VGIT vs. VEA
VGIT (Vanguard Intermediate-Term Treasury ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - VGIT is a Government Bonds fund tracking the Bloomberg U.S. Treasury 3-10 Year Index, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, VGIT returned 1.23%/yr vs 10.17%/yr for VEA. At a correlation of -0.15, they often move in opposite directions. Both charge a 0.03% expense ratio.
Performance
VGIT vs. VEA - Performance Comparison
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Returns By Period
In the year-to-date period, VGIT achieves a -0.46% return, which is significantly lower than VEA's 14.92% return. Over the past 10 years, VGIT has underperformed VEA with an annualized return of 1.23%, while VEA has yielded a comparatively higher 10.17% annualized return.
VGIT
- 1D
- -0.19%
- 1M
- -0.16%
- YTD
- -0.46%
- 6M
- -0.60%
- 1Y
- 3.54%
- 3Y*
- 3.40%
- 5Y*
- 0.05%
- 10Y*
- 1.23%
VEA
- 1D
- -0.90%
- 1M
- 5.54%
- YTD
- 14.92%
- 6M
- 18.15%
- 1Y
- 32.48%
- 3Y*
- 19.77%
- 5Y*
- 9.60%
- 10Y*
- 10.17%
VGIT vs. VEA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGIT Vanguard Intermediate-Term Treasury ETF | -0.46% | 7.34% | 1.39% | 4.28% | -10.53% | -2.64% | 7.71% | 6.19% | 1.35% | 1.70% |
VEA Vanguard FTSE Developed Markets ETF | 14.92% | 35.16% | 3.15% | 17.93% | -15.34% | 11.66% | 9.71% | 22.62% | -14.75% | 26.42% |
Correlation
The correlation between VGIT and VEA is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.35 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.29 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.17 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.01 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | -0.15 |
The correlation between VGIT and VEA shifts across timeframes, from -0.15 (all time) to 0.35 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VGIT vs. VEA — Risk / Return Rank
VGIT
VEA
VGIT vs. VEA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Treasury ETF (VGIT) and Vanguard FTSE Developed Markets ETF (VEA). 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 | VEA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.04 | ||
| Sortino ratioReturn per unit of downside risk | -1.28 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.38 | -0.19 |
| Calmar ratioReturn relative to maximum drawdown | 1.25 | 2.81 | -1.55 |
| Martin ratioReturn relative to average drawdown | 3.75 | 10.94 | -7.19 |
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 | VEA | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.05 | 2.09 | -1.04 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.01 | 0.58 | -0.57 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.27 | 0.59 | -0.31 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.49 | 0.25 | +0.25 |
Drawdowns
VGIT vs. VEA - Drawdown Comparison
The maximum VGIT drawdown since its inception was -16.05%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for VGIT and VEA.
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Drawdown Indicators
| VGIT | VEA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.05% | -60.68% | +44.63% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -11.63% | +8.80% |
Max Drawdown (3Y)Largest decline over 3 years | -4.34% | -13.45% | +9.11% |
Max Drawdown (5Y)Largest decline over 5 years | -15.02% | -29.71% | +14.69% |
Max Drawdown (10Y)Largest decline over 10 years | -16.05% | -35.73% | +19.68% |
Current DrawdownCurrent decline from peak | -2.39% | -0.90% | -1.49% |
Average DrawdownAverage peak-to-trough decline | -3.52% | -13.29% | +9.77% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.94% | 2.98% | -2.04% |
Volatility
VGIT vs. VEA - Volatility Comparison
The current volatility for Vanguard Intermediate-Term Treasury ETF (VGIT) is 1.05%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 5.66%. This indicates that VGIT experiences smaller price fluctuations and is considered to be less risky than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGIT | VEA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.05% | 5.66% | -4.61% |
Volatility (6M)Calculated over the trailing 6-month period | 2.33% | 13.32% | -10.99% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.38% | 15.66% | -12.28% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.38% | 16.55% | -11.17% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.50% | 17.36% | -12.86% |
VGIT vs. VEA - Expense Ratio Comparison
Both VGIT and VEA have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VGIT vs. VEA - Dividend Comparison
VGIT's dividend yield for the trailing twelve months is around 3.87%, more than VEA's 2.62% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VEA Vanguard FTSE Developed Markets ETF | 2.62% | 3.22% | 3.35% | 3.15% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% |
VGIT Vanguard Intermediate-Term Treasury ETF | 3.87% | 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
VGIT and VEA have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VEA has higher volatility (5.66%) compared to VGIT (1.05%). In terms of maximum drawdown, VGIT dropped -16.05% vs VEA's -60.68%.
On 10-year performance, VEA leads with 10.17% vs 1.23% for VGIT. Both ETFs have the same 0.03% expense ratio. On volatility, VGIT has been the lower-risk option at 1.05%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VEA has performed better with a 10.17% return vs 1.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGIT and VEA have the same expense ratio: 0.03% per year.
VGIT has the higher dividend yield at 3.87%, compared with 2.62% for VEA.
VGIT is categorized as Government Bonds, while VEA is Foreign Large Cap Equities. VGIT tracks Bloomberg U.S. Treasury 3-10 Year Index, while VEA tracks FTSE Developed All Cap ex US Index.
VEA currently has the higher Sharpe Ratio (2.09 vs 1.05), 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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