Vanguard VCSH and iShares IGSB show near-identical bond performance
Vanguard VCSH and iShares IGSB deliver almost identical returns over five years, with differences limited to minor cost and yield variations.
Vanguard’s VCSH and iShares IGSB delivered nearly identical five-year returns, with $1,000 growing to $1,128 and $1,126 respectively. The two short-term corporate bond ETFs track investment-grade debt with maturities between one and five years. Both funds aim to provide steady income while minimizing interest rate risk.
Cost and yield figures are tightly aligned
Vanguard VCSH charges an expense ratio of 0.03%, slightly lower than the 0.04% fee for iShares IGSB. The iShares fund offers a dividend yield of 4.6%, compared to 4.5% for the Vanguard fund. According to GN auto markets/bonds: corporate bonds, these minor differences make the funds functionally equivalent for most investors.
Portfolio size and diversification differ slightly
IGSB holds 4,706 securities, ensuring no single bond exceeds 0.30% of total assets. VCSH tracks 3,030 holdings, with no position larger than 0.70% of the portfolio. Both funds maintain high diversification to spread credit risk across thousands of issuers.
Liquidity favors the larger fund
Vanguard VCSH manages $52.0 billion in assets, significantly more than the $23.4 billion under management for IGSB. The larger asset base typically supports better liquidity for trades. Both funds show a beta of 0.13, indicating low volatility relative to the stock market.
