BIV vs. VGSH

Last updated Jun 3, 2026

BIV (Vanguard Intermediate-Term Bond Index ETF) and VGSH (Vanguard Short-Term Treasury ETF) are both exchange-traded funds - BIV is a Intermediate Core Bond fund tracking the Bloomberg U.S. 5–10 Year Government/Credit Float Adjusted Bond Index, while VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, BIV returned 1.94%/yr vs 1.74%/yr for VGSH. A 0.70 correlation means they provide meaningful diversification when combined. Both charge a 0.03% expense ratio.

Performance

BIV vs. VGSH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Intermediate-Term Bond Index ETF (BIV) and Vanguard Short-Term Treasury ETF (VGSH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BIV achieves a -0.02% return, which is significantly lower than VGSH's 0.52% return. Over the past 10 years, BIV has outperformed VGSH with an annualized return of 1.94%, while VGSH has yielded a comparatively lower 1.74% annualized return.

BIV

• 1D: 0.08%
• 1M: -0.04%
• YTD: -0.02%
• 6M: -0.05%
• 1Y: 5.02%
• 3Y*: 4.34%
• 5Y*: 0.39%
• 10Y*: 1.94%

VGSH

• 1D: 0.00%
• 1M: 0.01%
• YTD: 0.52%
• 6M: 0.86%
• 1Y: 3.45%
• 3Y*: 4.16%
• 5Y*: 1.83%
• 10Y*: 1.74%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BIV vs. VGSH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BIV Vanguard Intermediate-Term Bond Index ETF	-0.02%	8.52%	1.57%	6.07%	-13.21%	-2.40%	9.67%	10.34%	-0.19%	3.65%
VGSH Vanguard Short-Term Treasury ETF	0.52%	5.07%	4.00%	4.31%	-3.86%	-0.60%	3.04%	3.52%	1.55%	0.04%

Correlation

The correlation between BIV and VGSH is 0.86, 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	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.78
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009	0.70

The correlation between BIV and VGSH shifts across timeframes, from 0.70 (all time) to 0.86 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

BIV vs. VGSH — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BIV

BIV Risk / Return Rank: 32
BIV Sharpe Ratio Rank: 34
BIV Sortino Ratio Rank: 35
BIV Omega Ratio Rank: 32
BIV Calmar Ratio Rank: 30
BIV Martin Ratio Rank: 31

VGSH

VGSH Risk / Return Rank: 83
VGSH Sharpe Ratio Rank: 82
VGSH Sortino Ratio Rank: 92
VGSH Omega Ratio Rank: 89
VGSH Calmar Ratio Rank: 75
VGSH Martin Ratio Rank: 78

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BIV vs. VGSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Bond Index ETF (BIV) 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.

	BIV	VGSH	Difference
Sharpe ratio Return per unit of total volatility	1.24	2.69	-1.45
Sortino ratio Return per unit of downside risk	1.85	4.45	-2.60
Omega ratio Gain probability vs. loss probability	1.22	1.57	-0.35
Calmar ratio Return relative to maximum drawdown	1.49	3.81	-2.32
Martin ratio Return relative to average drawdown	4.56	15.25	-10.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BIV vs. VGSH - Sharpe Ratio Comparison

The current BIV Sharpe Ratio is 1.24, which is lower than the VGSH Sharpe Ratio of 2.69. The chart below compares the historical Sharpe Ratios of BIV and VGSH, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BIV	VGSH	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.24	2.69	-1.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.06	0.93	-0.87
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.35	1.11	-0.76
Sharpe Ratio (All Time) Calculated using the full available price history	0.65	1.02	-0.37

Drawdowns

BIV vs. VGSH - Drawdown Comparison

The maximum BIV drawdown since its inception was -18.95%, which is greater than VGSH's maximum drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for BIV and VGSH.

Drawdown Indicators

	BIV	VGSH	Difference
Max Drawdown Largest peak-to-trough decline	-18.95%	-5.70%	-13.25%
Max Drawdown (1Y) Largest decline over 1 year	-3.18%	-0.88%	-2.30%
Max Drawdown (3Y) Largest decline over 3 years	-6.07%	-0.97%	-5.10%
Max Drawdown (5Y) Largest decline over 5 years	-18.74%	-5.66%	-13.08%
Max Drawdown (10Y) Largest decline over 10 years	-18.95%	-5.70%	-13.25%
Current Drawdown Current decline from peak	-1.82%	-0.26%	-1.56%
Average Drawdown Average peak-to-trough decline	-3.39%	-0.60%	-2.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.04%	0.22%	+0.82%

Volatility

BIV vs. VGSH - Volatility Comparison

Vanguard Intermediate-Term Bond Index ETF (BIV) has a higher volatility of 1.38% compared to Vanguard Short-Term Treasury ETF (VGSH) at 0.36%. This indicates that BIV'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.

Volatility by Period

	BIV	VGSH	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.38%	0.36%	+1.02%
Volatility (6M) Calculated over the trailing 6-month period	2.92%	0.88%	+2.04%
Volatility (1Y) Calculated over the trailing 1-year period	4.06%	1.29%	+2.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.40%	1.97%	+4.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.50%	1.57%	+3.93%

BIV vs. VGSH - Expense Ratio Comparison

Both BIV 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

BIV vs. VGSH - Dividend Comparison

BIV's dividend yield for the trailing twelve months is around 4.21%, more than VGSH's 3.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BIV Vanguard Intermediate-Term Bond Index ETF	4.21%	4.01%	3.79%	3.09%	2.41%	3.42%	2.95%	2.75%	2.88%	2.69%	3.01%	3.02%
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

Can I hold both BIV and VGSH in my portfolio?

BIV and VGSH have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BIV or VGSH?

BIV has higher volatility (1.38%) compared to VGSH (0.36%). In terms of maximum drawdown, BIV dropped -18.95% vs VGSH's -5.70%.

Which ETF is better, BIV or VGSH?

On 10-year performance, BIV leads with 1.94% vs 1.74% for VGSH. Both ETFs have the same 0.03% expense ratio. On volatility, VGSH has been the lower-risk option at 0.36%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BIV or VGSH?

Over the 10-year period, BIV has performed better with a 1.94% return vs 1.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BIV or VGSH?

BIV and VGSH have the same expense ratio: 0.03% per year.

Which ETF pays a higher dividend yield, BIV or VGSH?

BIV has the higher dividend yield at 4.21%, compared with 3.87% for VGSH.

What is the main difference between BIV and VGSH?

BIV is categorized as Intermediate Core Bond, while VGSH is Government Bonds. BIV tracks Bloomberg U.S. 5–10 Year Government/Credit Float Adjusted Bond Index, while VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index.

Which has better risk-adjusted returns?

VGSH currently has the higher Sharpe Ratio (2.69 vs 1.24), 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.