VGSH vs. BIV
VGSH (Vanguard Short-Term Treasury ETF) and BIV (Vanguard Intermediate-Term Bond Index ETF) are both exchange-traded funds - VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index, while BIV is a Intermediate Core Bond fund tracking the Bloomberg U.S. 5–10 Year Government/Credit Float Adjusted Bond Index. Both are passively managed. Over the past 10 years, VGSH returned 1.75%/yr vs 1.71%/yr for BIV. Their 0.70 correlation means they have sometimes moved together and sometimes differently. Both charge a 0.03% expense ratio.
Performance
VGSH vs. BIV - Performance Comparison
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Returns By Period
In the year-to-date period, VGSH achieves a 0.85% return, which is significantly higher than BIV's -0.71% return. Both investments have delivered pretty close results over the past 10 years, with VGSH having a 1.75% annualized return and BIV not far behind at 1.71%.
VGSH
- 1D
- 0.07%
- 1M
- 0.11%
- 6M
- 0.67%
- YTD
- 0.85%
- 1Y
- 2.65%
- 3Y*
- 4.22%
- 5Y*
- 1.88%
- 10Y*
- 1.75%
- ALL TIME*
- 1.41%
BIV
- 1D
- 0.22%
- 1M
- -0.95%
- 6M
- -0.57%
- YTD
- -0.71%
- 1Y
- 1.62%
- 3Y*
- 4.43%
- 5Y*
- -0.28%
- 10Y*
- 1.71%
- ALL TIME*
- 3.77%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $101.25M | $129.17M | $122.60M | |
| $149.43M | $165.20M | $192.79M |
VGSH vs. BIV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGSH Vanguard Short-Term Treasury ETF | 0.85% | 5.07% | 4.00% | 4.31% | -3.86% | -0.60% | 3.04% | 3.52% | 1.55% | 0.04% |
BIV Vanguard Intermediate-Term Bond Index ETF | -0.71% | 8.52% | 1.57% | 6.07% | -13.21% | -2.40% | 9.67% | 10.34% | -0.19% | 3.65% |
Correlation
The correlation between VGSH and BIV is 0.86, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.86 |
Correlation (3Y) Balances recent behavior with more history. | 0.83 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.84 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.78 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.70 |
The correlation between VGSH and BIV shifts across timeframes, from 0.70 (all time) to 0.86 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VGSH vs. BIV — Risk / Return Rank
VGSH
BIV
VGSH vs. BIV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury ETF (VGSH) and Vanguard Intermediate-Term Bond Index ETF (BIV). 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.
| VGSH | BIV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.76 | ||
| Sortino ratioReturn per unit of downside risk | +2.61 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 1.07 | +0.35 |
| Calmar ratioReturn relative to maximum drawdown | 3.01 | 0.51 | +2.50 |
| Martin ratioReturn relative to average drawdown | 11.57 | 1.22 | +10.35 |
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Drawdowns
VGSH vs. BIV - Drawdown Comparison
The maximum VGSH drawdown since its inception was -5.70%, smaller than the maximum BIV drawdown of -18.95%. Use the drawdown chart below to compare losses from any high point for VGSH and BIV.
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Drawdown Indicators
| VGSH | BIV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.70% | -18.95% | +13.25% |
Max Drawdown (1Y)Largest decline over 1 year | -0.88% | -3.18% | +2.30% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -5.21% | +4.24% |
Max Drawdown (5Y)Largest decline over 5 years | -5.62% | -18.45% | +12.83% |
Max Drawdown (10Y)Largest decline over 10 years | -5.70% | -18.95% | +13.25% |
Current DrawdownCurrent decline from peak | 0.00% | -2.50% | +2.50% |
Average DrawdownAverage peak-to-trough decline | -0.59% | -3.38% | +2.79% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 1.33% | -1.10% |
Volatility
VGSH vs. BIV - Volatility Comparison
The current volatility for Vanguard Short-Term Treasury ETF (VGSH) is 0.35%, while Vanguard Intermediate-Term Bond Index ETF (BIV) has a volatility of 1.08%. This indicates that VGSH experiences smaller price fluctuations and is considered to be less risky than BIV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGSH | BIV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.35% | 1.08% | -0.73% |
Volatility (6M)Calculated over the trailing 6-month period | 1.01% | 3.18% | -2.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.23% | 3.91% | -2.68% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.98% | 6.41% | -4.43% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.58% | 5.50% | -3.92% |
VGSH vs. BIV - Expense Ratio Comparison
Both VGSH and BIV 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
VGSH vs. BIV - Dividend Comparison
VGSH's dividend yield for the trailing twelve months is around 3.82%, less than BIV's 4.32% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BIV Vanguard Intermediate-Term Bond Index ETF | 4.32% | 4.01% | 3.79% | 3.09% | 2.41% | 3.42% | 2.95% | 2.75% | 2.88% | 2.69% | 3.01% | 3.02% |
VGSH Vanguard Short-Term Treasury ETF | 3.82% | 4.00% | 4.18% | 3.31% | 1.15% | 0.66% | 1.74% | 2.28% | 1.79% | 1.10% | 0.84% | 0.69% |
Frequently Asked Questions
VGSH and BIV have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BIV has higher volatility (1.08%) compared to VGSH (0.35%). In terms of maximum drawdown, VGSH dropped -5.70% vs BIV's -18.95%.
On 10-year performance, VGSH leads with 1.75% vs 1.71% for BIV. Both ETFs have the same 0.03% expense ratio. On volatility, VGSH has been the lower-risk option at 0.35%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VGSH has performed better with a 1.75% return vs 1.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGSH and BIV have the same expense ratio: 0.03% per year.
BIV has the higher dividend yield at 4.32%, compared with 3.82% for VGSH.
VGSH is categorized as Government Bonds, while BIV is Intermediate Core Bond. VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index, while BIV tracks Bloomberg U.S. 5–10 Year Government/Credit Float Adjusted Bond Index.
VGSH currently has the higher Sharpe Ratio (2.17 vs 0.42), 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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