VGIT vs. VGLT
Compare and contrast key facts about Vanguard Intermediate-Term Treasury ETF (VGIT) and Vanguard Long-Term Treasury ETF (VGLT).
VGIT and VGLT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VGIT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 3-10 Year Government Float Adjusted Index. It was launched on Nov 19, 2009. VGLT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. Long Government Float Adjusted Index. It was launched on Nov 19, 2009. Both VGIT and VGLT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VGIT or VGLT.
Key characteristics
| VGIT | VGLT | |
|---|---|---|
| YTD Return | 1.25% | -4.50% |
| 1Y Return | 4.75% | 5.38% |
| 3Y Return (Ann) | -1.78% | -10.72% |
| 5Y Return (Ann) | -0.21% | -5.09% |
| 10Y Return (Ann) | 1.12% | 0.05% |
| Sharpe Ratio | 1.07 | 0.49 |
| Sortino Ratio | 1.58 | 0.78 |
| Omega Ratio | 1.19 | 1.09 |
| Calmar Ratio | 0.41 | 0.16 |
| Martin Ratio | 3.23 | 1.21 |
| Ulcer Index | 1.65% | 5.47% |
| Daily Std Dev | 4.95% | 13.47% |
| Max Drawdown | -16.05% | -46.18% |
| Current Drawdown | -8.77% | -38.65% |
Correlation
The correlation between VGIT and VGLT is 0.84, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VGIT vs. VGLT - Performance Comparison
In the year-to-date period, VGIT achieves a 1.25% return, which is significantly higher than VGLT's -4.50% return. Over the past 10 years, VGIT has outperformed VGLT with an annualized return of 1.12%, while VGLT has yielded a comparatively lower 0.05% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VGIT vs. VGLT - Expense Ratio Comparison
Both VGIT and VGLT have an expense ratio of 0.04%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
VGIT vs. VGLT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Treasury ETF (VGIT) and Vanguard Long-Term Treasury ETF (VGLT). 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.
Dividends
VGIT vs. VGLT - Dividend Comparison
VGIT's dividend yield for the trailing twelve months is around 3.58%, less than VGLT's 4.12% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGIT Vanguard Intermediate-Term Treasury ETF | 3.58% | 2.72% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% | 1.54% | 1.63% |
VGLT Vanguard Long-Term Treasury ETF | 4.12% | 3.33% | 2.83% | 1.82% | 2.15% | 2.46% | 2.71% | 2.55% | 2.69% | 3.21% | 2.75% | 3.19% |
Drawdowns
VGIT vs. VGLT - Drawdown Comparison
The maximum VGIT drawdown since its inception was -16.05%, smaller than the maximum VGLT drawdown of -46.18%. Use the drawdown chart below to compare losses from any high point for VGIT and VGLT. For additional features, visit the drawdowns tool.
Volatility
VGIT vs. VGLT - Volatility Comparison
The current volatility for Vanguard Intermediate-Term Treasury ETF (VGIT) is 1.21%, while Vanguard Long-Term Treasury ETF (VGLT) has a volatility of 4.29%. This indicates that VGIT experiences smaller price fluctuations and is considered to be less risky than VGLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.