Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTRobert Izquierdo, The Motley FoolSun, July 26, 2026 at 7:28 PM GMT+2 4 min readConservative fixed-income investors may prefer the Vanguard Short-Term Bond ETF (NYSEMKT:BSV) for its Treasury exposure, while the Vanguard Short-Term Corporate Bond ETF (NASDAQ:VCSH) offers a higher yield by concentrating on corporate debt.Short-term bonds often serve as a volatility buffer in a diversified portfolio, providing better returns than cash without the significant price swings associated with long-term debt. Investors comparing these two Vanguard offerings are typically deciding between the relative safety of government-backed securities and the slightly higher income potential found in corporate notes.Both funds target the one- to five-year maturity segment, providing a balance of stability and income that may appeal to those with shorter time horizons.Snapshot (cost & size)MetricVCSHBSVIssuerVanguardVanguardShare price$78.41 (as of 2026-07-23)$77.40 (as of 2026-07-23)Expense ratio0.03%0.03%1-yr return (as of 2026-07-23)3.30%2.70%Dividend yield4.50%4.00%Beta0.130.09AUM$51.9 billion$69.9 billionBeta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.Both funds are extremely affordable with identical 0.03% expense ratios. However, investors receive a higher payout from the corporate-only fund, which provides a trailing-12-month yield approximately 0.44 percentage points higher than its government-inclusive counterpart.Performance & risk comparisonMetricVCSHBSVMax drawdown (5 yr)(9.50%)(8.50%)Growth of $1,000 over 5 years (total return)$1,119$1,081The Vanguard Short-Term Bond ETF aims to replicate the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. This strategy involves holding a broad mix of 3,205 positions, including U.S. government bonds, international issues, and high-quality corporate credit. Its largest positions include United States Treasury Note/Bond 4.13% 06/30/2031 at 1.19% and United States Treasury Note/Bond 3.50% 01/31/2028 at 1.12%. The fund was launched in 2007. The Vanguard Short-Term Bond ETF has paid $3.12 per share over the trailing 12 months, which on its recent ~$77.40 share price works out to a 4.00% yield.The Vanguard Short-Term Corporate Bond ETF targets investment-grade corporate debt with maturities between one and five years. It maintains a massive portfolio of 3,023 holdings, ensuring that single-issuer risk is minimized. The fund generally offers higher interest rates to compensate for credit risk. Its holdings are highly diversified, and no individual position exceeds 0.94% of the total assets. The fund was launched in 2009. The Vanguard Short-Term Corporate Bond ETF has paid $3.51 per share over the trailing 12 months, which on its recent ~$78.41 share price works out to a 4.50% yield.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info