FGOVX vs. VSBSX

Last updated Jun 26, 2026

FGOVX (Fidelity Government Income Fund) and VSBSX (Vanguard Short-Term Treasury Index Fund Admiral Shares) are both Government Bonds funds. Over the past 10 years, FGOVX returned 0.76%/yr vs 1.73%/yr for VSBSX. A 0.75 correlation means they provide meaningful diversification when combined. FGOVX charges 0.45%/yr vs 0.07%/yr for VSBSX.

Performance

FGOVX vs. VSBSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Government Income Fund (FGOVX) and Vanguard Short-Term Treasury Index Fund Admiral Shares (VSBSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with FGOVX having a 0.55% return and VSBSX slightly higher at 0.56%. Over the past 10 years, FGOVX has underperformed VSBSX with an annualized return of 0.76%, while VSBSX has yielded a comparatively higher 1.73% annualized return.

FGOVX

• 1D: 0.44%
• 1M: 0.75%
• YTD: 0.55%
• 6M: 0.71%
• 1Y: 3.86%
• 3Y*: 3.11%
• 5Y*: -0.52%
• 10Y*: 0.76%

VSBSX

• 1D: 0.10%
• 1M: 0.11%
• YTD: 0.56%
• 6M: 0.66%
• 1Y: 2.93%
• 3Y*: 4.35%
• 5Y*: 1.92%
• 10Y*: 1.73%

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

FGOVX vs. VSBSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FGOVX Fidelity Government Income Fund	0.55%	6.57%	0.09%	4.23%	-13.09%	-2.25%	6.79%	6.41%	0.63%	2.22%
VSBSX Vanguard Short-Term Treasury Index Fund Admiral Shares	0.56%	5.08%	4.39%	4.23%	-3.87%	-0.69%	3.09%	3.51%	1.52%	0.35%

Correlation

The correlation between FGOVX and VSBSX is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009	0.75

The correlation between FGOVX and VSBSX has been stable across timeframes, ranging from 0.75 to 0.80 - a consistent structural relationship.

Return for Risk

FGOVX vs. VSBSX — Risk / Return Rank

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

FGOVX

FGOVX Risk / Return Rank: 18
FGOVX Sharpe Ratio Rank: 19
FGOVX Sortino Ratio Rank: 19
FGOVX Omega Ratio Rank: 18
FGOVX Calmar Ratio Rank: 18
FGOVX Martin Ratio Rank: 16

VSBSX

VSBSX Risk / Return Rank: 85
VSBSX Sharpe Ratio Rank: 81
VSBSX Sortino Ratio Rank: 87
VSBSX Omega Ratio Rank: 84
VSBSX Calmar Ratio Rank: 85
VSBSX Martin Ratio Rank: 87

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.

FGOVX vs. VSBSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Government Income Fund (FGOVX) and Vanguard Short-Term Treasury Index Fund Admiral Shares (VSBSX). 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.

	FGOVX	VSBSX	Difference
Sharpe ratio: Return per unit of total volatility	1.02	2.30	-1.28
Sortino ratio: Return per unit of downside risk	1.53	3.63	-2.10
Omega ratio: Gain probability vs. loss probability	1.18	1.48	-0.30
Calmar ratio: Return relative to maximum drawdown	1.27	3.58	-2.32
Martin ratio: Return relative to average drawdown	3.54	14.21	-10.67

FGOVX vs. VSBSX - Sharpe Ratio Comparison

The current FGOVX Sharpe Ratio is 1.02, which is lower than the VSBSX Sharpe Ratio of 2.30. The chart below compares the historical Sharpe Ratios of FGOVX and VSBSX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FGOVX vs. VSBSX - Drawdown Comparison

The maximum FGOVX drawdown since its inception was -19.93%, which is greater than VSBSX's maximum drawdown of -5.77%. Use the drawdown chart below to compare losses from any high point for FGOVX and VSBSX.

Drawdown Indicators

	FGOVX	VSBSX	Difference
Max Drawdown Largest peak-to-trough decline	-19.93%	-5.77%	-14.16%
Max Drawdown (1Y) Largest decline over 1 year	-3.06%	-0.84%	-2.22%
Max Drawdown (3Y) Largest decline over 3 years	-6.33%	-0.84%	-5.49%
Max Drawdown (5Y) Largest decline over 5 years	-18.00%	-5.77%	-12.23%
Max Drawdown (10Y) Largest decline over 10 years	-19.93%	-5.77%	-14.16%
Current Drawdown Current decline from peak	-6.49%	-0.16%	-6.33%
Average Drawdown Average peak-to-trough decline	-3.94%	-0.59%	-3.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.09%	0.21%	+0.88%

Volatility

FGOVX vs. VSBSX - Volatility Comparison

Fidelity Government Income Fund (FGOVX) has a higher volatility of 1.17% compared to Vanguard Short-Term Treasury Index Fund Admiral Shares (VSBSX) at 0.48%. This indicates that FGOVX's price experiences larger fluctuations and is considered to be riskier than VSBSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FGOVX	VSBSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.17%	0.48%	+0.69%
Volatility (6M) Calculated over the trailing 6-month period	2.81%	0.94%	+1.87%
Volatility (1Y) Calculated over the trailing 1-year period	3.80%	1.30%	+2.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.10%	1.96%	+4.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.04%	1.54%	+3.50%

FGOVX vs. VSBSX - Expense Ratio Comparison

FGOVX has a 0.45% expense ratio, which is higher than VSBSX's 0.07% expense ratio.

Dividends

FGOVX vs. VSBSX - Dividend Comparison

FGOVX's dividend yield for the trailing twelve months is around 3.47%, less than VSBSX's 3.84% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FGOVX Fidelity Government Income Fund	3.47%	3.37%	3.20%	2.57%	1.13%	0.60%	2.39%	2.10%	2.08%	1.81%	2.69%	2.25%
VSBSX Vanguard Short-Term Treasury Index Fund Admiral Shares	3.84%	3.98%	4.50%	3.29%	1.12%	0.63%	1.72%	2.26%	1.80%	1.10%	0.76%	0.71%

Frequently Asked Questions

Can I hold both FGOVX and VSBSX in my portfolio?

FGOVX and VSBSX have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FGOVX or VSBSX?

FGOVX has higher volatility (1.17%) compared to VSBSX (0.48%). In terms of maximum drawdown, FGOVX dropped -19.93% vs VSBSX's -5.77%.

Which has better risk-adjusted returns?

VSBSX currently has the higher Sharpe Ratio (2.30 vs 1.02), 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.