UTRE vs. VGUS

Last updated Aug 4, 2026

UTRE (US Treasury 3 Year Note ETF) and VGUS (Vanguard Ultra-Short Treasury ETF) are both exchange-traded funds - UTRE is a Government Bonds fund tracking the ICE BofA Current 3-Year US Treasury Index - Benchmark TR Gross, while VGUS is a Ultrashort Bond fund tracking the Bloomberg Short Treasury Index. Both are passively managed. Over the past year, UTRE returned 1.76% vs 3.78% for VGUS. Their 0.24 correlation means their historical movements had little consistent relationship. UTRE charges 0.15%/yr vs 0.07%/yr for VGUS.

Performance

UTRE vs. VGUS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in US Treasury 3 Year Note ETF (UTRE) and Vanguard Ultra-Short Treasury ETF (VGUS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, UTRE achieves a 0.10% return, which is significantly lower than VGUS's 2.04% return.

UTRE

• 1D: 0.06%
• 1M: -0.14%
• 6M: 0.07%
• YTD: 0.10%
• 1Y: 1.76%
• 3Y*: 3.81%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.29%

VGUS

• 1D: 0.02%
• 1M: 0.29%
• 6M: 1.73%
• YTD: 2.04%
• 1Y: 3.78%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.97%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
UTRE US Treasury 3 Year Note ETF	$202.14K	$202.39K	$275.66K
VGUS Vanguard Ultra-Short Treasury ETF	$6.38M	$7.76M	$10.61M

UTRE vs. VGUS - Yearly Performance Comparison

	2026 (YTD)	2025
UTRE US Treasury 3 Year Note ETF	0.10%	5.31%
VGUS Vanguard Ultra-Short Treasury ETF	2.04%	3.78%

Correlation

The correlation between UTRE and VGUS is 0.20, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.20
Correlation (All Time) Calculated using the full available price history since Feb 11, 2025	0.24

Return for Risk

UTRE vs. VGUS — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

UTRE

UTRE Risk / Return Rank: 33
UTRE Sharpe Ratio Rank: 35
UTRE Sortino Ratio Rank: 34
UTRE Omega Ratio Rank: 32
UTRE Calmar Ratio Rank: 34
UTRE Martin Ratio Rank: 31

VGUS

VGUS Risk / Return Rank: 100
VGUS Sharpe Ratio Rank: 100
VGUS Sortino Ratio Rank: 100
VGUS Omega Ratio Rank: 100
VGUS Calmar Ratio Rank: 99
VGUS Martin Ratio Rank: 100

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

UTRE vs. VGUS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for US Treasury 3 Year Note ETF (UTRE) and Vanguard Ultra-Short Treasury ETF (VGUS). 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.

	UTRE	VGUS	Difference
Sharpe ratio: Return per unit of total volatility	0.92	13.08	-12.17
Sortino ratio: Return per unit of downside risk	1.33	36.76	-35.43
Omega ratio: Gain probability vs. loss probability	1.16	11.37	-10.21
Calmar ratio: Return relative to maximum drawdown	1.23	52.18	-50.95
Martin ratio: Return relative to average drawdown	2.88	414.28	-411.40

UTRE vs. VGUS - Sharpe Ratio Comparison

The current UTRE Sharpe Ratio is 0.92, which is lower than the VGUS Sharpe Ratio of 13.08. The chart below compares the historical Sharpe Ratios of UTRE and VGUS, 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

UTRE vs. VGUS - Drawdown Comparison

The maximum UTRE drawdown since its inception was -2.80%, which is greater than VGUS's maximum drawdown of -0.07%. Use the drawdown chart below to compare losses from any high point for UTRE and VGUS.

Drawdown Indicators

	UTRE	VGUS	Difference
Max Drawdown Largest peak-to-trough decline	-2.80%	-0.07%	-2.73%
Max Drawdown (1Y) Largest decline over 1 year	-1.44%	-0.07%	-1.37%
Max Drawdown (3Y) Largest decline over 3 years	-1.86%	—	—
Current Drawdown Current decline from peak	-0.89%	0.00%	-0.89%
Average Drawdown Average peak-to-trough decline	-0.78%	0.00%	-0.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.61%	0.01%	+0.60%

Volatility

UTRE vs. VGUS - Volatility Comparison

US Treasury 3 Year Note ETF (UTRE) has a higher volatility of 0.51% compared to Vanguard Ultra-Short Treasury ETF (VGUS) at 0.05%. This indicates that UTRE's price experiences larger fluctuations and is considered to be riskier than VGUS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	UTRE	VGUS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.51%	0.05%	+0.46%
Volatility (6M) Calculated over the trailing 6-month period	1.57%	0.18%	+1.39%
Volatility (1Y) Calculated over the trailing 1-year period	1.93%	0.29%	+1.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.68%	0.33%	+2.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.68%	0.33%	+2.35%

UTRE vs. VGUS - Expense Ratio Comparison

UTRE has a 0.15% expense ratio, which is higher than VGUS's 0.07% 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

UTRE vs. VGUS - Dividend Comparison

UTRE's dividend yield for the trailing twelve months is around 3.52%, less than VGUS's 3.60% yield.

Position	TTM	2025	2024	2023
UTRE US Treasury 3 Year Note ETF	3.52%	3.60%	4.01%	3.14%
VGUS Vanguard Ultra-Short Treasury ETF	3.60%	3.12%	0.00%	0.00%

Frequently Asked Questions

Can I hold both UTRE and VGUS in my portfolio?

UTRE and VGUS have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, UTRE or VGUS?

UTRE has higher volatility (0.51%) compared to VGUS (0.05%). In terms of maximum drawdown, UTRE dropped -2.80% vs VGUS's -0.07%.

Which ETF is better, UTRE or VGUS?

On 1-year performance, VGUS leads with 3.78% vs 1.76% for UTRE. On fees, VGUS is cheaper at 0.07% per year. On volatility, VGUS has been the lower-risk option at 0.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, UTRE or VGUS?

Over the 1-year period, VGUS has performed better with a 3.78% return vs 1.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UTRE or VGUS?

VGUS is cheaper with a 0.07% expense ratio, compared with 0.15% for UTRE.

Which ETF pays a higher dividend yield, UTRE or VGUS?

VGUS has the higher dividend yield at 3.60%, compared with 3.52% for UTRE.

What is the main difference between UTRE and VGUS?

UTRE is categorized as Government Bonds, while VGUS is Ultrashort Bond. UTRE tracks ICE BofA Current 3-Year US Treasury Index - Benchmark TR Gross, while VGUS tracks Bloomberg Short Treasury Index. They also come from different issuers: US Benchmark Series and Vanguard. Their fees differ too: 0.15% for UTRE and 0.07% for VGUS.

Which has better risk-adjusted returns?

VGUS currently has the higher Sharpe Ratio (13.08 vs 0.92), 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.