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VCSH
Vanguard Short-Term Corporate Bond ETF · ETF / Short-Term Corporate Bonds
$78.85
+0.62% this month
VERSUS
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COMPARE
BND
Vanguard Total Bond Market ETF · ETF / Total Bond Market
$73.34
+1.57% this month
Scoreboard verdict
Across expense ratio, momentum, yield, fund size, risk
VCSH
2
BND
2
Comparison scoreboard
MIXED SETUPExp. Ratio
VCSH 0.03%
BND 0.03%
1Y Return
VCSH +4.39%
BND ✓+4.73%
Div. Yield
VCSH ✓4.43%
BND 3.94%
AUM
VCSH $50.52B
BND ✓$394.43B
Beta
VCSH ✓0.13
BND 0.25
Metrics last refreshed: 6/20/2026
Quick take
VCSH vs BND Stock Comparison: AI Score, Valuation, Performance and Upside
VCSH and BND are both investment-grade bond ETFs from Vanguard but with very different duration profiles. VCSH's ~2.7 year duration provides stability in rising rate environments but lower income than BND. BND's 6-7 year duration provides higher income and flight-to-safety benefits from Treasury bonds but much more price sensitivity to rate changes. Investors uncertain about rates favor VCSH; investors using bonds as portfolio ballast in a 60/40 allocation favor BND.
VCSH vs BND — Vanguard Short-Term Corporate Bond ETF (1-5 year investment-grade corporates with ~2.7 year duration for capital preservation and moderate yield pickup over cash) versus Vanguard Total Bond Market ETF (total investment-grade bond market with 6-7 year duration including Treasury flight-to-safety component and complete bond market diversification at 0.03%).
Live analysis · updated 6/20/2026
VCSH and BND are closely matched — they split the tracked metrics evenly. BND has delivered stronger 1-year price return (+4.73% vs +4.39% for VCSH).
Normalized 1Y performance
VCSH
BND
Recent returns
VCSH
BND
Who should consider this stock?
VCSH may suit investors who:
- →want investment-grade corporate bond income with minimal interest rate risk — 2.7 year duration means significantly less pain in rising rate environments vs longer-duration alternatives
- →use bonds as capital preservation allocation for intermediate-term needs (1-5 years) rather than long-term portfolio ballast
- →are uncertain about interest rate direction and want to minimize duration risk while earning above-cash yields
- →are comfortable with no Treasury flight-to-safety benefit — VCSH holds only corporates, so doesn't provide the equity hedge of Treasury-heavy BND
BND may suit investors who:
- →want the complete US investment-grade bond market for classic 60/40 portfolio diversification including Treasury bonds that rise during equity crashes
- →hold bonds as long-term portfolio ballast accepting rate sensitivity in exchange for the complete bond market's diversification and flight-to-safety characteristics
- →prefer total market exposure at 0.03% rather than taking a specific duration bet by choosing short-term vs long-term bond ETFs
- →are comfortable with 6-7 year duration and significant price volatility in rising rate environments in exchange for higher income in normal yield curves and Treasury flight-to-safety in equity crises
Performance & AI score
| Metric | VCSH | BND |
|---|---|---|
| ETF score | 52.0 | 51.0 |
| Latest close | $78.85 | $73.34 |
| 1M return | +0.62% | +1.57% |
| 6M return | +0.98% | +0.76% |
| 1Y return | +4.39% | +4.73% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | VCSH | BND |
|---|---|---|
| 1Y ago | $10.92K (+9.2%) started 2025-06-18 | $10.9K (+9.0%) started 2025-06-18 |
| 5Y ago | $13.44K (+34.4%) started 2021-06-18 | $11.92K (+19.2%) started 2021-06-18 |
| 10Y ago | $18.08K (+80.8%) started 2016-06-20 | $16.61K (+66.1%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Fund characteristics
| Metric | VCSH | BND |
|---|---|---|
| Expense ratio | 0.03% | 0.03% |
| Total assets (AUM) | $50.52B | $394.43B |
| Dividend yield | 4.43% | 3.94% |
| Trailing P/E | N/A | N/A |
| Beta | 0.13 | 0.25 |
| 52-week change | 4.39% | 4.73% |
Risk & fund metrics
| Metric | VCSH | BND |
