TAGG vs. VTG

Last updated Jul 12, 2026

TAGG (T. Rowe Price QM U.S. Bond ETF) and VTG (Vanguard Total Treasury ETF) are both exchange-traded funds - TAGG is a Intermediate Core Bond fund actively managed by T. Rowe Price, while VTG is a Government Bonds fund tracking the Bloomberg U.S. Treasury Total Return Unhedged USD Index. TAGG is actively managed, while VTG is passively managed. Over the past year, TAGG returned 4.31% vs 3.10% for VTG. Their correlation of 0.93 suggests significant overlap in exposure. TAGG charges 0.08%/yr vs 0.03%/yr for VTG.

Performance

TAGG vs. VTG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price QM U.S. Bond ETF (TAGG) and Vanguard Total Treasury ETF (VTG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAGG achieves a 0.25% return, which is significantly higher than VTG's -0.15% return.

TAGG

• 1D: -0.04%
• 1M: -0.29%
• 6M: 0.02%
• YTD: 0.25%
• 1Y: 4.31%
• 3Y*: 4.40%
• 5Y*: —
• 10Y*: —

VTG

• 1D: -0.07%
• 1M: -0.25%
• 6M: -0.29%
• YTD: -0.15%
• 1Y: 3.10%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

TAGG vs. VTG - Yearly Performance Comparison

	2026 (YTD)	2025
TAGG T. Rowe Price QM U.S. Bond ETF	0.25%	3.90%
VTG Vanguard Total Treasury ETF	-0.15%	3.07%

Correlation

The correlation between TAGG and VTG is 0.93, 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	0.93
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025	0.93

The correlation between TAGG and VTG has been stable across timeframes, ranging from 0.93 to 0.93 - a consistent structural relationship.

Return for Risk

TAGG vs. VTG — Risk / Return Rank

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

TAGG

TAGG Risk / Return Rank: 32
TAGG Sharpe Ratio Rank: 34
TAGG Sortino Ratio Rank: 34
TAGG Omega Ratio Rank: 33
TAGG Calmar Ratio Rank: 29
TAGG Martin Ratio Rank: 28

VTG

VTG Risk / Return Rank: 24
VTG Sharpe Ratio Rank: 25
VTG Sortino Ratio Rank: 25
VTG Omega Ratio Rank: 23
VTG Calmar Ratio Rank: 24
VTG Martin Ratio Rank: 24

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.

TAGG vs. VTG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price QM U.S. Bond ETF (TAGG) and Vanguard Total Treasury ETF (VTG). 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.

	TAGG	VTG	Difference
Sharpe ratio: Return per unit of total volatility	1.03	0.77	+0.26
Sortino ratio: Return per unit of downside risk	1.52	1.15	+0.36
Omega ratio: Gain probability vs. loss probability	1.19	1.13	+0.05
Calmar ratio: Return relative to maximum drawdown	1.20	0.94	+0.26
Martin ratio: Return relative to average drawdown	3.20	2.48	+0.72

TAGG vs. VTG - Sharpe Ratio Comparison

The current TAGG Sharpe Ratio is 1.03, which is higher than the VTG Sharpe Ratio of 0.77. The chart below compares the historical Sharpe Ratios of TAGG and VTG, 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

TAGG vs. VTG - Drawdown Comparison

The maximum TAGG drawdown since its inception was -17.26%, which is greater than VTG's maximum drawdown of -2.89%. Use the drawdown chart below to compare losses from any high point for TAGG and VTG.

Drawdown Indicators

	TAGG	VTG	Difference
Max Drawdown Largest peak-to-trough decline	-17.26%	-2.89%	-14.37%
Max Drawdown (1Y) Largest decline over 1 year	-3.19%	-2.89%	-0.30%
Max Drawdown (3Y) Largest decline over 3 years	-6.26%	—	—
Current Drawdown Current decline from peak	-1.96%	-1.94%	-0.02%
Average Drawdown Average peak-to-trough decline	-6.76%	-0.82%	-5.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.19%	1.09%	+0.10%

Volatility

TAGG vs. VTG - Volatility Comparison

T. Rowe Price QM U.S. Bond ETF (TAGG) has a higher volatility of 1.20% compared to Vanguard Total Treasury ETF (VTG) at 1.10%. This indicates that TAGG's price experiences larger fluctuations and is considered to be riskier than VTG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAGG	VTG	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.20%	1.10%	+0.10%
Volatility (6M) Calculated over the trailing 6-month period	2.86%	2.64%	+0.22%
Volatility (1Y) Calculated over the trailing 1-year period	3.70%	3.53%	+0.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.48%	3.53%	+2.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.48%	3.53%	+2.95%

TAGG vs. VTG - Expense Ratio Comparison

TAGG has a 0.08% expense ratio, which is higher than VTG'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

TAGG vs. VTG - Dividend Comparison

TAGG's dividend yield for the trailing twelve months is around 4.54%, more than VTG's 3.54% yield.

Position	TTM	2025	2024	2023	2022	2021
TAGG T. Rowe Price QM U.S. Bond ETF	4.54%	4.36%	4.36%	3.48%	3.67%	0.33%
VTG Vanguard Total Treasury ETF	3.54%	1.65%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TAGG and VTG in my portfolio?

With a correlation of 0.93, TAGG and VTG move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, TAGG or VTG?

TAGG has higher volatility (1.20%) compared to VTG (1.10%). In terms of maximum drawdown, TAGG dropped -17.26% vs VTG's -2.89%.

Which ETF is better, TAGG or VTG?

On 1-year performance, TAGG leads with 4.31% vs 3.10% for VTG. On fees, VTG is cheaper at 0.03% per year. On volatility, VTG has been the lower-risk option at 1.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAGG or VTG?

Over the 1-year period, TAGG has performed better with a 4.31% return vs 3.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAGG or VTG?

VTG is cheaper with a 0.03% expense ratio, compared with 0.08% for TAGG.

Which ETF pays a higher dividend yield, TAGG or VTG?

TAGG has the higher dividend yield at 4.54%, compared with 3.54% for VTG.

What is the main difference between TAGG and VTG?

TAGG is categorized as Intermediate Core Bond, while VTG is Government Bonds. They also come from different issuers: T. Rowe Price and Vanguard. Their fees differ too: 0.08% for TAGG and 0.03% for VTG.

Which has better risk-adjusted returns?

TAGG currently has the higher Sharpe Ratio (1.03 vs 0.77), 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.