VFSAX vs. VSBSX

Last updated Jul 15, 2026

VFSAX (Vanguard FTSE All-World ex-US Small-Cap Index Fund Admiral Shares) and VSBSX (Vanguard Short-Term Treasury Index Fund Admiral Shares) are both mutual funds - VFSAX is a Foreign Small & Mid Cap Equities fund managed by Vanguard, while VSBSX is a Government Bonds fund tracking the Spliced Bloomberg U.S. Treasury 1-3 Year Index. Over the past 5 years, VFSAX returned 5.08%/yr vs 1.89%/yr for VSBSX. At a 0.07 correlation, their price movements are largely independent. VFSAX charges 0.16%/yr vs 0.06%/yr for VSBSX.

Performance

VFSAX vs. VSBSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE All-World ex-US Small-Cap Index Fund Admiral Shares (VFSAX) and Vanguard Short-Term Treasury Index Fund Admiral Shares (VSBSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFSAX achieves a 6.29% return, which is significantly higher than VSBSX's 0.55% return.

VFSAX

• 1D: -1.53%
• 1M: -3.13%
• 6M: 3.03%
• YTD: 6.29%
• 1Y: 15.87%
• 3Y*: 13.47%
• 5Y*: 5.08%
• 10Y*: —

VSBSX

• 1D: -0.10%
• 1M: -0.01%
• 6M: 0.50%
• YTD: 0.55%
• 1Y: 2.95%
• 3Y*: 4.27%
• 5Y*: 1.89%
• 10Y*: 1.73%

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

VFSAX vs. VSBSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
VFSAX Vanguard FTSE All-World ex-US Small-Cap Index Fund Admiral Shares	6.29%	29.89%	2.58%	15.13%	-21.30%	12.68%	11.90%	13.47%
VSBSX Vanguard Short-Term Treasury Index Fund Admiral Shares	0.55%	5.08%	4.39%	4.23%	-3.87%	-0.69%	3.09%	3.30%

Correlation

The correlation between VFSAX and VSBSX is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.22
Correlation (5Y) Calculated over the trailing 5-year period	0.18
Correlation (All Time) Calculated using the full available price history since Feb 7, 2019	0.07

Over the past year, VFSAX and VSBSX have become more correlated (0.30) than their long-term average of 0.07, meaning their price movements have been converging.

Return for Risk

VFSAX vs. VSBSX — Risk / Return Rank

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

VFSAX

VFSAX Risk / Return Rank: 27
VFSAX Sharpe Ratio Rank: 28
VFSAX Sortino Ratio Rank: 26
VFSAX Omega Ratio Rank: 28
VFSAX Calmar Ratio Rank: 25
VFSAX Martin Ratio Rank: 28

VSBSX

VSBSX Risk / Return Rank: 88
VSBSX Sharpe Ratio Rank: 86
VSBSX Sortino Ratio Rank: 89
VSBSX Omega Ratio Rank: 86
VSBSX Calmar Ratio Rank: 89
VSBSX Martin Ratio Rank: 92

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.

VFSAX vs. VSBSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US Small-Cap Index Fund Admiral Shares (VFSAX) and Vanguard Short-Term Treasury Index Fund Admiral Shares (VSBSX). 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.

	VFSAX	VSBSX	Difference
Sharpe ratio: Return per unit of total volatility	1.12	2.27	-1.16
Sortino ratio: Return per unit of downside risk	1.59	3.59	-2.01
Omega ratio: Gain probability vs. loss probability	1.21	1.47	-0.26
Calmar ratio: Return relative to maximum drawdown	1.41	3.55	-2.14
Martin ratio: Return relative to average drawdown	4.92	14.25	-9.33

VFSAX vs. VSBSX - Sharpe Ratio Comparison

The current VFSAX Sharpe Ratio is 1.12, which is lower than the VSBSX Sharpe Ratio of 2.27. The chart below compares the historical Sharpe Ratios of VFSAX and VSBSX, 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

VFSAX vs. VSBSX - Drawdown Comparison

The maximum VFSAX drawdown since its inception was -39.86%, which is greater than VSBSX's maximum drawdown of -5.77%. Use the drawdown chart below to compare losses from any high point for VFSAX and VSBSX.

Drawdown Indicators

	VFSAX	VSBSX	Difference
Max Drawdown Largest peak-to-trough decline	-39.86%	-5.77%	-34.09%
Max Drawdown (1Y) Largest decline over 1 year	-11.48%	-0.84%	-10.64%
Max Drawdown (3Y) Largest decline over 3 years	-14.73%	-0.84%	-13.89%
Max Drawdown (5Y) Largest decline over 5 years	-33.81%	-5.77%	-28.04%
Max Drawdown (10Y) Largest decline over 10 years	—	-5.77%	—
Current Drawdown Current decline from peak	-5.89%	-0.21%	-5.68%
Average Drawdown Average peak-to-trough decline	-9.17%	-0.59%	-8.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.28%	0.21%	+3.07%

Volatility

VFSAX vs. VSBSX - Volatility Comparison

Vanguard FTSE All-World ex-US Small-Cap Index Fund Admiral Shares (VFSAX) has a higher volatility of 5.59% compared to Vanguard Short-Term Treasury Index Fund Admiral Shares (VSBSX) at 0.49%. This indicates that VFSAX's price experiences larger fluctuations and is considered to be riskier than VSBSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFSAX	VSBSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.59%	0.49%	+5.10%
Volatility (6M) Calculated over the trailing 6-month period	12.75%	0.97%	+11.78%
Volatility (1Y) Calculated over the trailing 1-year period	14.51%	1.31%	+13.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.25%	1.96%	+13.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.06%	1.54%	+15.52%

VFSAX vs. VSBSX - Expense Ratio Comparison

VFSAX has a 0.16% expense ratio, which is higher than VSBSX's 0.06% 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

VFSAX vs. VSBSX - Dividend Comparison

VFSAX's dividend yield for the trailing twelve months is around 3.21%, less than VSBSX's 3.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFSAX Vanguard FTSE All-World ex-US Small-Cap Index Fund Admiral Shares	3.21%	3.31%	3.36%	3.06%	2.22%	2.67%	1.85%	3.19%	0.00%	0.00%	0.00%	0.00%
VSBSX Vanguard Short-Term Treasury Index Fund Admiral Shares	3.83%	3.98%	4.50%	3.29%	1.12%	0.63%	1.72%	2.26%	1.80%	1.10%	0.76%	0.71%

Frequently Asked Questions

Can I hold both VFSAX and VSBSX in my portfolio?

VFSAX and VSBSX have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFSAX or VSBSX?

VFSAX has higher volatility (5.59%) compared to VSBSX (0.49%). In terms of maximum drawdown, VFSAX dropped -39.86% vs VSBSX's -5.77%.

Which has better risk-adjusted returns?

VSBSX currently has the higher Sharpe Ratio (2.27 vs 1.12), 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.