VFSIX vs. VFSTX

Last updated Jun 4, 2026

VFSIX (Vanguard Short-Term Investment-Grade Fund Institutional Shares) and VFSTX (Vanguard Short-Term Investment-Grade Fund Investor Shares) are both Total Bond Market funds from Vanguard. Over the past 10 years, VFSIX returned 2.63%/yr vs 2.54%/yr for VFSTX. With a 1.00 correlation, they move nearly in lockstep. VFSIX charges 0.07%/yr vs 0.20%/yr for VFSTX.

Performance

VFSIX vs. VFSTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Investment-Grade Fund Institutional Shares (VFSIX) and Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFSIX achieves a 0.83% return, which is significantly higher than VFSTX's 0.77% return. Both investments have delivered pretty close results over the past 10 years, with VFSIX having a 2.63% annualized return and VFSTX not far behind at 2.54%.

VFSIX

• 1D: 0.00%
• 1M: 0.31%
• YTD: 0.83%
• 6M: 1.12%
• 1Y: 4.82%
• 3Y*: 5.55%
• 5Y*: 2.37%
• 10Y*: 2.63%

VFSTX

• 1D: 0.00%
• 1M: 0.30%
• YTD: 0.77%
• 6M: 1.05%
• 1Y: 4.69%
• 3Y*: 5.52%
• 5Y*: 2.30%
• 10Y*: 2.54%

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

VFSIX vs. VFSTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFSIX Vanguard Short-Term Investment-Grade Fund Institutional Shares	0.83%	6.89%	5.12%	5.88%	-5.72%	-0.59%	5.28%	5.88%	1.00%	2.15%
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares	0.77%	6.75%	4.98%	6.06%	-5.84%	-0.70%	5.16%	5.75%	0.87%	2.02%

Correlation

The correlation between VFSIX and VFSTX is 1.00 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since Oct 1, 1997	1.00

The correlation between VFSIX and VFSTX has been stable across timeframes, ranging from 1.00 to 1.00 - a consistent structural relationship.

Return for Risk

VFSIX vs. VFSTX — Risk / Return Rank

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

VFSIX

VFSIX Risk / Return Rank: 62
VFSIX Sharpe Ratio Rank: 50
VFSIX Sortino Ratio Rank: 78
VFSIX Omega Ratio Rank: 71
VFSIX Calmar Ratio Rank: 55
VFSIX Martin Ratio Rank: 56

VFSTX

VFSTX Risk / Return Rank: 59
VFSTX Sharpe Ratio Rank: 48
VFSTX Sortino Ratio Rank: 75
VFSTX Omega Ratio Rank: 68
VFSTX Calmar Ratio Rank: 52
VFSTX Martin Ratio Rank: 53

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.

VFSIX vs. VFSTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Investment-Grade Fund Institutional Shares (VFSIX) and Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX). 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.

	VFSIX	VFSTX	Difference
Sharpe ratio Return per unit of total volatility	2.08	2.04	+0.04
Sortino ratio Return per unit of downside risk	3.71	3.61	+0.10
Omega ratio Gain probability vs. loss probability	1.47	1.46	+0.01
Calmar ratio Return relative to maximum drawdown	2.84	2.76	+0.08
Martin ratio Return relative to average drawdown	11.24	10.82	+0.42
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFSIX vs. VFSTX - Sharpe Ratio Comparison

The current VFSIX Sharpe Ratio is 2.08, which is comparable to the VFSTX Sharpe Ratio of 2.04. The chart below compares the historical Sharpe Ratios of VFSIX and VFSTX, 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

	VFSIX	VFSTX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.08	2.04	+0.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.80	0.78	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.06	1.03	+0.03
Sharpe Ratio (All Time) Calculated using the full available price history	1.53	1.51	+0.02

Drawdowns

VFSIX vs. VFSTX - Drawdown Comparison

The maximum VFSIX drawdown since its inception was -9.21%, roughly equal to the maximum VFSTX drawdown of -9.35%. Use the drawdown chart below to compare losses from any high point for VFSIX and VFSTX.

Drawdown Indicators

	VFSIX	VFSTX	Difference
Max Drawdown Largest peak-to-trough decline	-9.21%	-9.35%	+0.14%
Max Drawdown (1Y) Largest decline over 1 year	-1.71%	-1.71%	0.00%
Max Drawdown (3Y) Largest decline over 3 years	-1.71%	-1.71%	0.00%
Max Drawdown (5Y) Largest decline over 5 years	-9.21%	-9.35%	+0.14%
Max Drawdown (10Y) Largest decline over 10 years	-9.21%	-9.35%	+0.14%
Current Drawdown Current decline from peak	-0.23%	-0.26%	+0.03%
Average Drawdown Average peak-to-trough decline	-0.79%	-1.12%	+0.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.43%	0.43%	0.00%

Volatility

VFSIX vs. VFSTX - Volatility Comparison

Vanguard Short-Term Investment-Grade Fund Institutional Shares (VFSIX) and Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) have volatilities of 0.75% and 0.74%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFSIX	VFSTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.75%	0.74%	+0.01%
Volatility (6M) Calculated over the trailing 6-month period	1.67%	1.65%	+0.02%
Volatility (1Y) Calculated over the trailing 1-year period	2.33%	2.31%	+0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.99%	2.98%	+0.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.49%	2.48%	+0.01%

VFSIX vs. VFSTX - Expense Ratio Comparison

VFSIX has a 0.07% expense ratio, which is lower than VFSTX's 0.20% 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

VFSIX vs. VFSTX - Dividend Comparison

VFSIX's dividend yield for the trailing twelve months is around 4.74%, more than VFSTX's 4.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFSIX Vanguard Short-Term Investment-Grade Fund Institutional Shares	4.74%	4.61%	4.19%	2.88%	2.06%	1.81%	2.35%	2.95%	2.80%	2.13%	2.17%	2.12%
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares	4.61%	4.48%	4.06%	3.05%	1.93%	1.70%	2.24%	2.83%	2.68%	2.00%	2.04%	1.99%

Frequently Asked Questions

Can I hold both VFSIX and VFSTX in my portfolio?

With a correlation of 1.00, VFSIX and VFSTX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VFSIX or VFSTX?

VFSIX has higher volatility (0.75%) compared to VFSTX (0.74%). In terms of maximum drawdown, VFSIX dropped -9.21% vs VFSTX's -9.35%.

Which has better risk-adjusted returns?

VFSIX currently has the higher Sharpe Ratio (2.08 vs 2.04), 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.