VDY.TO vs. VGSH

Last updated Jun 14, 2026

VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index ETF) and VGSH (Vanguard Short-Term Treasury ETF) are both exchange-traded funds - VDY.TO is a Dividend fund tracking the FTSE Canada High Dividend Yield Index, while VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, VDY.TO returned 14.58%/yr vs 2.60%/yr for VGSH. At a correlation of -0.04, they often move in opposite directions. VDY.TO charges 0.22%/yr vs 0.03%/yr for VGSH.

Performance

VDY.TO vs. VGSH - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) and Vanguard Short-Term Treasury ETF (VGSH). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

VDY.TO is traded in CAD, while VGSH is traded in USD. To make them comparable, the VGSH values have been converted to CAD using the latest available exchange rates.

Returns By Period

In the year-to-date period, VDY.TO achieves a 23.81% return, which is significantly higher than VGSH's 2.61% return. Over the past 10 years, VDY.TO has outperformed VGSH with an annualized return of 14.58%, while VGSH has yielded a comparatively lower 2.60% annualized return.

VDY.TO

• 1D: 0.65%
• 1M: 5.30%
• YTD: 23.81%
• 6M: 23.43%
• 1Y: 49.57%
• 3Y*: 27.42%
• 5Y*: 17.91%
• 10Y*: 14.58%

VGSH

• 1D: 0.15%
• 1M: 2.10%
• YTD: 2.61%
• 6M: 2.27%
• 1Y: 6.22%
• 3Y*: 5.81%
• 5Y*: 4.81%
• 10Y*: 2.60%

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

VDY.TO vs. VGSH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF	23.81%	29.21%	21.44%	8.41%	-0.23%	36.60%	-1.37%	21.42%	-10.09%	8.32%
VGSH Vanguard Short-Term Treasury ETF	2.61%	0.28%	12.81%	1.82%	2.23%	-0.64%	0.59%	-0.75%	10.09%	-6.74%

Correlation

The correlation between VDY.TO and VGSH is 0.02, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.02
Correlation (3Y) Calculated over the trailing 3-year period	-0.01
Correlation (5Y) Calculated over the trailing 5-year period	-0.05
Correlation (10Y) Calculated over the trailing 10-year period	-0.05
Correlation (All Time) Calculated using the full available price history since Nov 8, 2012	-0.04

Return for Risk

VDY.TO vs. VGSH — Risk / Return Rank

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

VDY.TO

VDY.TO Risk / Return Rank: 98
VDY.TO Sharpe Ratio Rank: 99
VDY.TO Sortino Ratio Rank: 98
VDY.TO Omega Ratio Rank: 98
VDY.TO Calmar Ratio Rank: 98
VDY.TO Martin Ratio Rank: 98

VGSH

VGSH Risk / Return Rank: 88
VGSH Sharpe Ratio Rank: 90
VGSH Sortino Ratio Rank: 94
VGSH Omega Ratio Rank: 92
VGSH Calmar Ratio Rank: 81
VGSH Martin Ratio Rank: 84

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.

VDY.TO vs. VGSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) 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.

	VDY.TO	VGSH	Difference
Sharpe ratio: Return per unit of total volatility	5.98	1.20	+4.78
Sortino ratio: Return per unit of downside risk	8.59	1.70	+6.89
Omega ratio: Gain probability vs. loss probability	2.21	1.21	+1.00
Calmar ratio: Return relative to maximum drawdown	15.94	1.46	+14.49
Martin ratio: Return relative to average drawdown	64.95	3.56	+61.39

VDY.TO vs. VGSH - Sharpe Ratio Comparison

The current VDY.TO Sharpe Ratio is 5.98, which is higher than the VGSH Sharpe Ratio of 1.20. The chart below compares the historical Sharpe Ratios of VDY.TO and VGSH, 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

VDY.TO vs. VGSH - Drawdown Comparison

The maximum VDY.TO drawdown since its inception was -39.21%, which is greater than VGSH's maximum drawdown of -16.61%. Use the drawdown chart below to compare losses from any high point for VDY.TO and VGSH.

Drawdown Indicators

	VDY.TO	VGSH	Difference
Max Drawdown Largest peak-to-trough decline	-39.21%	-16.61%	-22.60%
Max Drawdown (1Y) Largest decline over 1 year	-3.12%	-3.87%	+0.75%
Max Drawdown (3Y) Largest decline over 3 years	-10.38%	-5.99%	-4.39%
Max Drawdown (5Y) Largest decline over 5 years	-16.17%	-6.36%	-9.81%
Max Drawdown (10Y) Largest decline over 10 years	-39.21%	-16.61%	-22.60%
Current Drawdown Current decline from peak	0.00%	-0.11%	+0.11%
Average Drawdown Average peak-to-trough decline	-4.47%	-6.28%	+1.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.76%	1.59%	-0.83%

Volatility

VDY.TO vs. VGSH - Volatility Comparison

Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) has a higher volatility of 3.27% compared to Vanguard Short-Term Treasury ETF (VGSH) at 0.90%. This indicates that VDY.TO's price experiences larger fluctuations and is considered to be riskier than VGSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDY.TO	VGSH	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.27%	0.90%	+2.37%
Volatility (6M) Calculated over the trailing 6-month period	6.96%	3.24%	+3.72%
Volatility (1Y) Calculated over the trailing 1-year period	8.32%	4.71%	+3.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.58%	6.59%	+4.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.95%	6.84%	+9.11%

VDY.TO vs. VGSH - Expense Ratio Comparison

VDY.TO has a 0.22% 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

VDY.TO vs. VGSH - Dividend Comparison

VDY.TO's dividend yield for the trailing twelve months is around 2.83%, less than VGSH's 3.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF	2.83%	3.59%	4.37%	4.64%	4.42%	3.46%	4.59%	4.25%	4.44%	3.42%	3.25%	4.11%
VGSH Vanguard Short-Term Treasury ETF	3.87%	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

Can I hold both VDY.TO and VGSH in my portfolio?

VDY.TO and VGSH have a correlation of 0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VDY.TO or VGSH?

On fees, VGSH is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VDY.TO or VGSH?

VGSH is cheaper with a 0.03% expense ratio, compared with 0.22% for VDY.TO.

What is the main difference between VDY.TO and VGSH?

VDY.TO is categorized as Dividend, while VGSH is Government Bonds. VDY.TO tracks FTSE Canada High Dividend Yield Index, while VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index. Their fees differ too: 0.22% for VDY.TO and 0.03% for VGSH.