VFSIX vs. VUSXX

Last updated Jun 4, 2026

VFSIX (Vanguard Short-Term Investment-Grade Fund Institutional Shares) and VUSXX (Vanguard Treasury Money Market Fund) are both mutual funds - VFSIX is a Total Bond Market fund managed by Vanguard, while VUSXX is a Money Market fund actively managed by Vanguard. Over the past 5 years, VFSIX returned 2.37%/yr vs 1.56%/yr for VUSXX. At a 0.21 correlation, their price movements are largely independent. Both charge a 0.07% expense ratio.

Performance

VFSIX vs. VUSXX - 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 Treasury Money Market Fund (VUSXX). 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 lower than VUSXX's 1.51% return.

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%

VUSXX

• 1D: 0.00%
• 1M: 0.31%
• YTD: 1.51%
• 6M: 1.84%
• 1Y: 3.98%
• 3Y*: 2.61%
• 5Y*: 1.56%
• 10Y*: —

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

VFSIX vs. VUSXX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VFSIX Vanguard Short-Term Investment-Grade Fund Institutional Shares	0.83%	6.89%	5.12%	5.88%	-5.72%	-0.52%
VUSXX Vanguard Treasury Money Market Fund	1.51%	4.25%	1.65%	0.43%	0.00%	0.00%

Correlation

The correlation between VFSIX and VUSXX is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.28
Correlation (5Y) Calculated over the trailing 5-year period	0.22
Correlation (All Time) Calculated using the full available price history since May 26, 2021	0.21

The correlation between VFSIX and VUSXX shifts across timeframes, from 0.21 (all time) to 0.38 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VFSIX vs. VUSXX — 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

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. VUSXX - 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 Treasury Money Market Fund (VUSXX). 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	VUSXX	Difference
Sharpe ratio: Return per unit of total volatility	2.08	3.68	-1.59
Sortino ratio: Return per unit of downside risk	3.71	—	—
Omega ratio: Gain probability vs. loss probability	1.47	—	—
Calmar ratio: Return relative to maximum drawdown	2.84	—	—
Martin ratio: Return relative to average drawdown	11.24	—	—
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. VUSXX - Sharpe Ratio Comparison

The current VFSIX Sharpe Ratio is 2.08, which is lower than the VUSXX Sharpe Ratio of 3.68. The chart below compares the historical Sharpe Ratios of VFSIX and VUSXX, 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	VUSXX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.08	3.68	-1.59
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.80	2.15	-1.35
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.06	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.53	2.14	-0.61

Drawdowns

VFSIX vs. VUSXX - Drawdown Comparison

The maximum VFSIX drawdown since its inception was -9.21%, which is greater than VUSXX's maximum drawdown of 0.00%. Use the drawdown chart below to compare losses from any high point for VFSIX and VUSXX.

Drawdown Indicators

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

Volatility

VFSIX vs. VUSXX - Volatility Comparison

Vanguard Short-Term Investment-Grade Fund Institutional Shares (VFSIX) has a higher volatility of 0.75% compared to Vanguard Treasury Money Market Fund (VUSXX) at 0.31%. This indicates that VFSIX's price experiences larger fluctuations and is considered to be riskier than VUSXX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFSIX	VUSXX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.75%	0.31%	+0.44%
Volatility (6M) Calculated over the trailing 6-month period	1.67%	0.79%	+0.88%
Volatility (1Y) Calculated over the trailing 1-year period	2.33%	1.12%	+1.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.99%	0.75%	+2.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.49%	0.75%	+1.74%

VFSIX vs. VUSXX - Expense Ratio Comparison

Both VFSIX and VUSXX have an expense ratio of 0.07%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VFSIX vs. VUSXX - Dividend Comparison

VFSIX's dividend yield for the trailing twelve months is around 4.74%, more than VUSXX's 3.89% 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%
VUSXX Vanguard Treasury Money Market Fund	3.89%	4.15%	1.63%	0.43%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VFSIX and VUSXX in my portfolio?

VFSIX and VUSXX have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFSIX or VUSXX?

VFSIX has higher volatility (0.75%) compared to VUSXX (0.31%). In terms of maximum drawdown, VFSIX dropped -9.21% vs VUSXX's 0.00%.

Which has better risk-adjusted returns?

VUSXX currently has the higher Sharpe Ratio (3.68 vs 2.08), 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.