Vanguard Short-Term Corporate Bond ETF (VCSH): Complete Beginner's Guide

Vanguard Short-Term Corporate Bond ETF (VCSH) is a short-term corp bond ETF from Vanguard with an expense ratio of 0.04% and $35.0B in assets under management. Our Beginner Suitability Score: 10/10 (Great for Beginners). 5-year annualized return: 2.00%.

Last updated: April 2026

Vanguard • Short-Term Corp Bond

Expense Ratio

0.04%

AUM

$35.0B

Dividend Yield

3.50%

Inception

2009

Beginner Score

10/10

What is Vanguard Short-Term Corporate Bond ETF?

VCSH tracks the Bloomberg U.S. 1-5 Year Corporate Bond Index, investing in investment-grade corporate bonds with short maturities. By focusing on bonds that mature within one to five years, the fund limits interest rate risk while still capturing the yield advantage of corporate debt over government bonds. It is a popular choice for investors who want more income than money markets but less volatility than longer-term bond funds.

VCSH is managed by Vanguard and has been available since 2009. With $35.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.04%, which means for every $10,000 you invest, you pay approximately $4 per year in management fees.

VCSH at a Glance — Key Metrics

Expense Ratio	0.04%
Total Holdings	2,300
P/E Ratio	N/A
Beta	0.15
Dividend Yield	3.50%
AUM	$35.0B
Inception Year	2009
Issuer	Vanguard

Top 10 Holdings in VCSH

VCSH holds 2,300 different securities. Here are the largest positions that make up the core of this fund:

#	Company	Ticker	Weight
1	JPMorgan Chase 4.6% 2027	JPM 4.6 27	0.50%
2	Bank of America 4.45% 2028	BAC 4.45 28	0.50%
3	Goldman Sachs 4.5% 2027	GS 4.5 27	0.40%
4	Apple 3.25% 2028	AAPL 3.25 28	0.40%
5	Microsoft 2.92% 2027	MSFT 2.92 27	0.40%
6	Citigroup 4.3% 2028	C 4.3 28	0.40%
7	Wells Fargo 4.15% 2027	WFC 4.15 27	0.30%
8	Morgan Stanley 4.2% 2028	MS 4.2 28	0.30%
9	Amazon 3.6% 2027	AMZN 3.6 27	0.30%
10	Verizon 4.33% 2028	VZ 4.33 28	0.30%

VCSH Top 10 Holdings

VCSH's top holding is JPMorgan Chase 4.6% 2027 (JPM 4.6 27) at 0.50%, followed by Bank of America 4.45% 2028 (BAC 4.45 28) at 0.50% and Goldman Sachs 4.5% 2027 (GS 4.5 27) at 0.40%. The top 10 holdings account for 3.80% of the fund's 2,300 total positions.

See how VCSH's holdings overlap with similar ETFs →

View data table

Rank	Company	Ticker	Weight
1	JPMorgan Chase 4.6% 2027	JPM 4.6 27	0.50%
2	Bank of America 4.45% 2028	BAC 4.45 28	0.50%
3	Goldman Sachs 4.5% 2027	GS 4.5 27	0.40%
4	Apple 3.25% 2028	AAPL 3.25 28	0.40%
5	Microsoft 2.92% 2027	MSFT 2.92 27	0.40%
6	Citigroup 4.3% 2028	C 4.3 28	0.40%
7	Wells Fargo 4.15% 2027	WFC 4.15 27	0.30%
8	Morgan Stanley 4.2% 2028	MS 4.2 28	0.30%
9	Amazon 3.6% 2027	AMZN 3.6 27	0.30%
10	Verizon 4.33% 2028	VZ 4.33 28	0.30%

Rank	Company	Ticker	Weight
1	JPMorgan Chase 4.6% 2027	JPM 4.6 27	0.50%
2	Bank of America 4.45% 2028	BAC 4.45 28	0.50%
3	Goldman Sachs 4.5% 2027	GS 4.5 27	0.40%
4	Apple 3.25% 2028	AAPL 3.25 28	0.40%
5	Microsoft 2.92% 2027	MSFT 2.92 27	0.40%
6	Citigroup 4.3% 2028	C 4.3 28	0.40%
7	Wells Fargo 4.15% 2027	WFC 4.15 27	0.30%
8	Morgan Stanley 4.2% 2028	MS 4.2 28	0.30%
9	Amazon 3.6% 2027	AMZN 3.6 27	0.30%
10	Verizon 4.33% 2028	VZ 4.33 28	0.30%

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VCSH Performance History

Here's how VCSH has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:

YTD

0.90%

1 Year

4.50%

3 Year

1.00%

5 Year

2.00%

10 Year

2.20%

VCSH Performance Returns

VCSH has returned 2.00% annualized over 5 years and 2.20% over 10 years. YTD return is 0.90%.

Compare VCSH with other ETFs →

View data table

Period	Return
YTD	0.90%
1 Year	4.50%
3 Year	1.00%
5 Year	2.00%
10 Year	2.20%

Rank	Company	Ticker	Weight
1	JPMorgan Chase 4.6% 2027	JPM 4.6 27	0.50%
2	Bank of America 4.45% 2028	BAC 4.45 28	0.50%
3	Goldman Sachs 4.5% 2027	GS 4.5 27	0.40%
4	Apple 3.25% 2028	AAPL 3.25 28	0.40%
5	Microsoft 2.92% 2027	MSFT 2.92 27	0.40%
6	Citigroup 4.3% 2028	C 4.3 28	0.40%
7	Wells Fargo 4.15% 2027	WFC 4.15 27	0.30%
8	Morgan Stanley 4.2% 2028	MS 4.2 28	0.30%
9	Amazon 3.6% 2027	AMZN 3.6 27	0.30%
10	Verizon 4.33% 2028	VZ 4.33 28	0.30%

Beginner Suitability Score: 10/10

Great for Beginners

Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.

