LQD vs VCSH Stock Comparison: AI Score, Valuation, Performance and Upside
LQD and VCSH sit in related but distinct corners of the ETF landscape — LQD centers on the standard, most liquid broad investment-grade corporate bond fund, while VCSH focuses on low-duration, investment-grade corporate bond income. Investors choosing between them should weigh how each fund's strategy lines up with their own goals rather than assuming they're interchangeable.
Choosing between LQD and VCSH comes down to which specific exposure — the standard, most liquid broad investment-grade corporate bond fund or low-duration, investment-grade corporate bond income — better matches the role you want this holding to play in a diversified portfolio.
VCSH holds the edge across 3 of 5 key metrics in this comparison. VCSH has delivered stronger 1-year price return (+1.10% vs -2.47% for LQD).
- want the standard, most liquid broad investment-grade corporate bond fund
- prefer iShares (BlackRock)'s approach and fund lineup
- value deepest liquidity of any investment-grade corporate bond ETF
- are comfortable with credit spreads can widen in recessions, pressuring price
- want low-duration, investment-grade corporate bond income
- prefer Vanguard's approach and fund lineup
- value yield pickup over comparable-duration Treasury funds
- are comfortable with fixed-rate structure still carries some rate sensitivity, unlike floating-rate funds
| Metric | LQD | VCSH |
|---|---|---|
| ETF scorei | 24.4 | 24.5 |
| Latest closei | $103.72 | $77.53 |
| 1M returni | +1.86% | +0.66% |
| 3M returni | -2.44% | -0.97% |
| 6M returni | -3.02% | -0.32% |
| 1Y returni | -2.47% | +1.10% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | LQD | VCSH |
|---|---|---|
| 1Y ago | $10.18K (+1.8%) started 2025-11-03 | $10.54K (+5.4%) started 2025-11-03 |
| 5Y ago | $11.7K (+17.0%) started 2021-11-04 | $13.46K (+34.6%) started 2021-11-04 |
| 10Y ago | $18.51K (+85.1%) started 2016-11-04 | $17.93K (+79.3%) started 2016-11-04 |
Hypothetical — past performance does not guarantee future results.
| Metric | LQD | VCSH |
|---|---|---|
| Expense ratioi | 0.14% | 0.03% |
| Total assets (AUM)i | $28.27B | $50.87B |
| Dividend yieldi | 4.91% | 4.56% |
| Trailing P/Ei | N/A | N/A |
| Betai | 0.46 | 0.14 |
| 52-week change | -2.47% | 1.10% |
| Metric | LQD | VCSH |
|---|---|---|
| 1Y returni | -2.47% | +1.10% |
| 6M returni | -3.02% | -0.32% |
| 3M returni | -2.44% | -0.97% |
| 1M returni | +1.86% | +0.66% |
| 1Y Sharpe ratio | -1.22 | -1.61 |
| Betai | 0.46 | 0.14 |
| Dividend yieldi | 4.91% | 4.56% |
| 5Y CAGR | -1.17% | +2.29% |
Over the past year, LQD and VCSH have moved strongly in the same direction (correlation of 0.88), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | LQD | VCSH |
|---|---|---|---|
| 1Y | Growthi | -2.47% | +1.10% |
| CAGRi | -2.47% | +1.10% | |
| Volatilityi | 5.60% | 2.10% | |
| Sharpe ratioi | -1.22 | -1.61 | |
| Sortino ratioi | -1.60 | -2.01 | |
| Max drawdowni | 6.33% | 1.84% | |
| Current drawdowni | 4.60% | 1.19% | |
| Avg drawdowni | 1.88% | 0.41% | |
| Ulcer Indexi | 2.46% | 0.62% | |
| Max daily dropi | 1.23% | 0.45% | |
| Max wkly dropi | 2.55% | 0.72% | |
| 5Y | Growthi | -5.72% | +11.97% |
| CAGRi | -1.17% | +2.29% | |
| Volatilityi | 8.66% | 2.94% | |
| Sharpe ratioi | -0.61 | -0.74 | |
| Sortino ratioi | -0.84 | -1.02 | |
| Max drawdowni | 24.54% | 9.01% | |
| Current drawdowni | 6.44% | 1.19% | |
| Avg drawdowni | 10.62% | 2.08% | |
| Ulcer Indexi | 12.08% | 3.18% | |
| Max daily dropi | 2.31% | 0.92% | |
| Max wkly dropi | 4.94% | 2.24% | |
| 10Y | Growthi | +21.84% | +28.68% |
| CAGRi | +2.00% | +2.56% | |
| Volatilityi | 8.71% | 3.37% | |
| Sharpe ratioi | -0.25 | -0.57 | |
| Sortino ratioi | -0.34 | -0.76 | |
| Max drawdowni | 24.95% | 12.86% | |
| Current drawdowni | 6.95% | 1.19% | |
| Avg drawdowni | 6.55% | 1.38% | |
| Ulcer Indexi | 9.07% | 2.55% | |
| Max daily dropi | 5.00% | 3.43% | |
| Max wkly dropi | 13.25% | 8.74% |
| Category | LQD | VCSH |
|---|---|---|
| Fund name | iShares iBoxx $ Investment Grade Corporate Bond ETF | Vanguard Short-Term Corporate Bond Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratioi | 0.14% | 0.03% |
| Total assets (AUM)i | $28.27B | $50.87B |
| Dividend yieldi | 4.91% | 4.56% |
- Deepest liquidity of any investment-grade corporate bond ETF
- Broad maturity range balances yield and duration risk
- Diversified across hundreds of investment-grade issuers
- Yield pickup over comparable-duration Treasury funds
- Investment-grade credit quality limits default risk
- Low interest-rate sensitivity given the short duration
- Credit spreads can widen in recessions, pressuring price
- Interest-rate sensitivity from its intermediate-to-long duration mix
- Lower yield than high-yield or leveraged-loan alternatives
- Fixed-rate structure still carries some rate sensitivity, unlike floating-rate funds
- Corporate credit spreads can widen in economic stress
- Lower yield than longer-duration or lower-credit-quality bond funds
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