VGSH vs. BND
Compare and contrast key facts about Vanguard Short-Term Treasury ETF (VGSH) and Vanguard Total Bond Market ETF (BND).
VGSH and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VGSH is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 1-3 Year Government Float Adjusted Index. It was launched on Nov 19, 2009. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. Both VGSH and BND 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: VGSH or BND.
Key characteristics
| VGSH | BND | |
|---|---|---|
| YTD Return | -0.10% | -3.21% |
| 1Y Return | 2.17% | -1.42% |
| 3Y Return (Ann) | -0.13% | -3.66% |
| 5Y Return (Ann) | 1.00% | -0.22% |
| 10Y Return (Ann) | 0.96% | 1.17% |
| Sharpe Ratio | 0.99 | -0.26 |
| Daily Std Dev | 2.05% | 6.75% |
| Max Drawdown | -5.70% | -18.84% |
| Current Drawdown | -0.59% | -13.46% |
Correlation
The correlation between VGSH and BND is 0.65, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
VGSH vs. BND - Performance Comparison
In the year-to-date period, VGSH achieves a -0.10% return, which is significantly higher than BND's -3.21% return. Over the past 10 years, VGSH has underperformed BND with an annualized return of 0.96%, while BND has yielded a comparatively higher 1.17% 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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VGSH vs. BND - Expense Ratio Comparison
VGSH has a 0.04% expense ratio, which is higher than BND's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
VGSH vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury ETF (VGSH) and Vanguard Total Bond Market ETF (BND). 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
VGSH vs. BND - Dividend Comparison
VGSH's dividend yield for the trailing twelve months is around 3.71%, more than BND's 3.37% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGSH Vanguard Short-Term Treasury ETF | 3.71% | 3.31% | 1.15% | 0.66% | 1.74% | 2.28% | 1.79% | 1.10% | 0.82% | 0.71% | 0.46% | 0.34% |
BND Vanguard Total Bond Market ETF | 3.37% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
VGSH vs. BND - Drawdown Comparison
The maximum VGSH drawdown since its inception was -5.70%, smaller than the maximum BND drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for VGSH and BND. For additional features, visit the drawdowns tool.
Volatility
VGSH vs. BND - Volatility Comparison
The current volatility for Vanguard Short-Term Treasury ETF (VGSH) is 0.58%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.84%. This indicates that VGSH experiences smaller price fluctuations and is considered to be less risky than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.