VESIX vs. VUSFX

Last updated Jun 23, 2026

VESIX (Vanguard European Stock Index Fund Institutional Shares) and VUSFX (Vanguard Ultra-Short-Term Bond Fund Admiral Shares) are both mutual funds - VESIX is a Europe Equities fund managed by Vanguard, while VUSFX is a Total Bond Market fund managed by Vanguard. Over the past 10 years, VESIX returned 9.63%/yr vs 2.71%/yr for VUSFX. At a 0.12 correlation, their price movements are largely independent. VESIX charges 0.08%/yr vs 0.10%/yr for VUSFX.

Performance

VESIX vs. VUSFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard European Stock Index Fund Institutional Shares (VESIX) and Vanguard Ultra-Short-Term Bond Fund Admiral Shares (VUSFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VESIX achieves a 7.46% return, which is significantly higher than VUSFX's 1.47% return. Over the past 10 years, VESIX has outperformed VUSFX with an annualized return of 9.63%, while VUSFX has yielded a comparatively lower 2.71% annualized return.

VESIX

• 1D: 0.30%
• 1M: 0.94%
• YTD: 7.46%
• 6M: 7.99%
• 1Y: 21.44%
• 3Y*: 15.92%
• 5Y*: 9.23%
• 10Y*: 9.63%

VUSFX

• 1D: 0.00%
• 1M: 0.21%
• YTD: 1.47%
• 6M: 1.57%
• 1Y: 4.31%
• 3Y*: 5.42%
• 5Y*: 3.52%
• 10Y*: 2.71%

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

VESIX vs. VUSFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VESIX Vanguard European Stock Index Fund Institutional Shares	7.46%	35.43%	2.02%	20.03%	-16.07%	16.31%	6.46%	24.24%	-14.78%	27.05%
VUSFX Vanguard Ultra-Short-Term Bond Fund Admiral Shares	1.47%	5.11%	6.11%	5.53%	-0.38%	0.08%	2.10%	3.39%	2.10%	1.37%

Correlation

The correlation between VESIX and VUSFX is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.26
Correlation (5Y) Calculated over the trailing 5-year period	0.22
Correlation (10Y) Calculated over the trailing 10-year period	0.12
Correlation (All Time) Calculated using the full available price history since Jan 4, 2016	0.12

Over the past year, VESIX and VUSFX have become more correlated (0.35) than their long-term average of 0.12, meaning their price movements have been converging.

Return for Risk

VESIX vs. VUSFX — Risk / Return Rank

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

VESIX

VESIX Risk / Return Rank: 26
VESIX Sharpe Ratio Rank: 26
VESIX Sortino Ratio Rank: 26
VESIX Omega Ratio Rank: 25
VESIX Calmar Ratio Rank: 26
VESIX Martin Ratio Rank: 30

VUSFX

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

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.

VESIX vs. VUSFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard European Stock Index Fund Institutional Shares (VESIX) and Vanguard Ultra-Short-Term Bond Fund Admiral Shares (VUSFX). 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.

	VESIX	VUSFX	Difference
Sharpe ratio: Return per unit of total volatility	1.36	7.24	-5.88
Sortino ratio: Return per unit of downside risk	1.97	14.04	-12.07
Omega ratio: Gain probability vs. loss probability	1.24	4.29	-3.05
Calmar ratio: Return relative to maximum drawdown	1.76	17.57	-15.81
Martin ratio: Return relative to average drawdown	6.51	102.50	-95.99

VESIX vs. VUSFX - Sharpe Ratio Comparison

The current VESIX Sharpe Ratio is 1.36, which is lower than the VUSFX Sharpe Ratio of 7.24. The chart below compares the historical Sharpe Ratios of VESIX and VUSFX, 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

VESIX vs. VUSFX - Drawdown Comparison

The maximum VESIX drawdown since its inception was -63.25%, which is greater than VUSFX's maximum drawdown of -1.71%. Use the drawdown chart below to compare losses from any high point for VESIX and VUSFX.

Drawdown Indicators

	VESIX	VUSFX	Difference
Max Drawdown Largest peak-to-trough decline	-63.25%	-1.71%	-61.54%
Max Drawdown (1Y) Largest decline over 1 year	-11.96%	-0.25%	-11.71%
Max Drawdown (3Y) Largest decline over 3 years	-13.94%	-0.35%	-13.59%
Max Drawdown (5Y) Largest decline over 5 years	-32.68%	-1.71%	-30.97%
Max Drawdown (10Y) Largest decline over 10 years	-36.85%	-1.71%	-35.14%
Current Drawdown Current decline from peak	-0.81%	-0.10%	-0.71%
Average Drawdown Average peak-to-trough decline	-15.20%	-0.15%	-15.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.24%	0.04%	+3.20%

Volatility

VESIX vs. VUSFX - Volatility Comparison

Vanguard European Stock Index Fund Institutional Shares (VESIX) has a higher volatility of 5.02% compared to Vanguard Ultra-Short-Term Bond Fund Admiral Shares (VUSFX) at 0.19%. This indicates that VESIX's price experiences larger fluctuations and is considered to be riskier than VUSFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VESIX	VUSFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.02%	0.19%	+4.83%
Volatility (6M) Calculated over the trailing 6-month period	13.08%	0.43%	+12.65%
Volatility (1Y) Calculated over the trailing 1-year period	15.56%	0.60%	+14.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.45%	0.81%	+16.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.21%	0.68%	+17.53%

VESIX vs. VUSFX - Expense Ratio Comparison

VESIX has a 0.08% expense ratio, which is lower than VUSFX's 0.10% 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

VESIX vs. VUSFX - Dividend Comparison

VESIX's dividend yield for the trailing twelve months is around 2.91%, less than VUSFX's 4.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VESIX Vanguard European Stock Index Fund Institutional Shares	2.91%	2.86%	3.60%	3.15%	3.25%	3.04%	2.10%	3.28%	3.95%	2.72%	3.54%	3.27%
VUSFX Vanguard Ultra-Short-Term Bond Fund Admiral Shares	4.53%	4.73%	5.52%	4.15%	1.38%	0.53%	1.62%	2.68%	2.23%	1.52%	1.07%	0.00%

Frequently Asked Questions

Can I hold both VESIX and VUSFX in my portfolio?

VESIX and VUSFX have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VESIX or VUSFX?

VESIX has higher volatility (5.02%) compared to VUSFX (0.19%). In terms of maximum drawdown, VESIX dropped -63.25% vs VUSFX's -1.71%.

Which has better risk-adjusted returns?

VUSFX currently has the higher Sharpe Ratio (7.24 vs 1.36), 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.