VGIT vs. GOVT
VGIT (Vanguard Intermediate-Term Treasury ETF) and GOVT (iShares U.S. Treasury Bond ETF) are both Government Bonds funds - VGIT tracks the Bloomberg U.S. Treasury 3-10 Year Index while GOVT tracks the ICE U.S. Treasury Core Bond Index. Both are passively managed. Over the past 10 years, VGIT returned 1.21%/yr vs 0.86%/yr for GOVT. Their correlation of 0.91 suggests significant overlap in exposure. VGIT charges 0.03%/yr vs 0.05%/yr for GOVT.
Performance
VGIT vs. GOVT - Performance Comparison
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Returns By Period
In the year-to-date period, VGIT achieves a -0.73% return, which is significantly lower than GOVT's -0.33% return. Over the past 10 years, VGIT has outperformed GOVT with an annualized return of 1.21%, while GOVT has yielded a comparatively lower 0.86% annualized return.
VGIT
- 1D
- -0.41%
- 1M
- -0.67%
- YTD
- -0.73%
- 6M
- -0.51%
- 1Y
- 3.61%
- 3Y*
- 3.31%
- 5Y*
- -0.01%
- 10Y*
- 1.21%
GOVT
- 1D
- -0.35%
- 1M
- -0.44%
- YTD
- -0.33%
- 6M
- -0.22%
- 1Y
- 3.74%
- 3Y*
- 2.73%
- 5Y*
- -0.50%
- 10Y*
- 0.86%
VGIT vs. GOVT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGIT Vanguard Intermediate-Term Treasury ETF | -0.73% | 7.34% | 1.39% | 4.28% | -10.53% | -2.64% | 7.71% | 6.19% | 1.35% | 1.70% |
GOVT iShares U.S. Treasury Bond ETF | -0.33% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
Correlation
The correlation between VGIT and GOVT is 0.96 - 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 | 0.96 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.97 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.94 |
Correlation (All Time) Calculated using the full available price history since Feb 27, 2012 | 0.91 |
The correlation between VGIT and GOVT has been stable across timeframes, ranging from 0.91 to 0.97 - a consistent structural relationship.
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Return for Risk
VGIT vs. GOVT — Risk / Return Rank
VGIT
GOVT
VGIT vs. GOVT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Treasury ETF (VGIT) and iShares U.S. Treasury Bond ETF (GOVT). 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.
| VGIT | GOVT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.01 | ||
| Sortino ratioReturn per unit of downside risk | +0.02 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.15 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 1.07 | 1.12 | -0.06 |
| Martin ratioReturn relative to average drawdown | 3.14 | 3.25 | -0.11 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VGIT | GOVT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.90 | 0.89 | +0.01 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.00 | -0.08 | +0.08 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.27 | 0.16 | +0.10 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.49 | 0.26 | +0.23 |
Drawdowns
VGIT vs. GOVT - Drawdown Comparison
The maximum VGIT drawdown since its inception was -16.05%, smaller than the maximum GOVT drawdown of -19.07%. Use the drawdown chart below to compare losses from any high point for VGIT and GOVT.
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Drawdown Indicators
| VGIT | GOVT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.05% | -19.07% | +3.02% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -2.85% | +0.02% |
Max Drawdown (3Y)Largest decline over 3 years | -4.34% | -5.43% | +1.09% |
Max Drawdown (5Y)Largest decline over 5 years | -15.02% | -16.60% | +1.58% |
Max Drawdown (10Y)Largest decline over 10 years | -16.05% | -19.07% | +3.02% |
Current DrawdownCurrent decline from peak | -2.66% | -7.38% | +4.72% |
Average DrawdownAverage peak-to-trough decline | -3.52% | -5.25% | +1.73% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.96% | 0.98% | -0.02% |
Volatility
VGIT vs. GOVT - Volatility Comparison
Vanguard Intermediate-Term Treasury ETF (VGIT) and iShares U.S. Treasury Bond ETF (GOVT) have volatilities of 1.06% and 1.06%, 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.
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Volatility by Period
| VGIT | GOVT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.06% | 1.06% | 0.00% |
Volatility (6M)Calculated over the trailing 6-month period | 2.37% | 2.54% | -0.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.38% | 3.60% | -0.22% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.38% | 6.04% | -0.66% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.50% | 5.22% | -0.72% |
VGIT vs. GOVT - Expense Ratio Comparison
VGIT has a 0.03% expense ratio, which is lower than GOVT's 0.05% 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
VGIT vs. GOVT - Dividend Comparison
VGIT's dividend yield for the trailing twelve months is around 3.88%, more than GOVT's 3.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | 3.59% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
VGIT Vanguard Intermediate-Term Treasury ETF | 3.88% | 3.79% | 3.67% | 2.73% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% |
Frequently Asked Questions
With a correlation of 0.96, VGIT and GOVT 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.
GOVT has higher volatility (1.06%) compared to VGIT (1.06%). In terms of maximum drawdown, VGIT dropped -16.05% vs GOVT's -19.07%.
On 10-year performance, VGIT leads with 1.21% vs 0.86% for GOVT. On fees, VGIT is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VGIT has performed better with a 1.21% return vs 0.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGIT is cheaper with a 0.03% expense ratio, compared with 0.05% for GOVT.
VGIT has the higher dividend yield at 3.88%, compared with 3.59% for GOVT.
VGIT tracks Bloomberg U.S. Treasury 3-10 Year Index, while GOVT tracks ICE U.S. Treasury Core Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VGIT and 0.05% for GOVT.
VGIT currently has the higher Sharpe Ratio (0.90 vs 0.89), 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.
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