VGSH vs. TFLO
VGSH (Vanguard Short-Term Treasury ETF) and TFLO (iShares Treasury Floating Rate Bond ETF) are both Government Bonds funds - VGSH tracks the Bloomberg U.S. Treasury 1-3 Year Index while TFLO tracks the Bloomberg U.S. Treasury Floating Rate Index. Both are passively managed. Over the past 10 years, VGSH returned 1.75%/yr vs 2.42%/yr for TFLO. Their 0.03 correlation means their historical movements had little consistent relationship. VGSH charges 0.03%/yr vs 0.15%/yr for TFLO.
Performance
VGSH vs. TFLO - Performance Comparison
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Returns By Period
In the year-to-date period, VGSH achieves a 0.85% return, which is significantly lower than TFLO's 2.24% return. Over the past 10 years, VGSH has underperformed TFLO with an annualized return of 1.75%, while TFLO has yielded a comparatively higher 2.42% annualized 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%
TFLO
- 1D
- 0.02%
- 1M
- 0.30%
- 6M
- 1.90%
- YTD
- 2.24%
- 1Y
- 3.90%
- 3Y*
- 4.63%
- 5Y*
- 3.77%
- 10Y*
- 2.42%
- ALL TIME*
- 1.96%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $86.01M | $74.39M | $76.29M | |
| $149.43M | $165.20M | $192.79M |
VGSH vs. TFLO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGSH Vanguard Short-Term Treasury ETF | 0.85% | 5.07% | 4.00% | 4.31% | -3.86% | -0.60% | 3.04% | 3.52% | 1.55% | 0.04% |
TFLO iShares Treasury Floating Rate Bond ETF | 2.24% | 4.22% | 5.34% | 5.12% | 1.99% | -0.02% | 0.43% | 2.04% | 1.76% | 1.01% |
Correlation
The correlation between VGSH and TFLO is -0.03, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | -0.03 |
Correlation (3Y) Balances recent behavior with more history. | 0.06 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.06 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.04 |
Correlation (All Time) Calculated using the full available price history since Feb 4, 2014 | 0.03 |
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Return for Risk
VGSH vs. TFLO — Risk / Return Rank
VGSH
TFLO
VGSH vs. TFLO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury ETF (VGSH) and iShares Treasury Floating Rate Bond ETF (TFLO). 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 | TFLO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -11.55 | ||
| Sortino ratioReturn per unit of downside risk | -43.76 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 12.25 | -10.83 |
| Calmar ratioReturn relative to maximum drawdown | 3.01 | 197.78 | -194.77 |
| Martin ratioReturn relative to average drawdown | 11.57 | 760.24 | -748.68 |
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Drawdowns
VGSH vs. TFLO - Drawdown Comparison
The maximum VGSH drawdown since its inception was -5.70%, which is greater than TFLO's maximum drawdown of -5.01%. Use the drawdown chart below to compare losses from any high point for VGSH and TFLO.
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Drawdown Indicators
| VGSH | TFLO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.70% | -5.01% | -0.69% |
Max Drawdown (1Y)Largest decline over 1 year | -0.88% | -0.02% | -0.86% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -0.04% | -0.93% |
Max Drawdown (5Y)Largest decline over 5 years | -5.62% | -0.13% | -5.49% |
Max Drawdown (10Y)Largest decline over 10 years | -5.70% | -0.16% | -5.54% |
Current DrawdownCurrent decline from peak | 0.00% | 0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -0.59% | -0.10% | -0.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 0.01% | +0.22% |
Volatility
VGSH vs. TFLO - Volatility Comparison
Vanguard Short-Term Treasury ETF (VGSH) has a higher volatility of 0.35% compared to iShares Treasury Floating Rate Bond ETF (TFLO) at 0.07%. This indicates that VGSH's price experiences larger fluctuations and is considered to be riskier than TFLO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGSH | TFLO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.35% | 0.07% | +0.28% |
Volatility (6M)Calculated over the trailing 6-month period | 1.01% | 0.19% | +0.82% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.23% | 0.29% | +0.94% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.98% | 0.35% | +1.63% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.58% | 0.45% | +1.13% |
VGSH vs. TFLO - Expense Ratio Comparison
VGSH has a 0.03% expense ratio, which is lower than TFLO's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VGSH vs. TFLO - Dividend Comparison
VGSH's dividend yield for the trailing twelve months is around 3.82%, which matches TFLO's 3.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TFLO iShares Treasury Floating Rate Bond ETF | 3.79% | 4.16% | 5.21% | 4.88% | 1.68% | 0.00% | 0.36% | 2.08% | 1.65% | 0.86% | 0.31% | 0.15% |
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 TFLO have a correlation of -0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGSH has higher volatility (0.35%) compared to TFLO (0.07%). In terms of maximum drawdown, VGSH dropped -5.70% vs TFLO's -5.01%.
On 10-year performance, TFLO leads with 2.42% vs 1.75% for VGSH. On fees, VGSH is cheaper at 0.03% per year. On volatility, TFLO has been the lower-risk option at 0.07%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TFLO has performed better with a 2.42% return vs 1.75%. 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 0.15% for TFLO.
VGSH has the higher dividend yield at 3.82%, compared with 3.79% for TFLO.
VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index, while TFLO tracks Bloomberg U.S. Treasury Floating Rate Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VGSH and 0.15% for TFLO.
TFLO currently has the higher Sharpe Ratio (13.72 vs 2.17), 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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