VCSH and IGSB Are Nearly Identical. Here's How to Choose Between Them. | The Motley Fool

Investors evaluating short-term, investment-grade corporate bonds often compare VCSH and IGSB, two cost-efficient funds with maturities of one to five years. The Vanguard Short-Term Corporate Bond ETF (VCSH) charges 0.03% expense ratio, slightly less than its iShares counterpart (IGSB) at 0.04%. IGSB also offers a marginally higher trailing-12-month distribution yield of about 4.60%, while VCSH has delivered roughly $3.51 per share over the same period. Both funds demonstrate broad diversification: IGSB holds hundreds of bonds with no single issuer exceeding 0.31% of the portfolio; VCSH’s portfolio is similarly spread, with no position above ~0.55%. IGSB launched in 2007 and VCSH in 2009, and IGSB’s assets under management trail VCSH by a meaningful margin, providing greater liquidity for the latter.