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VCSH: Vanguard Short-Term Corporate Bond ETF returns, drawdowns and risk

Funds on bonds issued by companies (investment grade and high yield), emerging market governments and US municipalities.

Data updated October 2026

VCSH · US exchange · USDCategory: Corporate, high yield and municipal bond ETFsData from November 2009

From November 2009 to October 2026 VCSH returned 2.8% a year on average with dividends reinvested, in US dollars: $10,000 invested at the start grew to $16,008.

Its deepest fall was 12.9%, from March 2020 to March 2020, and it took about 3 months to get back to the previous high. Annual volatility was 2.9%; at the last close it was 1.0% below its high.

Against AGG (iShares Core U.S. Aggregate Bond ETF), over the 203 months both have data, the correlation of monthly returns was 0.81: they usually moved together. Beta was 0.47. In months when AGG rose, VCSH moved 61% as much on average; in months when AGG fell, 32% as much.

Key figures

Annual return (CAGR)
+2.8%
1-year return
+1.0%
5 years, a year
+2.4%
10 years, a year
+2.6%
Annual volatility
2.9%
Maximum drawdown
−12.9%
Sharpe ratio
0.51
Worst year
2022: −5.6%

Trailing returns

PeriodVCSHAGG
1 year+1.0%−1.9%
3 years, a year+5.5%+5.2%
5 years, a year+2.4%−0.3%
10 years, a year+2.6%+1.2%

To the last close of October 2026. Periods longer than a year are annualised.

Growth of $10,000: VCSH vs AGG

$10,000$12,000$14,000$16,000201020132016201920222025
VCSH — Vanguard Short-Term Corporate Bond ETFAGG — iShares Core U.S. Aggregate Bond ETF

Month-end values from December 2009, the first month both funds have data.

VCSH drawdowns

-10%-5%0%201020132016201920222025

Percentage below the previous high, weekly.

Returns by calendar year

YearVCSHAGG
2026(partial)+0.4%−1.8%
2025+6.8%+7.2%
2024+4.9%+1.3%
2023+6.2%+5.7%
2022−5.6%−13.0%
2021−0.6%−1.8%
2020+5.1%+7.5%
2019+7.0%+8.5%
2018+0.9%+0.1%
2017+2.2%+3.5%
2016+2.6%+2.4%
2015+1.3%+0.5%
2014+1.8%+6.0%
2013+1.4%−2.0%
2012+5.6%+3.8%
2011+3.0%+7.7%
2010+5.3%+6.4%
2009(partial)+0.3%—

How the figures are calculated

Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.

Sharpe ratio uses the return of short-term government bills in the same currency as the risk-free rate. The growth chart uses month-end values; drawdowns and volatility use daily closes.

Questions

What is the average annual return of VCSH?

From November 2009 to October 2026 VCSH returned 2.8% a year on average (CAGR) with dividends reinvested, in USD. Over the last 5 years: +2.4% a year. Over the last 12 months: +1.0%.

What was the worst drawdown of VCSH?

12.9%, from March 2020 to March 2020; it took about 3 months from the previous high to get back to it.

How volatile is VCSH?

Annual volatility was 2.9% over the period. Its worst month was −3.5% and 64% of months were positive. Worst calendar year: 2022 (−5.6%).

How closely does VCSH follow AGG?

Over 203 months the correlation of monthly returns was 0.81, so they usually moved together, with a beta of 0.47.

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Other Corporate, high yield and municipal bond ETFs

Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.