VGIT vs. VGSH
VGIT (Vanguard Intermediate-Term Treasury ETF) and VGSH (Vanguard Short-Term Treasury ETF) are both Government Bonds funds from Vanguard - VGIT tracks the Bloomberg U.S. Treasury 3-10 Year Index while VGSH tracks the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, VGIT returned 1.23%/yr vs 1.74%/yr for VGSH. A 0.75 correlation means they provide meaningful diversification when combined. Both charge a 0.03% expense ratio.
Performance
VGIT vs. VGSH - Performance Comparison
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Returns By Period
In the year-to-date period, VGIT achieves a -0.46% return, which is significantly lower than VGSH's 0.48% return. Over the past 10 years, VGIT has underperformed VGSH with an annualized return of 1.23%, while VGSH has yielded a comparatively higher 1.74% annualized return.
VGIT
- 1D
- -0.19%
- 1M
- -0.16%
- YTD
- -0.46%
- 6M
- -0.60%
- 1Y
- 3.54%
- 3Y*
- 3.40%
- 5Y*
- 0.05%
- 10Y*
- 1.23%
VGSH
- 1D
- -0.03%
- 1M
- 0.08%
- YTD
- 0.48%
- 6M
- 0.74%
- 1Y
- 3.43%
- 3Y*
- 4.15%
- 5Y*
- 1.81%
- 10Y*
- 1.74%
VGIT vs. VGSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGIT Vanguard Intermediate-Term Treasury ETF | -0.46% | 7.34% | 1.39% | 4.28% | -10.53% | -2.64% | 7.71% | 6.19% | 1.35% | 1.70% |
VGSH Vanguard Short-Term Treasury ETF | 0.48% | 5.07% | 4.00% | 4.31% | -3.86% | -0.60% | 3.04% | 3.52% | 1.55% | 0.04% |
Correlation
The correlation between VGIT and VGSH is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.92 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.89 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.89 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.84 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | 0.75 |
The correlation between VGIT and VGSH shifts across timeframes, from 0.75 (all time) to 0.92 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VGIT vs. VGSH — Risk / Return Rank
VGIT
VGSH
VGIT vs. VGSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Treasury ETF (VGIT) and Vanguard Short-Term Treasury ETF (VGSH). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| VGIT | VGSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.63 | ||
| Sortino ratioReturn per unit of downside risk | -2.83 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.57 | -0.38 |
| Calmar ratioReturn relative to maximum drawdown | 1.25 | 3.90 | -2.64 |
| Martin ratioReturn relative to average drawdown | 3.75 | 15.52 | -11.76 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VGIT | VGSH | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.05 | 2.68 | -1.63 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.01 | 0.93 | -0.92 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.27 | 1.11 | -0.83 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.49 | 1.01 | -0.52 |
Drawdowns
VGIT vs. VGSH - Drawdown Comparison
The maximum VGIT drawdown since its inception was -16.05%, which is greater than VGSH's maximum drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for VGIT and VGSH.
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Drawdown Indicators
| VGIT | VGSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.05% | -5.70% | -10.35% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -0.88% | -1.95% |
Max Drawdown (3Y)Largest decline over 3 years | -4.34% | -0.97% | -3.37% |
Max Drawdown (5Y)Largest decline over 5 years | -15.02% | -5.66% | -9.36% |
Max Drawdown (10Y)Largest decline over 10 years | -16.05% | -5.70% | -10.35% |
Current DrawdownCurrent decline from peak | -2.39% | -0.29% | -2.10% |
Average DrawdownAverage peak-to-trough decline | -3.52% | -0.60% | -2.92% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.94% | 0.22% | +0.72% |
Volatility
VGIT vs. VGSH - Volatility Comparison
Vanguard Intermediate-Term Treasury ETF (VGIT) has a higher volatility of 1.05% compared to Vanguard Short-Term Treasury ETF (VGSH) at 0.35%. This indicates that VGIT's price experiences larger fluctuations and is considered to be riskier than VGSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGIT | VGSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.05% | 0.35% | +0.70% |
Volatility (6M)Calculated over the trailing 6-month period | 2.33% | 0.88% | +1.45% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.38% | 1.29% | +2.09% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.38% | 1.97% | +3.41% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.50% | 1.57% | +2.93% |
VGIT vs. VGSH - Expense Ratio Comparison
Both VGIT and VGSH have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VGIT vs. VGSH - Dividend Comparison
VGIT's dividend yield for the trailing twelve months is around 3.87%, which matches VGSH's 3.87% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGIT Vanguard Intermediate-Term Treasury ETF | 3.87% | 3.79% | 3.67% | 2.73% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% |
VGSH Vanguard Short-Term Treasury ETF | 3.87% | 4.00% | 4.18% | 3.31% | 1.15% | 0.66% | 1.74% | 2.28% | 1.79% | 1.10% | 0.84% | 0.69% |
Frequently Asked Questions
With a correlation of 0.92, VGIT and VGSH move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
VGIT has higher volatility (1.05%) compared to VGSH (0.35%). In terms of maximum drawdown, VGIT dropped -16.05% vs VGSH's -5.70%.
On 10-year performance, VGSH leads with 1.74% vs 1.23% for VGIT. Both ETFs have the same 0.03% expense ratio. On volatility, VGSH has been the lower-risk option at 0.35%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VGSH has performed better with a 1.74% return vs 1.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGIT and VGSH have the same expense ratio: 0.03% per year.
VGIT and VGSH have nearly identical dividend yields, around 3.87%.
VGIT tracks Bloomberg U.S. Treasury 3-10 Year Index, while VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index.
VGSH currently has the higher Sharpe Ratio (2.68 vs 1.05), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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