VGSH vs. SCHP
VGSH (Vanguard Short-Term Treasury ETF) and SCHP (Schwab U.S. TIPS ETF) are both exchange-traded funds - VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index, while SCHP is a Inflation-Protected Bonds fund tracking the Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). Both are passively managed. Over the past 10 years, VGSH returned 1.71%/yr vs 2.53%/yr for SCHP. A 0.56 correlation means they provide meaningful diversification when combined. Both charge a 0.03% expense ratio.
Performance
VGSH vs. SCHP - Performance Comparison
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Returns By Period
In the year-to-date period, VGSH achieves a 0.36% return, which is significantly lower than SCHP's 0.96% return. Over the past 10 years, VGSH has underperformed SCHP with an annualized return of 1.71%, while SCHP has yielded a comparatively higher 2.53% annualized return.
VGSH
- 1D
- 0.00%
- 1M
- -0.20%
- YTD
- 0.36%
- 6M
- 0.76%
- 1Y
- 3.41%
- 3Y*
- 4.14%
- 5Y*
- 1.79%
- 10Y*
- 1.71%
SCHP
- 1D
- -0.19%
- 1M
- -0.89%
- YTD
- 0.96%
- 6M
- 0.95%
- 1Y
- 4.80%
- 3Y*
- 3.84%
- 5Y*
- 1.02%
- 10Y*
- 2.53%
VGSH vs. SCHP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGSH Vanguard Short-Term Treasury ETF | 0.36% | 5.07% | 4.00% | 4.31% | -3.86% | -0.60% | 3.04% | 3.52% | 1.55% | 0.04% |
SCHP Schwab U.S. TIPS ETF | 0.96% | 6.76% | 1.95% | 3.91% | -12.02% | 5.87% | 10.86% | 8.52% | -1.78% | 3.02% |
Correlation
The correlation between VGSH and SCHP is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.71 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.73 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.67 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Aug 5, 2010 | 0.56 |
The correlation between VGSH and SCHP shifts across timeframes, from 0.56 (all time) to 0.73 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VGSH vs. SCHP — Risk / Return Rank
VGSH
SCHP
VGSH vs. SCHP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury ETF (VGSH) and Schwab U.S. TIPS ETF (SCHP). 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 | SCHP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.23 | ||
| Sortino ratioReturn per unit of downside risk | +2.22 | ||
| Omega ratioGain probability vs. loss probability | 1.57 | 1.26 | +0.31 |
| Calmar ratioReturn relative to maximum drawdown | 3.88 | 2.50 | +1.38 |
| Martin ratioReturn relative to average drawdown | 15.29 | 7.59 | +7.70 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VGSH | SCHP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.69 | 1.47 | +1.23 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.91 | 0.17 | +0.74 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.09 | 0.45 | +0.64 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.01 | 0.50 | +0.51 |
Drawdowns
VGSH vs. SCHP - Drawdown Comparison
The maximum VGSH drawdown since its inception was -5.70%, smaller than the maximum SCHP drawdown of -14.26%. Use the drawdown chart below to compare losses from any high point for VGSH and SCHP.
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Drawdown Indicators
| VGSH | SCHP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.70% | -14.26% | +8.56% |
Max Drawdown (1Y)Largest decline over 1 year | -0.88% | -1.93% | +1.05% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -4.48% | +3.51% |
Max Drawdown (5Y)Largest decline over 5 years | -5.66% | -14.26% | +8.60% |
Max Drawdown (10Y)Largest decline over 10 years | -5.70% | -14.26% | +8.56% |
Current DrawdownCurrent decline from peak | -0.41% | -0.89% | +0.48% |
Average DrawdownAverage peak-to-trough decline | -0.60% | -3.93% | +3.33% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.22% | 0.63% | -0.41% |
Volatility
VGSH vs. SCHP - Volatility Comparison
The current volatility for Vanguard Short-Term Treasury ETF (VGSH) is 0.35%, while Schwab U.S. TIPS ETF (SCHP) has a volatility of 1.00%. This indicates that VGSH experiences smaller price fluctuations and is considered to be less risky than SCHP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGSH | SCHP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.35% | 1.00% | -0.65% |
Volatility (6M)Calculated over the trailing 6-month period | 0.89% | 2.24% | -1.35% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.28% | 3.29% | -2.01% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.97% | 6.12% | -4.15% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.58% | 5.59% | -4.01% |
VGSH vs. SCHP - Expense Ratio Comparison
Both VGSH and SCHP 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. SCHP - Dividend Comparison
VGSH's dividend yield for the trailing twelve months is around 3.88%, less than SCHP's 4.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHP Schwab U.S. TIPS ETF | 4.01% | 4.06% | 2.99% | 3.02% | 7.19% | 4.39% | 1.11% | 2.02% | 2.26% | 1.90% | 1.38% | 0.28% |
VGSH Vanguard Short-Term Treasury ETF | 3.88% | 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 SCHP have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHP has higher volatility (1.00%) compared to VGSH (0.35%). In terms of maximum drawdown, VGSH dropped -5.70% vs SCHP's -14.26%.
On 10-year performance, SCHP leads with 2.53% vs 1.71% for VGSH. 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, SCHP has performed better with a 2.53% return vs 1.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGSH and SCHP have the same expense ratio: 0.03% per year.
SCHP has the higher dividend yield at 4.01%, compared with 3.88% for VGSH.
VGSH is categorized as Government Bonds, while SCHP is Inflation-Protected Bonds. VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index, while SCHP tracks Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). They also come from different issuers: Vanguard and Charles Schwab.
VGSH currently has the higher Sharpe Ratio (2.69 vs 1.47), 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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