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GBP=X vs. VGSH
Performance
Return for Risk
Drawdowns
Volatility

GBP=X vs. VGSH

Last updated Jun 24, 2026

GBP=X (USD/GBP) is a currency, while VGSH (Vanguard Short-Term Treasury ETF) is Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. Over the past 10 years, GBP=X returned 0.36%/yr vs 2.07%/yr for VGSH. With a 0.97 correlation, they move nearly in lockstep.

Performance

GBP=X vs. VGSH - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in USD/GBP (GBP=X) and Vanguard Short-Term Treasury ETF (VGSH). The values are adjusted to include any dividend payments, if applicable.

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Different Trading Currencies

GBP=X is traded in GBP, while VGSH is traded in USD. To make them comparable, the VGSH values have been converted to GBP using the latest available exchange rates.

Returns By Period

In the year-to-date period, GBP=X achieves a 2.13% return, which is significantly lower than VGSH's 2.61% return. Over the past 10 years, GBP=X has underperformed VGSH with an annualized return of 0.36%, while VGSH has yielded a comparatively higher 2.07% annualized return.

GBP=X

1D
0.11%
1M
2.19%
YTD
2.13%
6M
2.46%
1Y
2.50%
3Y*
-1.22%
5Y*
1.08%
10Y*
0.36%

VGSH

1D
0.00%
1M
1.93%
YTD
2.61%
6M
2.98%
1Y
6.11%
3Y*
2.93%
5Y*
2.89%
10Y*
2.07%
*Multi-year figures are annualized to reflect compound growth (CAGR)

GBP=X vs. VGSH - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
GBP=X
USD/GBP		2.13%-7.12%1.75%-5.00%11.89%0.95%-2.94%-3.80%5.93%-8.65%
VGSH
Vanguard Short-Term Treasury ETF		2.61%-2.41%5.82%-0.91%7.57%0.35%0.01%-0.42%7.57%-8.62%

Correlation

The correlation between GBP=X and VGSH is 0.89, 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

0.89

Correlation (3Y)
Calculated over the trailing 3-year period

0.93

Correlation (5Y)
Calculated over the trailing 5-year period

0.94

Correlation (10Y)
Calculated over the trailing 10-year period

0.96

Correlation (All Time)
Calculated using the full available price history since Nov 23, 2009

0.97

The correlation between GBP=X and VGSH has been stable across timeframes, ranging from 0.89 to 0.97 - a consistent structural relationship.

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USD/GBP

Vanguard Short-Term Treasury ETF

Often compared with GBP=X:
GBP=X vs. EUR=XGBP=X vs. CHFUSD=XGBP=X vs. ^GSPCGBP=X vs. USD=XGBP=X vs. SPYGBP=X vs. IB01.LGBP=X vs. GBPUSD=X
Often compared with VGSH:
VGSH vs. sgovVGSH vs. SHVVGSH vs. SGOVVGSH vs. SHYVGSH vs. BNDVGSH vs. VTIPVGSH vs. VCSH

Return for Risk

GBP=X vs. VGSH — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
GBP=X
GBP=X Risk / Return Rank: 7070
Overall Rank
GBP=X Sharpe Ratio Rank: 7171
Sharpe Ratio Rank
GBP=X Sortino Ratio Rank: 7070
Sortino Ratio Rank
GBP=X Omega Ratio Rank: 6969
Omega Ratio Rank
GBP=X Calmar Ratio Rank: 6969
Calmar Ratio Rank
GBP=X Martin Ratio Rank: 7070
Martin Ratio Rank
VGSH
VGSH Risk / Return Rank: 8282
Overall Rank
VGSH Sharpe Ratio Rank: 8181
Sharpe Ratio Rank
VGSH Sortino Ratio Rank: 8989
Sortino Ratio Rank
VGSH Omega Ratio Rank: 8787
Omega Ratio Rank
VGSH Calmar Ratio Rank: 7474
Calmar Ratio Rank
VGSH Martin Ratio Rank: 7676
Martin Ratio Rank
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.

GBP=X vs. VGSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for USD/GBP (GBP=X) 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.

GBP=XVGSHDifference
Sharpe ratioReturn per unit of total volatility
0.33
0.99

-0.67

Sortino ratioReturn per unit of downside risk
0.50
1.47

-0.97

Omega ratioGain probability vs. loss probability

1.06

1.18

-0.12

Calmar ratioReturn relative to maximum drawdown

0.34

1.17

-0.84

Martin ratioReturn relative to average drawdown

0.75

3.21

-2.46

GBP=X vs. VGSH - Sharpe Ratio Comparison

The current GBP=X Sharpe Ratio is 0.33, which is lower than the VGSH Sharpe Ratio of 0.99. The chart below compares the historical Sharpe Ratios of GBP=X 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.

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Drawdowns

GBP=X vs. VGSH - Drawdown Comparison

The maximum GBP=X drawdown since its inception was -22.85%, which is greater than VGSH's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for GBP=X and VGSH.

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Drawdown Indicators

GBP=XVGSHDifference

Max Drawdown

Largest peak-to-trough decline

-22.85%

-18.58%

-4.27%

Max Drawdown (1Y)

Largest decline over 1 year

-5.98%

-5.23%

-0.75%

Max Drawdown (3Y)

Largest decline over 3 years

-12.79%

-9.24%

-3.55%

Max Drawdown (5Y)

Largest decline over 5 years

-22.85%

-16.56%

-6.29%

Max Drawdown (10Y)

Largest decline over 10 years

-22.85%

-18.58%

-4.27%

Current Drawdown

Current decline from peak

-19.02%

-6.42%

-12.60%

Average Drawdown

Average peak-to-trough decline

-11.23%

-8.06%

-3.17%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.79%

1.91%

+0.88%

Volatility

GBP=X vs. VGSH - Volatility Comparison

USD/GBP (GBP=X) has a higher volatility of 1.49% compared to Vanguard Short-Term Treasury ETF (VGSH) at 1.39%. This indicates that GBP=X'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

GBP=XVGSHDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.49%

1.39%

+0.10%

Volatility (6M)

Calculated over the trailing 6-month period

4.81%

4.84%

-0.03%

Volatility (1Y)

Calculated over the trailing 1-year period

6.20%

6.21%

-0.01%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

8.21%

8.11%

+0.10%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

8.71%

8.70%

+0.01%

Frequently Asked Questions

GBP=X and VGSH have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

GBP=X has higher volatility (1.49%) compared to VGSH (1.39%). In terms of maximum drawdown, GBP=X dropped -22.85% vs VGSH's -18.58%.

VGSH currently has the higher Sharpe Ratio (0.99 vs 0.33), 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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