VGLT vs. VEA

Last updated Jun 13, 2026

VGLT (Vanguard Long-Term Treasury ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - VGLT is a Government Bonds fund tracking the Bloomberg U.S. Long Treasury 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, VGLT returned -1.21%/yr vs 10.72%/yr for VEA. At a correlation of -0.20, they often move in opposite directions. Both charge a 0.03% expense ratio.

Performance

VGLT vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Long-Term Treasury ETF (VGLT) and Vanguard FTSE Developed Markets ETF (VEA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VGLT achieves a 0.03% return, which is significantly lower than VEA's 14.73% return. Over the past 10 years, VGLT has underperformed VEA with an annualized return of -1.21%, while VEA has yielded a comparatively higher 10.72% annualized return.

VGLT

• 1D: -0.27%
• 1M: 1.30%
• YTD: 0.03%
• 6M: 0.49%
• 1Y: 3.29%
• 3Y*: -0.30%
• 5Y*: -5.52%
• 10Y*: -1.21%

VEA

• 1D: 0.34%
• 1M: 1.30%
• YTD: 14.73%
• 6M: 16.65%
• 1Y: 29.82%
• 3Y*: 19.03%
• 5Y*: 9.51%
• 10Y*: 10.72%

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

VGLT vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGLT Vanguard Long-Term Treasury ETF	0.03%	5.35%	-6.28%	3.27%	-29.34%	-4.98%	17.57%	14.30%	-1.54%	8.64%
VEA Vanguard FTSE Developed Markets ETF	14.73%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between VGLT and VEA is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.13
Correlation (10Y) Calculated over the trailing 10-year period	-0.04
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009	-0.20

The correlation between VGLT and VEA shifts across timeframes, from -0.20 (all time) to 0.36 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VGLT vs. VEA — Risk / Return Rank

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

VGLT

VGLT Risk / Return Rank: 15
VGLT Sharpe Ratio Rank: 16
VGLT Sortino Ratio Rank: 15
VGLT Omega Ratio Rank: 14
VGLT Calmar Ratio Rank: 16
VGLT Martin Ratio Rank: 16

VEA

VEA Risk / Return Rank: 62
VEA Sharpe Ratio Rank: 63
VEA Sortino Ratio Rank: 62
VEA Omega Ratio Rank: 63
VEA Calmar Ratio Rank: 59
VEA Martin Ratio Rank: 63

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.

VGLT vs. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Treasury ETF (VGLT) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VGLT	VEA	Difference
Sharpe ratio: Return per unit of total volatility	0.38	1.81	-1.43
Sortino ratio: Return per unit of downside risk	0.61	2.50	-1.89
Omega ratio: Gain probability vs. loss probability	1.07	1.33	-0.26
Calmar ratio: Return relative to maximum drawdown	0.47	2.58	-2.10
Martin ratio: Return relative to average drawdown	1.19	9.92	-8.73

VGLT vs. VEA - Sharpe Ratio Comparison

The current VGLT Sharpe Ratio is 0.38, which is lower than the VEA Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of VGLT and VEA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VGLT vs. VEA - Drawdown Comparison

The maximum VGLT drawdown since its inception was -46.18%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for VGLT and VEA.

Drawdown Indicators

	VGLT	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-46.18%	-60.68%	+14.50%
Max Drawdown (1Y) Largest decline over 1 year	-7.01%	-11.63%	+4.62%
Max Drawdown (3Y) Largest decline over 3 years	-17.68%	-13.45%	-4.23%
Max Drawdown (5Y) Largest decline over 5 years	-40.98%	-29.71%	-11.27%
Max Drawdown (10Y) Largest decline over 10 years	-46.18%	-35.73%	-10.45%
Current Drawdown Current decline from peak	-36.55%	-1.06%	-35.49%
Average Drawdown Average peak-to-trough decline	-15.09%	-13.28%	-1.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.78%	3.02%	-0.24%

Volatility

VGLT vs. VEA - Volatility Comparison

The current volatility for Vanguard Long-Term Treasury ETF (VGLT) is 2.69%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 6.84%. This indicates that VGLT 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.

Volatility by Period

	VGLT	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.69%	6.84%	-4.15%
Volatility (6M) Calculated over the trailing 6-month period	6.09%	14.38%	-8.29%
Volatility (1Y) Calculated over the trailing 1-year period	8.78%	16.58%	-7.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.57%	16.72%	-2.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.82%	17.40%	-3.58%

VGLT vs. VEA - Expense Ratio Comparison

Both VGLT 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

VGLT vs. VEA - Dividend Comparison

VGLT's dividend yield for the trailing twelve months is around 4.59%, 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%
VGLT Vanguard Long-Term Treasury ETF	4.59%	4.44%	4.33%	3.33%	2.84%	1.82%	2.15%	2.46%	2.71%	2.55%	2.69%	3.21%

Frequently Asked Questions

Can I hold both VGLT and VEA in my portfolio?

VGLT and VEA have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGLT or VEA?

VEA has higher volatility (6.84%) compared to VGLT (2.69%). In terms of maximum drawdown, VGLT dropped -46.18% vs VEA's -60.68%.

Which ETF is better, VGLT or VEA?

On 10-year performance, VEA leads with 10.72% vs -1.21% for VGLT. Both ETFs have the same 0.03% expense ratio. On volatility, VGLT has been the lower-risk option at 2.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGLT or VEA?

Over the 10-year period, VEA has performed better with a 10.72% return vs -1.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGLT or VEA?

VGLT and VEA have the same expense ratio: 0.03% per year.

Which ETF pays a higher dividend yield, VGLT or VEA?

VGLT has the higher dividend yield at 4.59%, compared with 2.62% for VEA.

What is the main difference between VGLT and VEA?

VGLT is categorized as Government Bonds, while VEA is Foreign Large Cap Equities. VGLT tracks Bloomberg U.S. Long Treasury Index, while VEA tracks FTSE Developed All Cap ex US Index.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (1.81 vs 0.38), 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.