DFSD vs. VGSH
DFSD (Dimensional Short-Duration Fixed Income ETF) and VGSH (Vanguard Short-Term Treasury ETF) are both exchange-traded funds - DFSD is a Short-Term Bond fund actively managed by Dimensional, while VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. DFSD is actively managed, while VGSH is passively managed. Over the past 3 years, DFSD returned 5.16%/yr vs 4.20%/yr for VGSH. A 0.80 correlation means they provide meaningful diversification when combined. DFSD charges 0.16%/yr vs 0.03%/yr for VGSH.
Performance
DFSD vs. VGSH - Performance Comparison
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Returns By Period
In the year-to-date period, DFSD achieves a 0.22% return, which is significantly lower than VGSH's 0.47% return.
DFSD
- 1D
- -0.44%
- 1M
- -0.17%
- YTD
- 0.22%
- 6M
- 0.39%
- 1Y
- 3.30%
- 3Y*
- 5.16%
- 5Y*
- —
- 10Y*
- —
VGSH
- 1D
- 0.05%
- 1M
- 0.11%
- YTD
- 0.47%
- 6M
- 0.64%
- 1Y
- 2.99%
- 3Y*
- 4.20%
- 5Y*
- 1.85%
- 10Y*
- 1.70%
DFSD vs. VGSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
DFSD Dimensional Short-Duration Fixed Income ETF | 0.22% | 6.59% | 4.60% | 6.09% | -5.87% | -0.05% |
VGSH Vanguard Short-Term Treasury ETF | 0.47% | 5.07% | 4.00% | 4.31% | -3.86% | -0.13% |
Correlation
The correlation between DFSD and VGSH is 0.84, 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 | 0.84 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.77 |
Correlation (All Time) Calculated using the full available price history since Nov 16, 2021 | 0.80 |
The correlation between DFSD and VGSH has been stable across timeframes, ranging from 0.77 to 0.84 - a consistent structural relationship.
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Return for Risk
DFSD vs. VGSH — Risk / Return Rank
DFSD
VGSH
DFSD vs. VGSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Dimensional Short-Duration Fixed Income ETF (DFSD) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| DFSD | VGSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.62 | ||
| Sortino ratioReturn per unit of downside risk | -1.15 | ||
| Omega ratioGain probability vs. loss probability | 1.32 | 1.48 | -0.16 |
| Calmar ratioReturn relative to maximum drawdown | 2.26 | 3.40 | -1.14 |
| Martin ratioReturn relative to average drawdown | 8.48 | 13.02 | -4.54 |
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Drawdowns
DFSD vs. VGSH - Drawdown Comparison
The maximum DFSD drawdown since its inception was -8.45%, which is greater than VGSH's maximum drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for DFSD and VGSH.
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Drawdown Indicators
| DFSD | VGSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -8.45% | -5.70% | -2.75% |
Max Drawdown (1Y)Largest decline over 1 year | -1.47% | -0.88% | -0.59% |
Max Drawdown (3Y)Largest decline over 3 years | -1.47% | -0.97% | -0.50% |
Max Drawdown (5Y)Largest decline over 5 years | — | -5.66% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -5.70% | — |
Current DrawdownCurrent decline from peak | -0.83% | -0.31% | -0.52% |
Average DrawdownAverage peak-to-trough decline | -2.05% | -0.60% | -1.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.39% | 0.23% | +0.16% |
Volatility
DFSD vs. VGSH - Volatility Comparison
Dimensional Short-Duration Fixed Income ETF (DFSD) has a higher volatility of 0.78% compared to Vanguard Short-Term Treasury ETF (VGSH) at 0.45%. This indicates that DFSD'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
| DFSD | VGSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.78% | 0.45% | +0.33% |
Volatility (6M)Calculated over the trailing 6-month period | 1.59% | 0.95% | +0.64% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.98% | 1.31% | +0.67% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.78% | 1.97% | +0.81% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.78% | 1.58% | +1.20% |
DFSD vs. VGSH - Expense Ratio Comparison
DFSD has a 0.16% expense ratio, which is higher than VGSH's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
DFSD vs. VGSH - Dividend Comparison
DFSD's dividend yield for the trailing twelve months is around 3.99%, more than VGSH's 3.88% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DFSD Dimensional Short-Duration Fixed Income ETF | 3.99% | 4.12% | 4.81% | 3.89% | 2.12% | 0.11% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VGSH Vanguard Short-Term Treasury ETF | 3.88% | 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
DFSD and VGSH have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
DFSD has higher volatility (0.78%) compared to VGSH (0.45%). In terms of maximum drawdown, DFSD dropped -8.45% vs VGSH's -5.70%.
On 3-year performance, DFSD leads with 5.16% vs 4.20% for VGSH. On fees, VGSH is cheaper at 0.03% per year. On volatility, VGSH has been the lower-risk option at 0.45%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, DFSD has performed better with a 5.16% return vs 4.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGSH is cheaper with a 0.03% expense ratio, compared with 0.16% for DFSD.
DFSD has the higher dividend yield at 3.99%, compared with 3.88% for VGSH.
DFSD is categorized as Short-Term Bond, while VGSH is Government Bonds. They also come from different issuers: Dimensional and Vanguard. Their fees differ too: 0.16% for DFSD and 0.03% for VGSH.
VGSH currently has the higher Sharpe Ratio (2.29 vs 1.67), 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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