VGSH vs. VCSH: Same Cost, Higher Yield Comes With More Risk

Overview

• Fresh figures show VCSH pays a higher dividend yield than VGSH at about 4.34% versus 3.95%, and it leads on one‑year return at 4.89% versus 3.78%.
• Both ETFs charge a 0.03% expense ratio and are large funds, with VGSH at about $32.7 billion in assets and VCSH at about $48.3 billion.
• VGSH holds only U.S. Treasury bonds, which carry very low credit risk backed by the federal government.
• VCSH owns thousands of investment‑grade corporate bonds, including issuers like Bank of America, which ties results to corporate health and investor sentiment toward company debt.
• Risk metrics favor VGSH for stability, as VCSH shows a higher beta of 0.41 and a deeper five‑year max drawdown of 9.46% compared with VGSH at 0.25 and 5.72%.