The Vanguard Short-Term Corporate Bond ETF (VCSH) is an exchange-traded fund designed to track the performance of an index composed of short-term investment-grade corporate bonds issued in the United States. The ETF is managed by Vanguard Group Inc. and trades under the ticker VCSH on Nasdaq.
Classified as a short-term fixed-income ETF with exposure to U.S. investment-grade corporate credit, VCSH seeks to reflect, before fees and expenses, the aggregated performance of the corporate debt securities included in its benchmark index.
The fund follows a passive management strategy, replicating the Bloomberg U.S. 1-5 Year Corporate Bond Index, which consists of investment-grade corporate bonds with short-term maturities.
Composition / Exposure profile
VCSH provides exposure to the U.S. short-term corporate credit market, including bonds issued by companies across sectors such as:
• Financials
• Industrials
• Communication services
• Health care
• Information technology
• Other investment-grade corporate sectors
This composition seeks to provide exposure to quality corporate credit with lower interest rate sensitivity compared with longer-duration bonds.
Structure and costs
VCSH shares trade on the secondary market on Nasdaq during regular trading hours. Creation and redemption occur through authorized participants, helping maintain alignment between market price and net asset value.
The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. VCSH trades exclusively under the ticker VCSH.
History and evolution of the ETF
The Vanguard Short-Term Corporate Bond ETF was launched in 2009, during a period of expansion in fixed-income ETFs focused on lower-duration corporate credit exposure.
Since inception, the fund has been widely used by institutional and individual investors seeking exposure to high-quality corporate bonds with a shorter maturity profile.
In recent years, VCSH has reflected Federal Reserve interest rate cycles, corporate credit repricing, and investor demand for lower-volatility fixed-income instruments relative to longer-term bonds.
Additional Information
Vanguard Scottsdale Funds - Vanguard Short-Term Corporate Bond ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $43.93 Billions.
Over the past 12 months, Vanguard Scottsdale Funds - Vanguard Short-Term Corporate Bond ETF recorded a return of 4.55%, with its price trading between $78.59 and $80.20 during the same period.
The ETF is traded under the ticker VCSH.