⚖️ VCSH vs VCIT Comparison · Free & No Signup

VCSH vs VCIT: Short vs Intermediate Corporate Bonds

Same Vanguard, same 0.04% fee, same investment-grade corporate credit. The only real difference is maturity, and that difference decides how much these move when rates change.

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Same Fund Family, Same Credit, Different Duration. Pick Based on Your Time Horizon

VCSH and VCIT are the short and intermediate versions of the same idea: a basket of investment-grade US corporate bonds from Vanguard at 0.04%. VCSH holds bonds maturing in 1 to 5 years, giving it a duration around 2.7 years. VCIT holds 5 to 10 year bonds, with a duration closer to 6 years. That maturity gap is the entire decision. VCIT pays a higher yield because longer bonds compensate you for tying up money longer, but it also falls harder when interest rates rise and gains more when they fall. The rule of thumb: a fund's duration is roughly how much it moves in price for a 1 percentage point change in rates, so VCIT can swing more than twice as much as VCSH. Neither is safer in the abstract. VCSH is the better fit for money you may need in a few years or for an investor who wants corporate yield without much rate risk. VCIT suits a longer horizon where you can ride out rate moves in exchange for more income. Many investors who want the full corporate market simply hold the intermediate fund or pair it with a total-bond fund rather than splitting hairs between the two.

📋 Quick Takeaways
⏱️Only the maturity differs: VCSH holds 1-5 year corporates (~2.7yr duration); VCIT holds 5-10 year (~6yr).
📊VCIT yields more but swings more than 2x as much as VCSH when rates move. Same 0.04% fee, same credit quality.
🎯Short horizon or low rate-risk tolerance: VCSH. Longer horizon, want more income, can ride rate moves: VCIT.
Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
VCSH
Vanguard Short-Term Corporate Bond Index Fund ETF Shares
Expense Ratio
0.04%
1-Year Return
+4.6%
AUM
$49.2B
Holdings
2,400
VCIT
Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares
Expense Ratio
0.04%
1-Year Return
+6.5%
AUM
$68.1B
Holdings
2,200

📋 VCSH vs VCIT — Key Facts Side by Side

Metric VCSH VCIT
Fund Name Vanguard Short-Term Corporate Bond Index Fund ETF Shares Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares
Issuer Vanguard Vanguard
Tracks Index Bloomberg US 1-5 Yr Corporate Bloomberg US 5-10 Yr Corporate
Expense Ratio 0.04% 0.04%
Cost per $10K/yr $4.00 $4.00
AUM $49.2B $68.1B
Holdings 2,400 2,200
Inception 2009 2009
1-Year Return +4.63% +6.53%
3-Year Return +5.50% +6.11%
5-Year Return +2.28% +1.21%
Dividend Yield 4.42% 4.74%
Holdings Overlap Same issuers, different maturities. VCSH holds 1-5 year corporate bonds; VCIT holds 5-10 year. The credit quality is similar; the interest-rate sensitivity is not. — see full overlap →
Avg Bid-Ask Spread 0.01% 0.01%

Expense ratio, AUM, and returns updated May 25, 2026 from ETF BFF database. Returns are annualised. Not investment advice.

📊 VCSH vs VCIT — Annualised Returns

Annualised returns (trailing, price-based). Past performance does not guarantee future results.

🎯 Should You Buy VCSH or VCIT?

Choose if...
VCSH
  • You already use Vanguard and prefer staying within their fund family
Choose if...
VCIT
  • You already use Vanguard and prefer staying within their fund family

💰 What the Fee Difference Actually Costs

Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.

Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.

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❓ VCSH vs VCIT — Frequently Asked Questions

Both hold investment-grade US corporate bonds from Vanguard at 0.04%, with similar credit quality. The difference is maturity. VCSH holds bonds maturing in 1 to 5 years, giving it a short duration around 2.7 years. VCIT holds 5 to 10 year bonds, with a duration near 6 years. Longer maturity means VCIT pays a higher yield but is more sensitive to interest-rate changes, both up and down.
VCSH carries less interest-rate risk because its bonds mature sooner, so its price moves less when rates change. In a rising-rate environment VCSH typically loses less than VCIT; in a falling-rate environment it gains less. Credit risk is similar between the two since both hold investment-grade corporates. If your main concern is price stability and you may need the money within a few years, VCSH is the steadier choice.
Yes, VCIT generally offers a higher yield than VCSH because investors are compensated for holding longer-maturity bonds. The trade-off is that VCIT's price moves more when interest rates change. Over a full rate cycle the total-return difference can be smaller than the yield gap suggests, because VCIT's larger price swings offset some of its higher income. Your time horizon and tolerance for rate-driven price moves should drive the choice more than the headline yield.
For most investors building a simple portfolio, a total-bond fund like BND covers the full investment-grade market, including government and corporate bonds across maturities, in one holding. VCSH and VCIT are more targeted tools: choose VCSH if you specifically want short-duration corporate exposure, or VCIT for intermediate. Holding a single corporate-bond fund makes sense if you want more credit exposure than a total-bond fund provides, but it adds concentration in corporate credit.

New to ETF investing? See answers to the most common ETF questions →

📄 VCSH & VCIT Fact Sheets

VCSH Fact Sheet VCIT Fact Sheet
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.