VGSH vs. FBND
VGSH (Vanguard Short-Term Treasury ETF) and FBND (Fidelity Total Bond ETF) are both exchange-traded funds - VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index, while FBND is a Intermediate Core-Plus Bond fund actively managed by Fidelity. VGSH is passively managed, while FBND is actively managed. Over the past 10 years, VGSH returned 1.73%/yr vs 2.54%/yr for FBND. A 0.64 correlation means they provide meaningful diversification when combined. VGSH charges 0.03%/yr vs 0.36%/yr for FBND.
Performance
VGSH vs. FBND - Performance Comparison
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Returns By Period
In the year-to-date period, VGSH achieves a 0.57% return, which is significantly lower than FBND's 0.70% return. Over the past 10 years, VGSH has underperformed FBND with an annualized return of 1.73%, while FBND has yielded a comparatively higher 2.54% annualized return.
VGSH
- 1D
- -0.03%
- 1M
- 0.28%
- YTD
- 0.57%
- 6M
- 0.83%
- 1Y
- 3.36%
- 3Y*
- 4.25%
- 5Y*
- 1.83%
- 10Y*
- 1.73%
FBND
- 1D
- -0.13%
- 1M
- 1.07%
- YTD
- 0.70%
- 6M
- 1.04%
- 1Y
- 5.26%
- 3Y*
- 4.89%
- 5Y*
- 0.76%
- 10Y*
- 2.54%
VGSH vs. FBND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGSH Vanguard Short-Term Treasury ETF | 0.57% | 5.07% | 4.00% | 4.31% | -3.86% | -0.60% | 3.04% | 3.52% | 1.55% | 0.04% |
FBND Fidelity Total Bond ETF | 0.70% | 7.57% | 2.13% | 6.81% | -12.54% | -0.43% | 9.41% | 9.82% | -0.57% | 3.52% |
Correlation
The correlation between VGSH and FBND is 0.81, 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 | 0.81 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.78 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.76 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.68 |
Correlation (All Time) Calculated using the full available price history since Oct 9, 2014 | 0.64 |
The correlation between VGSH and FBND shifts across timeframes, from 0.64 (all time) to 0.81 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VGSH vs. FBND — Risk / Return Rank
VGSH
FBND
VGSH vs. FBND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury ETF (VGSH) and Fidelity Total Bond ETF (FBND). 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 | FBND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.34 | ||
| Sortino ratioReturn per unit of downside risk | +2.40 | ||
| Omega ratioGain probability vs. loss probability | 1.55 | 1.22 | +0.33 |
| Calmar ratioReturn relative to maximum drawdown | 3.76 | 1.83 | +1.93 |
| Martin ratioReturn relative to average drawdown | 14.67 | 5.32 | +9.35 |
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Drawdowns
VGSH vs. FBND - Drawdown Comparison
The maximum VGSH drawdown since its inception was -5.70%, smaller than the maximum FBND drawdown of -17.25%. Use the drawdown chart below to compare losses from any high point for VGSH and FBND.
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Drawdown Indicators
| VGSH | FBND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.70% | -17.25% | +11.55% |
Max Drawdown (1Y)Largest decline over 1 year | -0.88% | -2.66% | +1.78% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -5.94% | +4.97% |
Max Drawdown (5Y)Largest decline over 5 years | -5.66% | -17.25% | +11.59% |
Max Drawdown (10Y)Largest decline over 10 years | -5.70% | -17.25% | +11.55% |
Current DrawdownCurrent decline from peak | -0.21% | -1.23% | +1.02% |
Average DrawdownAverage peak-to-trough decline | -0.60% | -3.34% | +2.74% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 0.91% | -0.68% |
Volatility
VGSH vs. FBND - Volatility Comparison
The current volatility for Vanguard Short-Term Treasury ETF (VGSH) is 0.37%, while Fidelity Total Bond ETF (FBND) has a volatility of 1.35%. This indicates that VGSH experiences smaller price fluctuations and is considered to be less risky than FBND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGSH | FBND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.37% | 1.35% | -0.98% |
Volatility (6M)Calculated over the trailing 6-month period | 0.90% | 2.81% | -1.91% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.28% | 3.83% | -2.55% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.97% | 5.92% | -3.95% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.58% | 6.10% | -4.52% |
VGSH vs. FBND - Expense Ratio Comparison
VGSH has a 0.03% expense ratio, which is lower than FBND's 0.36% expense ratio.
Dividends
VGSH vs. FBND - Dividend Comparison
VGSH's dividend yield for the trailing twelve months is around 3.87%, less than FBND's 4.69% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FBND Fidelity Total Bond ETF | 4.69% | 4.70% | 4.73% | 4.26% | 3.07% | 1.86% | 4.25% | 2.90% | 2.93% | 2.56% | 2.84% | 3.26% |
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 FBND have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FBND has higher volatility (1.35%) compared to VGSH (0.37%). In terms of maximum drawdown, VGSH dropped -5.70% vs FBND's -17.25%.
On 10-year performance, FBND leads with 2.54% vs 1.73% for VGSH. On fees, VGSH is cheaper at 0.03% per year. On volatility, VGSH has been the lower-risk option at 0.37%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FBND has performed better with a 2.54% return vs 1.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGSH is cheaper with a 0.03% expense ratio, compared with 0.36% for FBND.
FBND has the higher dividend yield at 4.69%, compared with 3.87% for VGSH.
VGSH is categorized as Government Bonds, while FBND is Intermediate Core-Plus Bond. They also come from different issuers: Vanguard and Fidelity. Their fees differ too: 0.03% for VGSH and 0.36% for FBND.
VGSH currently has the higher Sharpe Ratio (2.61 vs 1.27), 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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