VGSH vs. VCIT
VGSH (Vanguard Short-Term Treasury ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both exchange-traded funds - VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index, while VCIT is a Corporate Bonds fund tracking the Bloomberg U.S. 5-10 Year Corporate Bond Index. Both are passively managed. Over the past 10 years, VGSH returned 1.73%/yr vs 2.93%/yr for VCIT. A 0.62 correlation means they provide meaningful diversification when combined. Both charge a 0.03% expense ratio.
Performance
VGSH vs. VCIT - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VGSH achieves a 0.57% return, which is significantly higher than VCIT's 0.41% return. Over the past 10 years, VGSH has underperformed VCIT with an annualized return of 1.73%, while VCIT has yielded a comparatively higher 2.93% 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%
VCIT
- 1D
- -0.07%
- 1M
- 0.96%
- YTD
- 0.41%
- 6M
- 0.89%
- 1Y
- 6.00%
- 3Y*
- 6.37%
- 5Y*
- 1.11%
- 10Y*
- 2.93%
VGSH vs. VCIT - 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% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 0.41% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
Correlation
The correlation between VGSH and VCIT is 0.79, 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 | 0.79 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.78 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.77 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.69 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.62 |
The correlation between VGSH and VCIT shifts across timeframes, from 0.62 (all time) to 0.79 (1 year), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VGSH vs. VCIT — Risk / Return Rank
VGSH
VCIT
VGSH vs. VCIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury ETF (VGSH) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT). 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 | VCIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.25 | ||
| Sortino ratioReturn per unit of downside risk | +2.28 | ||
| Omega ratioGain probability vs. loss probability | 1.55 | 1.24 | +0.31 |
| Calmar ratioReturn relative to maximum drawdown | 3.76 | 1.88 | +1.87 |
| Martin ratioReturn relative to average drawdown | 14.67 | 6.07 | +8.60 |
Loading charts...
Drawdowns
VGSH vs. VCIT - Drawdown Comparison
The maximum VGSH drawdown since its inception was -5.70%, smaller than the maximum VCIT drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for VGSH and VCIT.
Loading charts...
Drawdown Indicators
| VGSH | VCIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.70% | -20.56% | +14.86% |
Max Drawdown (1Y)Largest decline over 1 year | -0.88% | -2.96% | +2.08% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -6.11% | +5.14% |
Max Drawdown (5Y)Largest decline over 5 years | -5.66% | -20.56% | +14.90% |
Max Drawdown (10Y)Largest decline over 10 years | -5.70% | -20.56% | +14.86% |
Current DrawdownCurrent decline from peak | -0.21% | -1.13% | +0.92% |
Average DrawdownAverage peak-to-trough decline | -0.60% | -3.16% | +2.56% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 0.92% | -0.69% |
Volatility
VGSH vs. VCIT - Volatility Comparison
The current volatility for Vanguard Short-Term Treasury ETF (VGSH) is 0.37%, while Vanguard Intermediate-Term Corporate Bond ETF (VCIT) has a volatility of 1.48%. This indicates that VGSH experiences smaller price fluctuations and is considered to be less risky than VCIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VGSH | VCIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.37% | 1.48% | -1.11% |
Volatility (6M)Calculated over the trailing 6-month period | 0.90% | 3.15% | -2.25% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.28% | 4.10% | -2.82% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.97% | 6.62% | -4.65% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.58% | 6.28% | -4.70% |
VGSH vs. VCIT - Expense Ratio Comparison
Both VGSH and VCIT 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. VCIT - Dividend Comparison
VGSH's dividend yield for the trailing twelve months is around 3.87%, less than VCIT's 4.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.79% | 4.62% | 4.43% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% |
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 VCIT have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCIT has higher volatility (1.48%) compared to VGSH (0.37%). In terms of maximum drawdown, VGSH dropped -5.70% vs VCIT's -20.56%.
On 10-year performance, VCIT leads with 2.93% vs 1.73% for VGSH. Both ETFs have the same 0.03% expense ratio. 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, VCIT has performed better with a 2.93% return vs 1.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGSH and VCIT have the same expense ratio: 0.03% per year.
VCIT has the higher dividend yield at 4.79%, compared with 3.87% for VGSH.
VGSH is categorized as Government Bonds, while VCIT is Corporate Bonds. VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index, while VCIT tracks Bloomberg U.S. 5-10 Year Corporate Bond Index.
VGSH currently has the higher Sharpe Ratio (2.61 vs 1.36), 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.
Find the right allocation for VGSH and VCIT
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer