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VGSH vs. BND
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VGSH vs. BND

Last updated Jun 3, 2026

VGSH (Vanguard Short-Term Treasury ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Over the past 10 years, VGSH returned 1.74%/yr vs 1.60%/yr for BND. A 0.68 correlation means they provide meaningful diversification when combined. Both charge a 0.03% expense ratio.

Performance

VGSH vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Treasury ETF (VGSH) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VGSH achieves a 0.52% return, which is significantly higher than BND's 0.46% return. Over the past 10 years, VGSH has outperformed BND with an annualized return of 1.74%, while BND has yielded a comparatively lower 1.60% annualized return.

VGSH

1D
0.00%
1M
0.01%
YTD
0.52%
6M
0.86%
1Y
3.45%
3Y*
4.16%
5Y*
1.83%
10Y*
1.74%

BND

1D
0.03%
1M
0.12%
YTD
0.46%
6M
0.46%
1Y
5.19%
3Y*
4.03%
5Y*
0.20%
10Y*
1.60%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VGSH vs. BND - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VGSH
Vanguard Short-Term Treasury ETF		0.52%5.07%4.00%4.31%-3.86%-0.60%3.04%3.52%1.55%0.04%
BND
Vanguard Total Bond Market ETF		0.46%7.08%1.38%5.65%-13.11%-1.86%7.71%8.84%-0.12%3.57%

Correlation

The correlation between VGSH and BND is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.82

Correlation (3Y)
Calculated over the trailing 3-year period

0.79

Correlation (5Y)
Calculated over the trailing 5-year period

0.79

Correlation (10Y)
Calculated over the trailing 10-year period

0.74

Correlation (All Time)
Calculated using the full available price history since Nov 24, 2009

0.68

The correlation between VGSH and BND shifts across timeframes, from 0.68 (all time) to 0.82 (1 year), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

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Vanguard Short-Term Treasury ETF

Vanguard Total Bond Market ETF

Often compared with VGSH:
VGSH vs. sgovVGSH vs. SHVVGSH vs. SHYVGSH vs. SGOVVGSH vs. VTIPVGSH vs. VCSHVGSH vs. VUSXX
Often compared with BND:
BND vs. BNDXBND vs. FXNAXBND vs. AGGBND vs. FBNDBND vs. BNDWBND vs. TLTBND vs. VBTLX

Return for Risk

VGSH vs. BND — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VGSH
VGSH Risk / Return Rank: 8383
Overall Rank
VGSH Sharpe Ratio Rank: 8282
Sharpe Ratio Rank
VGSH Sortino Ratio Rank: 9292
Sortino Ratio Rank
VGSH Omega Ratio Rank: 8989
Omega Ratio Rank
VGSH Calmar Ratio Rank: 7575
Calmar Ratio Rank
VGSH Martin Ratio Rank: 7878
Martin Ratio Rank
BND
BND Risk / Return Rank: 3838
Overall Rank
BND Sharpe Ratio Rank: 3838
Sharpe Ratio Rank
BND Sortino Ratio Rank: 4040
Sortino Ratio Rank
BND Omega Ratio Rank: 3636
Omega Ratio Rank
BND Calmar Ratio Rank: 3737
Calmar Ratio Rank
BND Martin Ratio Rank: 3636
Martin Ratio Rank
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.

VGSH vs. BND - Risk-Adjusted Trends 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.

VGSHBNDDifference

Sharpe ratio

Return per unit of total volatility

2.69

1.38

+1.31

Sortino ratio

Return per unit of downside risk

4.45

2.07

+2.39

Omega ratio

Gain probability vs. loss probability

1.57

1.24

+0.33

Calmar ratio

Return relative to maximum drawdown

3.81

1.85

+1.96

Martin ratio

Return relative to average drawdown

15.25

5.66

+9.60

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VGSH vs. BND - Sharpe Ratio Comparison

The current VGSH Sharpe Ratio is 2.69, which is higher than the BND Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of VGSH and BND, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

VGSHBNDDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.69

1.38

+1.31

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.93

0.03

+0.90

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

1.11

0.29

+0.82

Sharpe Ratio (All Time)

Calculated using the full available price history

1.02

0.59

+0.43

Drawdowns

VGSH vs. BND - Drawdown Comparison

The maximum VGSH drawdown since its inception was -5.70%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VGSH and BND.

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Drawdown Indicators

VGSHBNDDifference

Max Drawdown

Largest peak-to-trough decline

-5.70%

-18.58%

+12.88%

Max Drawdown (1Y)

Largest decline over 1 year

-0.88%

-2.68%

+1.80%

Max Drawdown (3Y)

Largest decline over 3 years

-0.97%

-5.92%

+4.95%

Max Drawdown (5Y)

Largest decline over 5 years

-5.66%

-17.91%

+12.25%

Max Drawdown (10Y)

Largest decline over 10 years

-5.70%

-18.58%

+12.88%

Current Drawdown

Current decline from peak

-0.26%

-2.18%

+1.92%

Average Drawdown

Average peak-to-trough decline

-0.60%

-3.06%

+2.46%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.22%

0.88%

-0.66%

Volatility

VGSH vs. BND - Volatility Comparison

The current volatility for Vanguard Short-Term Treasury ETF (VGSH) is 0.36%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.26%. 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.

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Volatility by Period

VGSHBNDDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.36%

1.26%

-0.90%

Volatility (6M)

Calculated over the trailing 6-month period

0.88%

2.68%

-1.80%

Volatility (1Y)

Calculated over the trailing 1-year period

1.29%

3.78%

-2.49%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

1.97%

6.02%

-4.05%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

1.57%

5.53%

-3.96%

VGSH vs. BND - Expense Ratio Comparison

Both VGSH and BND 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. BND - Dividend Comparison

VGSH's dividend yield for the trailing twelve months is around 3.87%, less than BND's 3.96% yield.

PositionTTM20252024202320222021202020192018201720162015
BND
Vanguard Total Bond Market ETF		3.96%3.86%3.67%3.09%2.60%2.12%2.38%2.72%2.81%2.54%2.51%2.57%
VGSH
Vanguard Short-Term Treasury ETF		3.87%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 BND have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

BND has higher volatility (1.26%) compared to VGSH (0.36%). In terms of maximum drawdown, VGSH dropped -5.70% vs BND's -18.58%.

On 10-year performance, VGSH leads with 1.74% vs 1.60% for BND. Both ETFs have the same 0.03% expense ratio. On volatility, VGSH has been the lower-risk option at 0.36%. 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 1.74% return vs 1.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VGSH and BND have the same expense ratio: 0.03% per year.

BND has the higher dividend yield at 3.96%, compared with 3.87% for VGSH.

VGSH is categorized as Government Bonds, while BND is Total Bond Market. VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index.

VGSH currently has the higher Sharpe Ratio (2.69 vs 1.38), 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.

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