Vanguard Short-Term Treasury Index Fund Institutional Shares (VSBIX) Sharpe Ratio: 2.80

VSBIX's Sharpe Ratio of 2.80 indicates that for each unit of volatility, it generates 2.80 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 18, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

VSBIX Sharpe Ratio Rank

Exceptional

VSBIX ranks above 90.5% of all investments in our database based on Sharpe Ratio over the past 12 months, demonstrating exceptional risk-adjusted returns. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

Strong returns with low total volatility → Higher rank
High volatility (both upside and downside) → Lower rank
Consistent returns → Higher rank than volatile returns of same magnitude
Sharp drawdowns increase volatility → Lower rank

What you can do with this information

Suitable as a core holding given strong risk-adjusted returns
Monitor rank changes to detect deteriorating return-to-volatility profile
Exceptional Sharpe ratio supports larger position sizes
Compare with category peers to assess whether strength is investment-specific or category-wide

VSBIX Sharpe Ratio Market Positioning

The chart shows VSBIX's Sharpe Ratio relative to all mutual funds on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

Red zone (bottom 25%): 1.35 or lower
Yellow zone (middle 50%): 1.35 to 2.28
Green zone (top 25%): 2.28 or higher
Top 1%: 4.16+
Median: 1.90 — half of all investments score higher

How it compares to other similar mutual funds

The table compares Vanguard Short-Term Treasury Index Fund Institutional Shares's Sharpe Ratio with other mutual funds in the Government Bonds category across multiple time periods, showing how VSBIX's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 18, 2026.

Symbol	Name	1Y Sharpe Ratio
FEUGX	Federated Hermes Adjustable Rate Fund	3.82
GUSTX	GMO U.S. Treasury Fund	3.34
VSBIX	Vanguard Short-Term Treasury Index Fund Institutional Shares	2.80
VSBSX	Vanguard Short-Term Treasury Index Fund Admiral Shares	2.75
VGIVX	Vanguard Emerging Markets Government Bond Index Fund Institutional Shares	2.72
VGAVX	Vanguard Emerging Markets Government Bond Index Fund Admiral Shares	2.68
MDSIX	Integrity Short Term Government Fund	2.57
DFFGX	DFA Short-Term Government Portfolio	2.31
VFFIX	Victory INCORE Fund for Income Class I	2.14
RFBAX	Davis Government Bond Fund	2.00

Benchmark Against

Benchmark

S&P 500 Index

Lookback Period

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Historical Sharpe Ratio

The chart shows VSBIX's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when VSBIX consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does VSBIX fit in your portfolio?

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