VGSH vs. FUMBX

Last updated Jun 3, 2026

VGSH (Vanguard Short-Term Treasury ETF) and FUMBX (Fidelity Short-Term Treasury Bond Index Fund) are both Government Bonds funds - VGSH tracks the Bloomberg U.S. Treasury 1-3 Year Index while FUMBX tracks the Bloomberg Barclays 1-5 Year U.S. Treasury Index. Both are passively managed. Over the past 5 years, VGSH returned 1.83%/yr vs 1.29%/yr for FUMBX. Their correlation of 0.86 suggests significant overlap in exposure. Both charge a 0.03% expense ratio.

Performance

VGSH vs. FUMBX - Performance Comparison

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

Returns By Period

In the year-to-date period, VGSH achieves a 0.52% return, which is significantly higher than FUMBX's 0.19% 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%

FUMBX

• 1D: -0.10%
• 1M: -0.13%
• YTD: 0.19%
• 6M: 0.46%
• 1Y: 3.39%
• 3Y*: 4.03%
• 5Y*: 1.29%
• 10Y*: —

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

VGSH vs. FUMBX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGSH Vanguard Short-Term Treasury ETF	0.52%	5.07%	4.00%	4.31%	-3.86%	-0.60%	3.04%	3.52%	1.55%	-0.25%
FUMBX Fidelity Short-Term Treasury Bond Index Fund	0.19%	5.83%	3.25%	4.47%	-5.84%	-1.38%	4.22%	4.19%	1.47%	-0.33%

Correlation

The correlation between VGSH and FUMBX is 0.86, 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	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (All Time) Calculated using the full available price history since Oct 20, 2017	0.86

The correlation between VGSH and FUMBX has been stable across timeframes, ranging from 0.86 to 0.90 - a consistent structural relationship.

Return for Risk

VGSH vs. FUMBX — Risk / Return Rank

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

VGSH

VGSH Risk / Return Rank: 83
VGSH Sharpe Ratio Rank: 82
VGSH Sortino Ratio Rank: 92
VGSH Omega Ratio Rank: 89
VGSH Calmar Ratio Rank: 75
VGSH Martin Ratio Rank: 78

FUMBX

FUMBX Risk / Return Rank: 35
FUMBX Sharpe Ratio Rank: 30
FUMBX Sortino Ratio Rank: 38
FUMBX Omega Ratio Rank: 37
FUMBX Calmar Ratio Rank: 37
FUMBX Martin Ratio Rank: 33

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. FUMBX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury ETF (VGSH) and Fidelity Short-Term Treasury Bond Index Fund (FUMBX). 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.

	VGSH	FUMBX	Difference
Sharpe ratio Return per unit of total volatility	2.69	1.60	+1.09
Sortino ratio Return per unit of downside risk	4.45	2.58	+1.88
Omega ratio Gain probability vs. loss probability	1.57	1.32	+0.25
Calmar ratio Return relative to maximum drawdown	3.81	2.36	+1.45
Martin ratio Return relative to average drawdown	15.25	7.59	+7.66
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. FUMBX - Sharpe Ratio Comparison

The current VGSH Sharpe Ratio is 2.69, which is higher than the FUMBX Sharpe Ratio of 1.60. The chart below compares the historical Sharpe Ratios of VGSH and FUMBX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VGSH	FUMBX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.69	1.60	+1.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.93	0.44	+0.49
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.11	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.02	0.73	+0.29

Drawdowns

VGSH vs. FUMBX - Drawdown Comparison

The maximum VGSH drawdown since its inception was -5.70%, smaller than the maximum FUMBX drawdown of -8.83%. Use the drawdown chart below to compare losses from any high point for VGSH and FUMBX.

Drawdown Indicators

	VGSH	FUMBX	Difference
Max Drawdown Largest peak-to-trough decline	-5.70%	-8.83%	+3.13%
Max Drawdown (1Y) Largest decline over 1 year	-0.88%	-1.54%	+0.66%
Max Drawdown (3Y) Largest decline over 3 years	-0.97%	-1.57%	+0.60%
Max Drawdown (5Y) Largest decline over 5 years	-5.66%	-8.60%	+2.94%
Max Drawdown (10Y) Largest decline over 10 years	-5.70%	—	—
Current Drawdown Current decline from peak	-0.26%	-0.77%	+0.51%
Average Drawdown Average peak-to-trough decline	-0.60%	-1.86%	+1.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.22%	0.48%	-0.26%

Volatility

VGSH vs. FUMBX - Volatility Comparison

The current volatility for Vanguard Short-Term Treasury ETF (VGSH) is 0.36%, while Fidelity Short-Term Treasury Bond Index Fund (FUMBX) has a volatility of 0.69%. This indicates that VGSH experiences smaller price fluctuations and is considered to be less risky than FUMBX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGSH	FUMBX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.36%	0.69%	-0.33%
Volatility (6M) Calculated over the trailing 6-month period	0.88%	1.51%	-0.63%
Volatility (1Y) Calculated over the trailing 1-year period	1.29%	2.06%	-0.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.97%	2.92%	-0.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.57%	2.49%	-0.92%

VGSH vs. FUMBX - Expense Ratio Comparison

Both VGSH and FUMBX 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. FUMBX - Dividend Comparison

VGSH's dividend yield for the trailing twelve months is around 3.87%, more than FUMBX's 3.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FUMBX Fidelity Short-Term Treasury Bond Index Fund	3.76%	3.51%	2.91%	1.64%	0.86%	1.15%	1.41%	1.88%	1.64%	0.34%	0.00%	0.00%
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

Can I hold both VGSH and FUMBX in my portfolio?

VGSH and FUMBX 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.

Which is riskier, VGSH or FUMBX?

FUMBX has higher volatility (0.69%) compared to VGSH (0.36%). In terms of maximum drawdown, VGSH dropped -5.70% vs FUMBX's -8.83%.

Which has better risk-adjusted returns?

VGSH currently has the higher Sharpe Ratio (2.69 vs 1.60), 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.