—	-1.47%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-9.43%	—
Current Drawdown Current decline from peak	-0.20%	-0.33%	+0.13%
Average Drawdown Average peak-to-trough decline	-0.19%	-1.85%	+1.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.33%	0.39%	-0.06%

Volatility

VSDB vs. SCHJ - Volatility Comparison

The current volatility for Vanguard Short Duration Bond ETF Shares (VSDB) is 0.46%, while Schwab 1-5 Year Corporate Bond ETF (SCHJ) has a volatility of 0.53%. This indicates that VSDB experiences smaller price fluctuations and is considered to be less risky than SCHJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSDB	SCHJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.46%	0.53%	-0.07%
Volatility (6M) Calculated over the trailing 6-month period	1.43%	1.53%	-0.10%
Volatility (1Y) Calculated over the trailing 1-year period	1.76%	1.93%	-0.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.87%	2.95%	-1.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.87%	4.10%	-2.23%

VSDB vs. SCHJ - Expense Ratio Comparison

VSDB has a 0.15% expense ratio, which is higher than SCHJ's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VSDB vs. SCHJ - Dividend Comparison

VSDB's dividend yield for the trailing twelve months is around 4.18%, less than SCHJ's 4.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
SCHJ Schwab 1-5 Year Corporate Bond ETF	4.09%	4.42%	4.00%	2.98%	1.64%	0.94%	2.54%	0.42%
VSDB Vanguard Short Duration Bond ETF Shares	3.82%	3.30%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VSDB and SCHJ in my portfolio?

VSDB and SCHJ 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, VSDB or SCHJ?

SCHJ has higher volatility (0.53%) compared to VSDB (0.46%). In terms of maximum drawdown, VSDB dropped -1.42% vs SCHJ's -13.62%.

Which ETF is better, VSDB or SCHJ?

On 1-year performance, VSDB leads with 3.82% vs 2.99% for SCHJ. On fees, SCHJ is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSDB or SCHJ?

Over the 1-year period, VSDB has performed better with a 3.82% return vs 2.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSDB or SCHJ?

SCHJ is cheaper with a 0.03% expense ratio, compared with 0.15% for VSDB.

Which ETF pays a higher dividend yield, VSDB or SCHJ?

SCHJ has the higher dividend yield at 4.09%, compared with 3.82% for VSDB.

What is the main difference between VSDB and SCHJ?

They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.15% for VSDB and 0.03% for SCHJ.

Which has better risk-adjusted returns?

VSDB currently has the higher Sharpe Ratio (2.40 vs 1.86), 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.