VFISX vs. VWSTX

Last updated Jun 3, 2026

VFISX (Vanguard Short-Term Treasury Fund Investor Shares) and VWSTX (Vanguard Short-Term Tax-Exempt Fund Investor Shares) are both mutual funds - VFISX is a Government Bonds fund managed by Vanguard, while VWSTX is a Municipal Bonds fund managed by Vanguard. Over the past 10 years, VFISX returned 1.61%/yr vs 1.95%/yr for VWSTX. At a 0.39 correlation, their price movements are largely independent. VFISX charges 0.20%/yr vs 0.17%/yr for VWSTX.

Performance

VFISX vs. VWSTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Treasury Fund Investor Shares (VFISX) and Vanguard Short-Term Tax-Exempt Fund Investor Shares (VWSTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFISX achieves a 0.50% return, which is significantly lower than VWSTX's 1.10% return. Over the past 10 years, VFISX has underperformed VWSTX with an annualized return of 1.61%, while VWSTX has yielded a comparatively higher 1.95% annualized return.

VFISX

• 1D: 0.00%
• 1M: 0.01%
• YTD: 0.50%
• 6M: 0.80%
• 1Y: 3.48%
• 3Y*: 4.05%
• 5Y*: 1.43%
• 10Y*: 1.61%

VWSTX

• 1D: 0.00%
• 1M: 0.25%
• YTD: 1.10%
• 6M: 1.50%
• 1Y: 3.68%
• 3Y*: 4.13%
• 5Y*: 2.49%
• 10Y*: 1.95%

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

VFISX vs. VWSTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFISX Vanguard Short-Term Treasury Fund Investor Shares	0.50%	5.36%	3.75%	3.54%	-4.71%	-0.88%	3.95%	3.60%	1.36%	0.38%
VWSTX Vanguard Short-Term Tax-Exempt Fund Investor Shares	1.10%	4.79%	3.68%	3.87%	-0.81%	0.17%	1.82%	2.50%	1.59%	1.00%

Correlation

The correlation between VFISX and VWSTX is 0.50, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.47
Correlation (5Y) Calculated over the trailing 5-year period	0.41
Correlation (10Y) Calculated over the trailing 10-year period	0.35
Correlation (All Time) Calculated using the full available price history since Oct 29, 1991	0.39

The correlation between VFISX and VWSTX shifts across timeframes, from 0.35 (10 years) to 0.50 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VFISX vs. VWSTX — Risk / Return Rank

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

VFISX

VFISX Risk / Return Rank: 42
VFISX Sharpe Ratio Rank: 32
VFISX Sortino Ratio Rank: 46
VFISX Omega Ratio Rank: 40
VFISX Calmar Ratio Rank: 50
VFISX Martin Ratio Rank: 42

VWSTX

VWSTX Risk / Return Rank: 97
VWSTX Sharpe Ratio Rank: 96
VWSTX Sortino Ratio Rank: 99
VWSTX Omega Ratio Rank: 99
VWSTX Calmar Ratio Rank: 95
VWSTX Martin Ratio Rank: 97

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.

VFISX vs. VWSTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury Fund Investor Shares (VFISX) and Vanguard Short-Term Tax-Exempt Fund Investor Shares (VWSTX). 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.

	VFISX	VWSTX	Difference
Sharpe ratio Return per unit of total volatility	1.65	3.38	-1.74
Sortino ratio Return per unit of downside risk	2.85	8.40	-5.55
Omega ratio Gain probability vs. loss probability	1.34	2.64	-1.30
Calmar ratio Return relative to maximum drawdown	2.73	5.72	-2.99
Martin ratio Return relative to average drawdown	9.17	25.32	-16.14
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFISX vs. VWSTX - Sharpe Ratio Comparison

The current VFISX Sharpe Ratio is 1.65, which is lower than the VWSTX Sharpe Ratio of 3.38. The chart below compares the historical Sharpe Ratios of VFISX and VWSTX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VFISX	VWSTX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.65	3.38	-1.74
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	2.07	-1.53
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.77	1.76	-0.99
Sharpe Ratio (All Time) Calculated using the full available price history	1.53	2.03	-0.50

Drawdowns

VFISX vs. VWSTX - Drawdown Comparison

The maximum VFISX drawdown since its inception was -6.86%, which is greater than VWSTX's maximum drawdown of -3.09%. Use the drawdown chart below to compare losses from any high point for VFISX and VWSTX.

Drawdown Indicators

	VFISX	VWSTX	Difference
Max Drawdown Largest peak-to-trough decline	-6.86%	-3.09%	-3.77%
Max Drawdown (1Y) Largest decline over 1 year	-1.40%	-0.69%	-0.71%
Max Drawdown (3Y) Largest decline over 3 years	-1.40%	-1.01%	-0.39%
Max Drawdown (5Y) Largest decline over 5 years	-6.86%	-2.32%	-4.54%
Max Drawdown (10Y) Largest decline over 10 years	-6.86%	-3.08%	-3.78%
Current Drawdown Current decline from peak	-0.49%	0.00%	-0.49%
Average Drawdown Average peak-to-trough decline	-0.65%	-0.32%	-0.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.42%	0.16%	+0.26%

Volatility

VFISX vs. VWSTX - Volatility Comparison

Vanguard Short-Term Treasury Fund Investor Shares (VFISX) has a higher volatility of 0.60% compared to Vanguard Short-Term Tax-Exempt Fund Investor Shares (VWSTX) at 0.38%. This indicates that VFISX's price experiences larger fluctuations and is considered to be riskier than VWSTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFISX	VWSTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.60%	0.38%	+0.22%
Volatility (6M) Calculated over the trailing 6-month period	1.52%	0.85%	+0.67%
Volatility (1Y) Calculated over the trailing 1-year period	2.06%	1.09%	+0.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.67%	1.21%	+1.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.11%	1.11%	+1.00%

VFISX vs. VWSTX - Expense Ratio Comparison

VFISX has a 0.20% expense ratio, which is higher than VWSTX's 0.17% 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

VFISX vs. VWSTX - Dividend Comparison

VFISX's dividend yield for the trailing twelve months is around 3.74%, more than VWSTX's 3.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFISX Vanguard Short-Term Treasury Fund Investor Shares	3.74%	3.89%	4.38%	3.95%	1.93%	0.52%	2.20%	2.39%	2.10%	1.15%	1.18%	0.83%
VWSTX Vanguard Short-Term Tax-Exempt Fund Investor Shares	3.04%	3.90%	3.73%	2.42%	1.16%	0.61%	1.17%	1.71%	1.45%	1.06%	0.87%	0.70%

Frequently Asked Questions

Can I hold both VFISX and VWSTX in my portfolio?

VFISX and VWSTX have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFISX or VWSTX?

VFISX has higher volatility (0.60%) compared to VWSTX (0.38%). In terms of maximum drawdown, VFISX dropped -6.86% vs VWSTX's -3.09%.

Which has better risk-adjusted returns?

VWSTX currently has the higher Sharpe Ratio (3.38 vs 1.65), 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.