VCSH scores 10/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 2,300 holdings, and has been available since 2009, giving it a proven track record.

How to Buy VCSH — Step by Step

Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
Search for "VCSH" — Use the search bar in your brokerage platform to find Vanguard Short-Term Corporate Bond ETF.
Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.

VCSH Sector Allocation

Here's how VCSH distributes its investments across different sectors of the economy:

VCSH Sector Allocation

VCSH's largest sector allocation is Financials/Banking at 38.0%, followed by Technology at 9.0% and Consumer Non-Cyclical at 9.0%.

View data table

Sector	Weight
Financials/Banking	38.0%
Technology	9.0%
Consumer Non-Cyclical	9.0%
Healthcare/Pharma	8.0%
Utilities	8.0%
Communications	7.0%
Industrials	7.0%
Energy	6.0%
Consumer Cyclical	5.0%
Real Estate	3.0%

Rank	Company	Ticker	Weight
1	JPMorgan Chase 4.6% 2027	JPM 4.6 27	0.50%
2	Bank of America 4.45% 2028	BAC 4.45 28	0.50%
3	Goldman Sachs 4.5% 2027	GS 4.5 27	0.40%
4	Apple 3.25% 2028	AAPL 3.25 28	0.40%
5	Microsoft 2.92% 2027	MSFT 2.92 27	0.40%
6	Citigroup 4.3% 2028	C 4.3 28	0.40%
7	Wells Fargo 4.15% 2027	WFC 4.15 27	0.30%
8	Morgan Stanley 4.2% 2028	MS 4.2 28	0.30%
9	Amazon 3.6% 2027	AMZN 3.6 27	0.30%
10	Verizon 4.33% 2028	VZ 4.33 28	0.30%

Dollar Cost Averaging Into VCSH

Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):

Monthly	10 Years	20 Years	30 Years
$100/mo	$18,417	$59,295	$150,030
$250/mo	$46,041	$148,237	$375,074
$500/mo	$92,083	$296,474	$750,148

*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.

Fee impact: With VCSH's expense ratio of 0.04%, a $10,000 investment would lose approximately $344 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.

VCSH Fee Impact Over 20 Years

VCSH's expense ratio of 0.04% costs $344 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,266.

Understand expense ratios →Calculate your returns →

View data table

Year	Without Fees	With Fees	Fee Cost
0	$10,000	$10,000	$0
5	$14,693	$14,666	$27
10	$21,589	$21,509	$80
15	$31,722	$31,546	$176
20	$46,610	$46,266	$344

Rank	Company	Ticker	Weight
1	JPMorgan Chase 4.6% 2027	JPM 4.6 27	0.50%
2	Bank of America 4.45% 2028	BAC 4.45 28	0.50%
3	Goldman Sachs 4.5% 2027	GS 4.5 27	0.40%
4	Apple 3.25% 2028	AAPL 3.25 28	0.40%
5	Microsoft 2.92% 2027	MSFT 2.92 27	0.40%
6	Citigroup 4.3% 2028	C 4.3 28	0.40%
7	Wells Fargo 4.15% 2027	WFC 4.15 27	0.30%
8	Morgan Stanley 4.2% 2028	MS 4.2 28	0.30%
9	Amazon 3.6% 2027	AMZN 3.6 27	0.30%
10	Verizon 4.33% 2028	VZ 4.33 28	0.30%

Pros and Cons of VCSH

Pros

✓Short duration limits interest rate risk while still earning a corporate credit premium
✓Ultra-low 0.04% expense ratio makes it one of the cheapest short-term bond funds
✓Over 2,300 holdings provide broad diversification across corporate issuers
✓More stable price than intermediate and long-term bond funds during rate increases

Cons

✗Lower yields than intermediate or long-term corporate bond funds in normal markets
✗Heavy financial sector concentration means banking stress impacts the fund disproportionately
✗Corporate credit spreads can still widen during recessions, causing modest losses

VCSH vs Similar ETFs

See how VCSH stacks up against similar funds:

VCSH vs BSVCompare →

Frequently Asked Questions

Is VCSH a good ETF for beginners?▾

VCSH has a Beginner Suitability Score of 10/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.

What is the expense ratio of VCSH?▾

VCSH has an expense ratio of 0.04%. This means for every $10,000 you invest, you pay approximately $4 per year in fees. This is considered very low and cost-efficient.

How much money do I need to invest in VCSH?▾

You can invest in VCSH with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.

Does VCSH pay dividends?▾

Yes, VCSH pays dividends with a current yield of approximately 3.50%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.

What are the top holdings in VCSH?▾

The top holdings in VCSH include JPMorgan Chase 4.6% 2027 (0.50%), Bank of America 4.45% 2028 (0.50%), Goldman Sachs 4.5% 2027 (0.40%), and more. The fund holds 2,300 total positions, providing broad diversification across many companies.

What sectors does VCSH invest in?▾

VCSH's largest sector allocations are Financials/Banking (38.00%), Technology (9.00%), Consumer Non-Cyclical (9.00%). This sector distribution shows a focus on financials/banking stocks.

How much do VCSH's fees cost over time?▾

With an expense ratio of 0.04%, a $10,000 investment in VCSH would lose approximately $344 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.