IBTG vs. VGSH
IBTG (iShares iBonds Dec 2026 Term Treasury ETF) and VGSH (Vanguard Short-Term Treasury ETF) are both Government Bonds funds - IBTG tracks the ICE 2026 Maturity US Treasury Index while VGSH tracks the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 5 years, IBTG returned 0.91%/yr vs 1.85%/yr for VGSH. A 0.77 correlation means they provide meaningful diversification when combined. IBTG charges 0.07%/yr vs 0.03%/yr for VGSH.
Performance
IBTG vs. VGSH - Performance Comparison
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Returns By Period
In the year-to-date period, IBTG achieves a 1.62% return, which is significantly higher than VGSH's 0.47% return.
IBTG
- 1D
- 0.02%
- 1M
- 0.23%
- YTD
- 1.62%
- 6M
- 1.66%
- 1Y
- 3.96%
- 3Y*
- 4.28%
- 5Y*
- 0.91%
- 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%
IBTG vs. VGSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
IBTG iShares iBonds Dec 2026 Term Treasury ETF | 1.62% | 4.40% | 3.97% | 4.34% | -8.18% | -3.04% | 4.23% |
VGSH Vanguard Short-Term Treasury ETF | 0.47% | 5.07% | 4.00% | 4.31% | -3.86% | -0.60% | 1.93% |
Correlation
The correlation between IBTG and VGSH is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.27 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.77 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.83 |
Correlation (All Time) Calculated using the full available price history since Feb 28, 2020 | 0.77 |
Over the past year, the correlation between IBTG and VGSH has dropped to 0.27 - well below their long-term average of 0.77, suggesting their price drivers have been diverging.
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Return for Risk
IBTG vs. VGSH — Risk / Return Rank
IBTG
VGSH
IBTG vs. VGSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2026 Term Treasury ETF (IBTG) 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.
| IBTG | VGSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +5.60 | ||
| Sortino ratioReturn per unit of downside risk | +15.85 | ||
| Omega ratioGain probability vs. loss probability | 4.25 | 1.48 | +2.78 |
| Calmar ratioReturn relative to maximum drawdown | 60.79 | 3.40 | +57.40 |
| Martin ratioReturn relative to average drawdown | 246.24 | 13.02 | +233.22 |
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Drawdowns
IBTG vs. VGSH - Drawdown Comparison
The maximum IBTG drawdown since its inception was -13.62%, which is greater than VGSH's maximum drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for IBTG and VGSH.
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Drawdown Indicators
| IBTG | VGSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.62% | -5.70% | -7.92% |
Max Drawdown (1Y)Largest decline over 1 year | -0.07% | -0.88% | +0.81% |
Max Drawdown (3Y)Largest decline over 3 years | -1.11% | -0.97% | -0.14% |
Max Drawdown (5Y)Largest decline over 5 years | -12.31% | -5.66% | -6.65% |
Max Drawdown (10Y)Largest decline over 10 years | — | -5.70% | — |
Current DrawdownCurrent decline from peak | 0.00% | -0.31% | +0.31% |
Average DrawdownAverage peak-to-trough decline | -4.85% | -0.60% | -4.25% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.02% | 0.23% | -0.21% |
Volatility
IBTG vs. VGSH - Volatility Comparison
The current volatility for iShares iBonds Dec 2026 Term Treasury ETF (IBTG) is 0.12%, while Vanguard Short-Term Treasury ETF (VGSH) has a volatility of 0.45%. This indicates that IBTG experiences smaller price fluctuations and is considered to be less risky 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
| IBTG | VGSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.12% | 0.45% | -0.33% |
Volatility (6M)Calculated over the trailing 6-month period | 0.30% | 0.95% | -0.65% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.50% | 1.31% | -0.81% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.25% | 1.97% | +1.28% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.44% | 1.58% | +1.86% |
IBTG vs. VGSH - Expense Ratio Comparison
IBTG has a 0.07% 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
IBTG vs. VGSH - Dividend Comparison
IBTG's dividend yield for the trailing twelve months is around 3.95%, more than VGSH's 3.88% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBTG iShares iBonds Dec 2026 Term Treasury ETF | 3.95% | 4.03% | 4.08% | 3.61% | 2.06% | 0.66% | 0.53% | 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
IBTG and VGSH have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGSH has higher volatility (0.45%) compared to IBTG (0.12%). In terms of maximum drawdown, IBTG dropped -13.62% vs VGSH's -5.70%.
On 5-year performance, VGSH leads with 1.85% vs 0.91% for IBTG. On fees, VGSH is cheaper at 0.03% per year. On volatility, IBTG has been the lower-risk option at 0.12%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VGSH has performed better with a 1.85% return vs 0.91%. 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 0.07% for IBTG.
IBTG has the higher dividend yield at 3.95%, compared with 3.88% for VGSH.
IBTG tracks ICE 2026 Maturity US Treasury Index, while VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.07% for IBTG and 0.03% for VGSH.
IBTG currently has the higher Sharpe Ratio (7.90 vs 2.29), 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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