ETF Versus

VCIT vs VCSH

Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares vs Vanguard Short-Term Corporate Bond Index Fund ETF Shares

Last updated: 2026-04-02

VCIT

Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares (VCIT) is an exchange-traded fund that provides exposure to investment-grade U.S. corporate bonds. It charges a very low expense ratio of 0.03%. The fund offers a high dividend yield of 4.76%. Launched in 2009, the fund has a 17-year track record.

AUM: $63.3B ER: 0.03% Yield: 4.76% Since: Nov 19, 2009
VCSH

Vanguard Short-Term Corporate Bond Index Fund ETF Shares (VCSH) is an exchange-traded fund that provides exposure to us short-term corporate securities. It charges a very low expense ratio of 0.03%. The fund offers a high dividend yield of 4.43%. Launched in 2009, the fund has a 17-year track record.

AUM: $41.4B ER: 0.03% Yield: 4.43% Since: Nov 19, 2009

Quick Verdict

Both funds have delivered similar 1-year returns (1.1% vs 0.4%), tracking closely.

Key Metrics

Metric VCIT VCSH
Expense Ratio 0.03% 0.03%
Dividend Yield 4.8% 4.4%
Fund Family N/A N/A
Category US Investment Grade Corporate US Short-Term Corporate

Performance Chart

Indexed to 100 at start (5-year comparison)

75 81 87 93 99 105 2021-04 2022-06 2023-09 2024-12 2026-04
VCIT -11.1%
VCSH -4.0%

Performance Comparison

Period VCIT VCSH Difference
1 Month -1.93% -0.94% -0.99%
3 Months -1.46% -0.90% -0.56%
6 Months -1.83% -0.90% -0.93%
YTD -1.46% -0.90% -0.56%
1 Year +1.09% +0.39% +0.70%
3 Years +2.55% +3.54% -0.99%
5 Years -11.11% -4.01% -7.10%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period VCIT Fees VCSH Fees You Save
$10.000 10 years $60 $60 $0
$10.000 20 years $258 $258 $0
$10.000 30 years $835 $835 $0
$50.000 10 years $299 $299 $0
$50.000 30 years $4.176 $4.176 $0
$100.000 30 years $8.352 $8.352 $0

Risk Metrics

Based on 5 years of daily returns

Metric VCIT VCSH
Annualized Volatility 6.7% 3.0%
Max Drawdown -23.4% -11.5%
Sharpe Ratio -1.00 -1.77

Dividend Comparison

Metric VCIT VCSH
Annual Dividend (per share) $3.90 $3.49
Dividend Yield 4.73% 4.42%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose VCIT if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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