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.
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.
📋 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?
- You already use Vanguard and prefer staying within their fund family
- 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
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