GOVT vs. VXUS
GOVT (iShares U.S. Treasury Bond ETF) and VXUS (Vanguard Total International Stock ETF) are both exchange-traded funds - GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core Bond Index, while VXUS is a Global Equities fund tracking the FTSE Global All Cap ex US Index. Both are passively managed. Over the past 10 years, GOVT returned 0.86%/yr vs 9.19%/yr for VXUS. At a correlation of -0.10, they often move in opposite directions. Both charge a 0.05% expense ratio.
Performance
GOVT vs. VXUS - Performance Comparison
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Returns By Period
In the year-to-date period, GOVT achieves a -0.33% return, which is significantly lower than VXUS's 10.17% return. Over the past 10 years, GOVT has underperformed VXUS with an annualized return of 0.86%, while VXUS has yielded a comparatively higher 9.19% annualized return.
GOVT
- 1D
- -0.35%
- 1M
- -0.59%
- YTD
- -0.33%
- 6M
- -0.22%
- 1Y
- 3.74%
- 3Y*
- 2.73%
- 5Y*
- -0.50%
- 10Y*
- 0.86%
VXUS
- 1D
- -3.73%
- 1M
- -2.81%
- YTD
- 10.17%
- 6M
- 12.29%
- 1Y
- 25.97%
- 3Y*
- 17.71%
- 5Y*
- 7.67%
- 10Y*
- 9.19%
GOVT vs. VXUS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | -0.33% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
VXUS Vanguard Total International Stock ETF | 10.17% | 32.35% | 5.08% | 15.86% | -16.08% | 8.98% | 10.66% | 21.75% | -14.43% | 27.46% |
Correlation
The correlation between GOVT and VXUS is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.35 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.28 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.14 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.03 |
Correlation (All Time) Calculated using the full available price history since Feb 27, 2012 | -0.10 |
The correlation between GOVT and VXUS shifts across timeframes, from -0.10 (all time) to 0.35 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
GOVT vs. VXUS — Risk / Return Rank
GOVT
VXUS
GOVT vs. VXUS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Treasury Bond ETF (GOVT) and Vanguard Total International Stock ETF (VXUS). 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.
| GOVT | VXUS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.80 | ||
| Sortino ratioReturn per unit of downside risk | -0.98 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.31 | -0.16 |
| Calmar ratioReturn relative to maximum drawdown | 1.12 | 2.34 | -1.22 |
| Martin ratioReturn relative to average drawdown | 3.25 | 9.11 | -5.86 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| GOVT | VXUS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.89 | 1.69 | -0.80 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.08 | 0.48 | -0.56 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.16 | 0.54 | -0.37 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.26 | 0.37 | -0.11 |
Drawdowns
GOVT vs. VXUS - Drawdown Comparison
The maximum GOVT drawdown since its inception was -19.07%, smaller than the maximum VXUS drawdown of -35.97%. Use the drawdown chart below to compare losses from any high point for GOVT and VXUS.
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Drawdown Indicators
| GOVT | VXUS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.07% | -35.97% | +16.90% |
Max Drawdown (1Y)Largest decline over 1 year | -2.85% | -11.27% | +8.42% |
Max Drawdown (3Y)Largest decline over 3 years | -5.43% | -13.58% | +8.15% |
Max Drawdown (5Y)Largest decline over 5 years | -16.60% | -29.44% | +12.84% |
Max Drawdown (10Y)Largest decline over 10 years | -19.07% | -35.97% | +16.90% |
Current DrawdownCurrent decline from peak | -7.38% | -4.52% | -2.86% |
Average DrawdownAverage peak-to-trough decline | -5.25% | -8.21% | +2.96% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.98% | 2.89% | -1.91% |
Volatility
GOVT vs. VXUS - Volatility Comparison
The current volatility for iShares U.S. Treasury Bond ETF (GOVT) is 1.06%, while Vanguard Total International Stock ETF (VXUS) has a volatility of 6.16%. This indicates that GOVT experiences smaller price fluctuations and is considered to be less risky than VXUS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| GOVT | VXUS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.06% | 6.16% | -5.10% |
Volatility (6M)Calculated over the trailing 6-month period | 2.54% | 13.58% | -11.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.60% | 15.67% | -12.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.04% | 16.12% | -10.08% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.22% | 17.19% | -11.97% |
GOVT vs. VXUS - Expense Ratio Comparison
Both GOVT and VXUS have an expense ratio of 0.05%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
GOVT vs. VXUS - Dividend Comparison
GOVT's dividend yield for the trailing twelve months is around 3.59%, more than VXUS's 2.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | 3.59% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
VXUS Vanguard Total International Stock ETF | 2.75% | 3.18% | 3.37% | 3.24% | 3.09% | 3.10% | 2.14% | 3.06% | 3.18% | 2.73% | 2.93% | 2.83% |
Frequently Asked Questions
GOVT and VXUS have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VXUS has higher volatility (6.16%) compared to GOVT (1.06%). In terms of maximum drawdown, GOVT dropped -19.07% vs VXUS's -35.97%.
On 10-year performance, VXUS leads with 9.19% vs 0.86% for GOVT. Both ETFs have the same 0.05% expense ratio. On volatility, GOVT has been the lower-risk option at 1.06%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VXUS has performed better with a 9.19% return vs 0.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GOVT and VXUS have the same expense ratio: 0.05% per year.
GOVT has the higher dividend yield at 3.59%, compared with 2.75% for VXUS.
GOVT is categorized as Government Bonds, while VXUS is Global Equities. GOVT tracks ICE U.S. Treasury Core Bond Index, while VXUS tracks FTSE Global All Cap ex US Index. They also come from different issuers: iShares and Vanguard.
VXUS currently has the higher Sharpe Ratio (1.69 vs 0.89), 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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