|---|---|---|
| 1Y return | +4.39% | +4.73% |
| 6M return | +0.98% | +0.76% |
| 1M return | +0.62% | +1.57% |
| 1Y Sharpe ratio | -0.09 | 0.06 |
| Beta | 0.13 | 0.25 |
| Dividend yield | 4.43% | 3.94% |
| 5Y CAGR | +2.39% | +0.04% |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
VCSH max drawdown1.40%
BND max drawdown2.68%
VCSH max wkly drop0.65%
BND max wkly drop1.10%
5Y risk snapshot
VCSH max drawdown9.48%
BND max drawdown17.91%
VCSH max wkly drop2.24%
BND max wkly drop3.50%
10Y risk snapshot
VCSH max drawdown12.86%
BND max drawdown18.58%
VCSH max wkly drop8.74%
BND max wkly drop8.05%
Performance metrics by period
| Period | Metric | VCSH | BND |
|---|---|---|---|
| 1Y | Growth | +4.39% | +4.73% |
| CAGR | +4.39% | +4.73% | |
| Sharpe ratio | -0.09 | 0.06 | |
| Max drawdown | 1.40% | 2.68% | |
| Max daily drop | 0.40% | 0.80% | |
| Max wkly drop | 0.65% | 1.10% | |
| 5Y | Growth | +12.52% | +0.19% |
| CAGR | +2.39% | +0.04% | |
| Sharpe ratio | -0.72 | -0.71 | |
| Max drawdown | 9.48% | 17.91% | |
| Max daily drop | 0.92% | 1.62% | |
| Max wkly drop | 2.24% | 3.50% | |
| 10Y | Growth | +30.23% | +17.99% |
| CAGR | +2.68% | +1.67% | |
| Sharpe ratio | -0.54 | -0.49 | |
| Max drawdown | 12.86% | 18.58% | |
| Max daily drop | 3.43% | 5.44% | |
| Max wkly drop | 8.74% | 8.05% |
Fund overview
| Category | VCSH | BND |
|---|---|---|
| Fund name | Vanguard Short-Term Corporate Bond Index Fund ETF Shares | Vanguard Total Bond Market Index Fund |
| Type | ETF | ETF |
| Expense ratio | 0.03% | 0.03% |
| Total assets (AUM) | $50.52B | $394.43B |
| Dividend yield | 4.43% | 3.94% |
VCSH strengths
- →Low ~2.7 year duration limits rate risk: VCSH's short maturities provide significantly less interest rate sensitivity than BND — appropriate for investors uncertain about rate direction
- →Investment-grade corporate yield premium over Treasuries: VCSH earns a credit spread above Treasury bonds of the same maturity — providing meaningfully higher yield than short-term Treasury ETFs
- →Capital preservation focus: short-duration bonds mature quickly, limiting the time that market price can fall below face value — investors holding to maturity recover par value in a predictable timeframe
BND strengths
- →Flight-to-safety Treasury bond component: BND's 65% US government/agency allocation rises in value during stock market crashes — providing the core 60/40 portfolio diversification benefit
- →Total bond market diversification: BND spans Treasuries, agencies, and corporates — complete investment-grade bond market in one fund at 0.03%
- →Higher income in normal yield curve environments: BND's longer duration typically provides higher yield than VCSH when the yield curve is normal (upward sloping)
Risks to watch — VCSH
- →Lower yield than BND in normal yield curve environments: VCSH earns less than BND when yield curves are normal (upward sloping) — accepting lower income for reduced rate sensitivity
- →Credit risk in recessions: corporate bonds can widen dramatically in credit crises — VCSH's investment-grade rating doesn't eliminate corporate spread risk entirely in severe downturns
- →No Treasury flight-to-safety benefit: VCSH holds only corporate bonds — in severe market stress, corporate bond spreads widen even as Treasury bonds rally, so VCSH doesn't provide the same flight-to-safety as BND's Treasury-heavy portfolio
Risks to watch — BND
- →Much higher duration (~6-7 years) amplifies rate losses: BND lost 13%+ in 2022 — investors in short-duration VCSH experienced much smaller losses in the same rate spike
- →MBS prepayment risk: BND's mortgage-backed securities return principal when homeowners refinance — disrupting expected income when rates fall and borrowers refinance aggressively
- →Less appropriate for short-term cash management: BND's duration makes it unsuitable for funds needed within 2-3 years — VCSH's short duration is more appropriate for medium-term savings
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