SHAG vs. VSDB

Last updated Jun 23, 2026

SHAG (WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF) and VSDB (Vanguard Short Duration Bond ETF Shares) are both Short-Term Bond funds. SHAG is passively managed, while VSDB is actively managed. Over the past year, SHAG returned 3.48% vs 4.75% for VSDB. Their correlation of 0.84 suggests significant overlap in exposure. SHAG charges 0.12%/yr vs 0.15%/yr for VSDB.

Performance

SHAG vs. VSDB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF (SHAG) and Vanguard Short Duration Bond ETF Shares (VSDB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SHAG achieves a 0.38% return, which is significantly lower than VSDB's 0.95% return.

SHAG

• 1D: -0.09%
• 1M: 0.19%
• YTD: 0.38%
• 6M: 0.52%
• 1Y: 3.48%
• 3Y*: 4.73%
• 5Y*: 1.62%
• 10Y*: —

VSDB

• 1D: -0.11%
• 1M: 0.30%
• YTD: 0.95%
• 6M: 1.15%
• 1Y: 4.75%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SHAG vs. VSDB - Yearly Performance Comparison

	2026 (YTD)	2025
SHAG WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF	0.38%	4.22%
VSDB Vanguard Short Duration Bond ETF Shares	0.95%	4.88%

Correlation

The correlation between SHAG and VSDB is 0.84, 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	0.84
Correlation (All Time) Calculated using the full available price history since Apr 3, 2025	0.84

The correlation between SHAG and VSDB has been stable across timeframes, ranging from 0.84 to 0.84 - a consistent structural relationship.

Return for Risk

SHAG vs. VSDB — Risk / Return Rank

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

SHAG

SHAG Risk / Return Rank: 58
SHAG Sharpe Ratio Rank: 58
SHAG Sortino Ratio Rank: 66
SHAG Omega Ratio Rank: 61
SHAG Calmar Ratio Rank: 53
SHAG Martin Ratio Rank: 52

VSDB

VSDB Risk / Return Rank: 83
VSDB Sharpe Ratio Rank: 88
VSDB Sortino Ratio Rank: 92
VSDB Omega Ratio Rank: 91
VSDB Calmar Ratio Rank: 69
VSDB Martin Ratio Rank: 78

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.

SHAG vs. VSDB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF (SHAG) and Vanguard Short Duration Bond ETF Shares (VSDB). 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.

	SHAG	VSDB	Difference
Sharpe ratio: Return per unit of total volatility	1.88	2.74	-0.85
Sortino ratio: Return per unit of downside risk	2.93	4.25	-1.33
Omega ratio: Gain probability vs. loss probability	1.36	1.56	-0.20
Calmar ratio: Return relative to maximum drawdown	2.54	3.35	-0.81
Martin ratio: Return relative to average drawdown	8.61	14.67	-6.06

SHAG vs. VSDB - Sharpe Ratio Comparison

The current SHAG Sharpe Ratio is 1.88, which is lower than the VSDB Sharpe Ratio of 2.74. The chart below compares the historical Sharpe Ratios of SHAG and VSDB, 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

SHAG vs. VSDB - Drawdown Comparison

The maximum SHAG drawdown since its inception was -9.62%, which is greater than VSDB's maximum drawdown of -1.42%. Use the drawdown chart below to compare losses from any high point for SHAG and VSDB.

Drawdown Indicators

	SHAG	VSDB	Difference
Max Drawdown Largest peak-to-trough decline	-9.62%	-1.42%	-8.20%
Max Drawdown (1Y) Largest decline over 1 year	-1.38%	-1.42%	+0.04%
Max Drawdown (3Y) Largest decline over 3 years	-1.38%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-9.62%	—	—
Current Drawdown Current decline from peak	-0.64%	-0.26%	-0.38%
Average Drawdown Average peak-to-trough decline	-1.87%	-0.19%	-1.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.41%	0.32%	+0.09%

Volatility

SHAG vs. VSDB - Volatility Comparison

WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF (SHAG) has a higher volatility of 0.62% compared to Vanguard Short Duration Bond ETF Shares (VSDB) at 0.52%. This indicates that SHAG's price experiences larger fluctuations and is considered to be riskier than VSDB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SHAG	VSDB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.62%	0.52%	+0.10%
Volatility (6M) Calculated over the trailing 6-month period	1.40%	1.39%	+0.01%
Volatility (1Y) Calculated over the trailing 1-year period	1.86%	1.75%	+0.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.76%	1.90%	+0.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.58%	1.90%	+0.68%

SHAG vs. VSDB - Expense Ratio Comparison

SHAG has a 0.12% expense ratio, which is lower than VSDB's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SHAG vs. VSDB - Dividend Comparison

SHAG's dividend yield for the trailing twelve months is around 4.28%, more than VSDB's 4.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
SHAG WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF	4.28%	4.33%	4.49%	3.04%	1.38%	0.92%	2.33%	2.71%	2.56%	0.77%
VSDB Vanguard Short Duration Bond ETF Shares	4.16%	3.30%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SHAG and VSDB in my portfolio?

SHAG and VSDB have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SHAG or VSDB?

SHAG has higher volatility (0.62%) compared to VSDB (0.52%). In terms of maximum drawdown, SHAG dropped -9.62% vs VSDB's -1.42%.

Which ETF is better, SHAG or VSDB?

On 1-year performance, VSDB leads with 4.75% vs 3.48% for SHAG. On fees, SHAG is cheaper at 0.12% per year. On volatility, VSDB has been the lower-risk option at 0.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SHAG or VSDB?

Over the 1-year period, VSDB has performed better with a 4.75% return vs 3.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SHAG or VSDB?

SHAG is cheaper with a 0.12% expense ratio, compared with 0.15% for VSDB.

Which ETF pays a higher dividend yield, SHAG or VSDB?

SHAG has the higher dividend yield at 4.28%, compared with 4.16% for VSDB.

What is the main difference between SHAG and VSDB?

They also come from different issuers: WisdomTree and Vanguard. Their fees differ too: 0.12% for SHAG and 0.15% for VSDB.

Which has better risk-adjusted returns?

VSDB currently has the higher Sharpe Ratio (2.74 vs 1.88), 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.