SBSTX vs. VIITX

Last updated Jun 25, 2026

SBSTX (Western Asset Short-Term Bond Fund) and VIITX (Vanguard Institutional Intermediate-Term Bond Fund) are both Short-Term Bond funds. Over the past 10 years, SBSTX returned 1.89%/yr vs 2.09%/yr for VIITX. A 0.53 correlation means they provide meaningful diversification when combined. SBSTX charges 0.71%/yr vs 0.02%/yr for VIITX.

Performance

SBSTX vs. VIITX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Western Asset Short-Term Bond Fund (SBSTX) and Vanguard Institutional Intermediate-Term Bond Fund (VIITX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SBSTX achieves a 0.32% return, which is significantly lower than VIITX's 0.56% return. Over the past 10 years, SBSTX has underperformed VIITX with an annualized return of 1.89%, while VIITX has yielded a comparatively higher 2.09% annualized return.

SBSTX

• 1D: 0.27%
• 1M: 0.36%
• YTD: 0.32%
• 6M: 0.69%
• 1Y: 3.09%
• 3Y*: 4.08%
• 5Y*: 1.48%
• 10Y*: 1.89%

VIITX

• 1D: 0.09%
• 1M: 0.48%
• YTD: 0.56%
• 6M: 0.61%
• 1Y: 4.09%
• 3Y*: 4.93%
• 5Y*: 1.51%
• 10Y*: 2.09%

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

SBSTX vs. VIITX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SBSTX Western Asset Short-Term Bond Fund	0.32%	5.38%	3.56%	4.32%	-5.34%	-0.81%	3.73%	4.48%	1.29%	2.23%
VIITX Vanguard Institutional Intermediate-Term Bond Fund	0.56%	7.23%	3.67%	5.31%	-7.99%	-1.02%	6.17%	6.44%	0.87%	2.00%

Correlation

The correlation between SBSTX and VIITX is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (10Y) Calculated over the trailing 10-year period	0.54
Correlation (All Time) Calculated using the full available price history since Nov 3, 2015	0.53

The correlation between SBSTX and VIITX has been stable across timeframes, ranging from 0.53 to 0.63 - a consistent structural relationship.

Return for Risk

SBSTX vs. VIITX — Risk / Return Rank

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

SBSTX

SBSTX Risk / Return Rank: 44
SBSTX Sharpe Ratio Rank: 27
SBSTX Sortino Ratio Rank: 33
SBSTX Omega Ratio Rank: 63
SBSTX Calmar Ratio Rank: 47
SBSTX Martin Ratio Rank: 52

VIITX

VIITX Risk / Return Rank: 43
VIITX Sharpe Ratio Rank: 44
VIITX Sortino Ratio Rank: 48
VIITX Omega Ratio Rank: 45
VIITX Calmar Ratio Rank: 42
VIITX Martin Ratio Rank: 34

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.

SBSTX vs. VIITX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Western Asset Short-Term Bond Fund (SBSTX) and Vanguard Institutional Intermediate-Term Bond Fund (VIITX). 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.

	SBSTX	VIITX	Difference
Sharpe ratio: Return per unit of total volatility	1.26	1.75	-0.50
Sortino ratio: Return per unit of downside risk	2.04	2.59	-0.55
Omega ratio: Gain probability vs. loss probability	1.37	1.33	+0.04
Calmar ratio: Return relative to maximum drawdown	2.31	2.30	+0.01
Martin ratio: Return relative to average drawdown	9.33	7.03	+2.30

SBSTX vs. VIITX - Sharpe Ratio Comparison

The current SBSTX Sharpe Ratio is 1.26, which is comparable to the VIITX Sharpe Ratio of 1.75. The chart below compares the historical Sharpe Ratios of SBSTX and VIITX, 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

SBSTX vs. VIITX - Drawdown Comparison

The maximum SBSTX drawdown since its inception was -16.30%, which is greater than VIITX's maximum drawdown of -11.86%. Use the drawdown chart below to compare losses from any high point for SBSTX and VIITX.

Drawdown Indicators

	SBSTX	VIITX	Difference
Max Drawdown Largest peak-to-trough decline	-16.30%	-11.86%	-4.44%
Max Drawdown (1Y) Largest decline over 1 year	-1.34%	-1.89%	+0.55%
Max Drawdown (3Y) Largest decline over 3 years	-1.34%	-3.32%	+1.98%
Max Drawdown (5Y) Largest decline over 5 years	-8.15%	-11.86%	+3.71%
Max Drawdown (10Y) Largest decline over 10 years	-8.19%	-11.86%	+3.67%
Current Drawdown Current decline from peak	-0.29%	-0.87%	+0.58%
Average Drawdown Average peak-to-trough decline	-1.18%	-2.12%	+0.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.33%	0.62%	-0.29%

Volatility

SBSTX vs. VIITX - Volatility Comparison

Western Asset Short-Term Bond Fund (SBSTX) has a higher volatility of 0.95% compared to Vanguard Institutional Intermediate-Term Bond Fund (VIITX) at 0.82%. This indicates that SBSTX's price experiences larger fluctuations and is considered to be riskier than VIITX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SBSTX	VIITX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.95%	0.82%	+0.13%
Volatility (6M) Calculated over the trailing 6-month period	2.00%	1.92%	+0.08%
Volatility (1Y) Calculated over the trailing 1-year period	2.48%	2.49%	-0.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.74%	3.86%	-1.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.45%	3.07%	-0.62%

SBSTX vs. VIITX - Expense Ratio Comparison

SBSTX has a 0.71% expense ratio, which is higher than VIITX's 0.02% expense ratio.

Dividends

SBSTX vs. VIITX - Dividend Comparison

SBSTX's dividend yield for the trailing twelve months is around 3.88%, less than VIITX's 4.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SBSTX Western Asset Short-Term Bond Fund	3.88%	4.14%	3.22%	2.82%	1.75%	1.24%	2.11%	2.56%	2.33%	1.69%	1.57%	1.28%
VIITX Vanguard Institutional Intermediate-Term Bond Fund	4.57%	4.51%	4.71%	3.61%	2.14%	2.20%	2.87%	2.69%	2.62%	2.04%	2.95%	0.57%

Frequently Asked Questions

Can I hold both SBSTX and VIITX in my portfolio?

SBSTX and VIITX have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SBSTX or VIITX?

SBSTX has higher volatility (0.95%) compared to VIITX (0.82%). In terms of maximum drawdown, SBSTX dropped -16.30% vs VIITX's -11.86%.

Which has better risk-adjusted returns?

VIITX currently has the higher Sharpe Ratio (1.75 vs 1.26), 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.