Short-Term Bond ETFs: VCSH Delivers Higher Yield as VGSH Leads Treasuries on Size

Overview

• VGSH and SCHO match on mandate, fees at 0.03%, and 4.0% yields, with VGSH’s $32.7 billion size offering easier trading.
• VCSH pays more than VGSH, with a 4.34% dividend yield versus 3.95%, and it posted a 4.89% one-year return versus 3.78%.
• The extra income in VCSH reflects corporate credit exposure that has shown deeper five-year drawdowns at -9.46% versus -5.72% for VGSH.
• VGSH offers pure government credit exposure, and VCSH concentrates on investment‑grade corporate issuers.
• With fees equal across these funds at 0.03%, investors pick between a small yield boost with credit risk or Treasury safety with greater trading depth.