VGSH vs. SCHQ
VGSH (Vanguard Short-Term Treasury ETF) and SCHQ (Schwab Long-Term U.S. Treasury ETF) are both Government Bonds funds - VGSH tracks the Bloomberg U.S. Treasury 1-3 Year Index while SCHQ tracks the Bloomberg U.S. Long Treasury Index. Both are passively managed. Over the past 5 years, VGSH returned 1.88%/yr vs -7.19%/yr for SCHQ. Their 0.61 correlation means they have sometimes moved together and sometimes differently. Both charge a 0.03% expense ratio.
Performance
VGSH vs. SCHQ - Performance Comparison
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Returns By Period
In the year-to-date period, VGSH achieves a 0.85% return, which is significantly higher than SCHQ's -2.90% return.
VGSH
- 1D
- 0.07%
- 1M
- 0.11%
- 6M
- 0.67%
- YTD
- 0.85%
- 1Y
- 2.65%
- 3Y*
- 4.22%
- 5Y*
- 1.88%
- 10Y*
- 1.75%
- ALL TIME*
- 1.41%
SCHQ
- 1D
- 0.36%
- 1M
- -3.17%
- 6M
- -2.56%
- YTD
- -2.90%
- 1Y
- -1.33%
- 3Y*
- -0.04%
- 5Y*
- -7.19%
- 10Y*
- —
- ALL TIME*
- -4.12%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $13.53M | $14.79M | $18.63M | |
| $149.43M | $165.20M | $192.79M |
VGSH vs. SCHQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
VGSH Vanguard Short-Term Treasury ETF | 0.85% | 5.07% | 4.00% | 4.31% | -3.86% | -0.60% | 3.04% | 0.18% |
SCHQ Schwab Long-Term U.S. Treasury ETF | -2.90% | 5.50% | -6.44% | 3.43% | -29.44% | -4.86% | 17.73% | -4.20% |
Correlation
The correlation between VGSH and SCHQ is 0.65, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.65 |
Correlation (3Y) Balances recent behavior with more history. | 0.65 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.64 |
Correlation (All Time) Calculated using the full available price history since Oct 10, 2019 | 0.61 |
The correlation between VGSH and SCHQ has been stable across timeframes, ranging from 0.61 to 0.65 - a consistent structural relationship.
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Return for Risk
VGSH vs. SCHQ — Risk / Return Rank
VGSH
SCHQ
VGSH vs. SCHQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury ETF (VGSH) and Schwab Long-Term U.S. Treasury ETF (SCHQ). 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 | SCHQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.33 | ||
| Sortino ratioReturn per unit of downside risk | +3.39 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 0.98 | +0.44 |
| Calmar ratioReturn relative to maximum drawdown | 3.01 | -0.19 | +3.20 |
| Martin ratioReturn relative to average drawdown | 11.57 | -0.41 | +11.98 |
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Drawdowns
VGSH vs. SCHQ - Drawdown Comparison
The maximum VGSH drawdown since its inception was -5.70%, smaller than the maximum SCHQ drawdown of -46.13%. Use the drawdown chart below to compare losses from any high point for VGSH and SCHQ.
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Drawdown Indicators
| VGSH | SCHQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.70% | -46.13% | +40.43% |
Max Drawdown (1Y)Largest decline over 1 year | -0.88% | -7.05% | +6.17% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -13.38% | +12.41% |
Max Drawdown (5Y)Largest decline over 5 years | -5.62% | -40.93% | +35.31% |
Max Drawdown (10Y)Largest decline over 10 years | -5.70% | — | — |
Current DrawdownCurrent decline from peak | 0.00% | -38.39% | +38.39% |
Average DrawdownAverage peak-to-trough decline | -0.59% | -26.61% | +26.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 3.23% | -3.00% |
Volatility
VGSH vs. SCHQ - Volatility Comparison
The current volatility for Vanguard Short-Term Treasury ETF (VGSH) is 0.35%, while Schwab Long-Term U.S. Treasury ETF (SCHQ) has a volatility of 2.30%. This indicates that VGSH experiences smaller price fluctuations and is considered to be less risky than SCHQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGSH | SCHQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.35% | 2.30% | -1.95% |
Volatility (6M)Calculated over the trailing 6-month period | 1.01% | 6.30% | -5.29% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.23% | 8.41% | -7.18% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.98% | 14.41% | -12.43% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.58% | 15.20% | -13.62% |
VGSH vs. SCHQ - Expense Ratio Comparison
Both VGSH and SCHQ 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. SCHQ - Dividend Comparison
VGSH's dividend yield for the trailing twelve months is around 3.82%, less than SCHQ's 4.92% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHQ Schwab Long-Term U.S. Treasury ETF | 4.92% | 4.54% | 4.58% | 3.79% | 2.88% | 1.69% | 1.51% | 0.44% | 0.00% | 0.00% | 0.00% | 0.00% |
VGSH Vanguard Short-Term Treasury ETF | 3.82% | 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 SCHQ have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHQ has higher volatility (2.30%) compared to VGSH (0.35%). In terms of maximum drawdown, VGSH dropped -5.70% vs SCHQ's -46.13%.
On 5-year performance, VGSH leads with 1.88% vs -7.19% for SCHQ. 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 5-year period, VGSH has performed better with a 1.88% return vs -7.19%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGSH and SCHQ have the same expense ratio: 0.03% per year.
SCHQ has the higher dividend yield at 4.92%, compared with 3.82% for VGSH.
VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index, while SCHQ tracks Bloomberg U.S. Long Treasury Index. They also come from different issuers: Vanguard and Charles Schwab.
VGSH currently has the higher Sharpe Ratio (2.17 vs -0.16), 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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