VSTBX vs. VCSH

Last updated Jun 23, 2026

VSTBX (Vanguard Short-Term Corporate Bond Index Fund Institutional Shares) and VCSH (Vanguard Short-Term Corporate Bond ETF) are both Corporate Bonds funds from Vanguard. Over the past 10 years, VSTBX returned 2.99%/yr vs 2.64%/yr for VCSH. A 0.78 correlation means they provide meaningful diversification when combined. VSTBX charges 0.05%/yr vs 0.04%/yr for VCSH.

Performance

VSTBX vs. VCSH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Corporate Bond Index Fund Institutional Shares (VSTBX) 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, VSTBX achieves a 0.73% return, which is significantly higher than VCSH's 0.62% return. Over the past 10 years, VSTBX has outperformed VCSH with an annualized return of 2.99%, while VCSH has yielded a comparatively lower 2.64% annualized return.

VSTBX

• 1D: 0.15%
• 1M: 0.34%
• YTD: 0.73%
• 6M: 0.88%
• 1Y: 4.27%
• 3Y*: 5.73%
• 5Y*: 2.45%
• 10Y*: 2.99%

VCSH

• 1D: -0.10%
• 1M: 0.25%
• YTD: 0.62%
• 6M: 0.82%
• 1Y: 4.15%
• 3Y*: 5.56%
• 5Y*: 2.36%
• 10Y*: 2.64%

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

VSTBX vs. VCSH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSTBX Vanguard Short-Term Corporate Bond Index Fund Institutional Shares	0.73%	6.75%	5.37%	6.17%	-5.73%	-0.41%	5.07%	9.68%	0.92%	2.48%
VCSH Vanguard Short-Term Corporate Bond ETF	0.62%	6.77%	4.91%	6.20%	-5.62%	-0.63%	5.13%	7.02%	0.92%	2.17%

Correlation

The correlation between VSTBX and VCSH is 0.95, 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	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009	0.78

The correlation between VSTBX and VCSH shifts across timeframes, from 0.78 (all time) to 0.95 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

VSTBX vs. VCSH — Risk / Return Rank

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

VSTBX

VSTBX Risk / Return Rank: 81
VSTBX Sharpe Ratio Rank: 82
VSTBX Sortino Ratio Rank: 86
VSTBX Omega Ratio Rank: 82
VSTBX Calmar Ratio Rank: 78
VSTBX Martin Ratio Rank: 74

VCSH

VCSH Risk / Return Rank: 71
VCSH Sharpe Ratio Rank: 70
VCSH Sortino Ratio Rank: 79
VCSH Omega Ratio Rank: 75
VCSH Calmar Ratio Rank: 62
VCSH Martin Ratio Rank: 67

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.

VSTBX vs. VCSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Corporate Bond Index Fund Institutional Shares (VSTBX) 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.

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.

	VSTBX	VCSH	Difference
Sharpe ratio: Return per unit of total volatility	2.48	2.17	+0.30
Sortino ratio: Return per unit of downside risk	3.79	3.35	+0.44
Omega ratio: Gain probability vs. loss probability	1.49	1.42	+0.07
Calmar ratio: Return relative to maximum drawdown	3.35	2.98	+0.38
Martin ratio: Return relative to average drawdown	13.18	12.06	+1.12

VSTBX vs. VCSH - Sharpe Ratio Comparison

The current VSTBX Sharpe Ratio is 2.48, which is comparable to the VCSH Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of VSTBX 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.

Drawdowns

VSTBX vs. VCSH - Drawdown Comparison

The maximum VSTBX drawdown since its inception was -9.34%, smaller than the maximum VCSH drawdown of -12.86%. Use the drawdown chart below to compare losses from any high point for VSTBX and VCSH.

Drawdown Indicators

	VSTBX	VCSH	Difference
Max Drawdown Largest peak-to-trough decline	-9.34%	-12.86%	+3.52%
Max Drawdown (1Y) Largest decline over 1 year	-1.31%	-1.40%	+0.09%
Max Drawdown (3Y) Largest decline over 3 years	-1.31%	-1.40%	+0.09%
Max Drawdown (5Y) Largest decline over 5 years	-9.34%	-9.48%	+0.14%
Max Drawdown (10Y) Largest decline over 10 years	-9.34%	-12.86%	+3.52%
Current Drawdown Current decline from peak	-0.24%	-0.34%	+0.10%
Average Drawdown Average peak-to-trough decline	-0.95%	-0.96%	+0.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.33%	0.35%	-0.02%

Volatility

VSTBX vs. VCSH - Volatility Comparison

Vanguard Short-Term Corporate Bond Index Fund Institutional Shares (VSTBX) and Vanguard Short-Term Corporate Bond ETF (VCSH) have volatilities of 0.66% and 0.68%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSTBX	VCSH	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.66%	0.68%	-0.02%
Volatility (6M) Calculated over the trailing 6-month period	1.34%	1.48%	-0.14%
Volatility (1Y) Calculated over the trailing 1-year period	1.78%	1.92%	-0.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.72%	2.89%	-0.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.38%	3.35%	-0.97%

VSTBX vs. VCSH - Expense Ratio Comparison

VSTBX has a 0.05% expense ratio, which is higher than VCSH's 0.04% 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

VSTBX vs. VCSH - Dividend Comparison

VSTBX's dividend yield for the trailing twelve months is around 4.44%, which matches VCSH's 4.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VSTBX Vanguard Short-Term Corporate Bond Index Fund Institutional Shares	4.44%	4.34%	4.29%	3.09%	2.00%	1.80%	2.27%	5.40%	2.67%	2.27%	1.96%	2.25%

Frequently Asked Questions

Can I hold both VSTBX and VCSH in my portfolio?

With a correlation of 0.95, VSTBX and VCSH move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VSTBX or VCSH?

VCSH has higher volatility (0.68%) compared to VSTBX (0.66%). In terms of maximum drawdown, VSTBX dropped -9.34% vs VCSH's -12.86%.

Which has better risk-adjusted returns?

VSTBX currently has the higher Sharpe Ratio (2.48 vs 2.17), 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.