VGSH vs. VGLT
VGSH (Vanguard Short-Term Treasury ETF) and VGLT (Vanguard Long-Term Treasury ETF) are both Government Bonds funds from Vanguard - VGSH tracks the Bloomberg U.S. Treasury 1-3 Year Index while VGLT tracks the Bloomberg U.S. Long Treasury Index. Both are passively managed. Over the past 10 years, VGSH returned 1.75%/yr vs -1.72%/yr for VGLT. Their 0.56 correlation means they have sometimes moved together and sometimes differently. Both charge a 0.03% expense ratio.
Performance
VGSH vs. VGLT - 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 VGLT's -2.90% return. Over the past 10 years, VGSH has outperformed VGLT with an annualized return of 1.75%, while VGLT has yielded a comparatively lower -1.72% 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%
VGLT
- 1D
- 0.37%
- 1M
- -3.15%
- 6M
- -2.54%
- YTD
- -2.90%
- 1Y
- -1.31%
- 3Y*
- -0.04%
- 5Y*
- -7.20%
- 10Y*
- -1.72%
- ALL TIME*
- 2.29%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $99.02M | $99.81M | $109.19M | |
| $149.43M | $165.20M | $192.79M |
VGSH vs. VGLT - 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% |
VGLT Vanguard Long-Term Treasury ETF | -2.90% | 5.35% | -6.28% | 3.27% | -29.34% | -4.98% | 17.57% | 14.30% | -1.54% | 8.64% |
Correlation
The correlation between VGSH and VGLT is 0.66, 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. | 0.66 |
Correlation (3Y) Balances recent behavior with more history. | 0.66 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.65 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.61 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | 0.56 |
The correlation between VGSH and VGLT has been stable across timeframes, ranging from 0.56 to 0.66 - a consistent structural relationship.
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Return for Risk
VGSH vs. VGLT — Risk / Return Rank
VGSH
VGLT
VGSH vs. VGLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury ETF (VGSH) and Vanguard Long-Term Treasury ETF (VGLT). 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 | VGLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.33 | ||
| Sortino ratioReturn per unit of downside risk | +3.38 | ||
| 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 | +11.97 |
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Drawdowns
VGSH vs. VGLT - Drawdown Comparison
The maximum VGSH drawdown since its inception was -5.70%, smaller than the maximum VGLT drawdown of -46.18%. Use the drawdown chart below to compare losses from any high point for VGSH and VGLT.
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Drawdown Indicators
| VGSH | VGLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.70% | -46.18% | +40.48% |
Max Drawdown (1Y)Largest decline over 1 year | -0.88% | -7.03% | +6.15% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -13.38% | +12.41% |
Max Drawdown (5Y)Largest decline over 5 years | -5.62% | -40.98% | +35.36% |
Max Drawdown (10Y)Largest decline over 10 years | -5.70% | -46.18% | +40.48% |
Current DrawdownCurrent decline from peak | 0.00% | -38.41% | +38.41% |
Average DrawdownAverage peak-to-trough decline | -0.59% | -15.27% | +14.68% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 3.22% | -2.99% |
Volatility
VGSH vs. VGLT - Volatility Comparison
The current volatility for Vanguard Short-Term Treasury ETF (VGSH) is 0.35%, while Vanguard Long-Term Treasury ETF (VGLT) has a volatility of 2.30%. This indicates that VGSH experiences smaller price fluctuations and is considered to be less risky than VGLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGSH | VGLT | 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% | 6.31% | -5.30% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.23% | 8.39% | -7.16% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.98% | 14.46% | -12.48% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.58% | 13.75% | -12.17% |
VGSH vs. VGLT - Expense Ratio Comparison
Both VGSH and VGLT 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. VGLT - Dividend Comparison
VGSH's dividend yield for the trailing twelve months is around 3.82%, less than VGLT's 4.78% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGLT Vanguard Long-Term Treasury ETF | 4.78% | 4.44% | 4.33% | 3.33% | 2.84% | 1.82% | 2.15% | 2.46% | 2.71% | 2.55% | 2.69% | 3.21% |
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 VGLT have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGLT has higher volatility (2.30%) compared to VGSH (0.35%). In terms of maximum drawdown, VGSH dropped -5.70% vs VGLT's -46.18%.
On 10-year performance, VGSH leads with 1.75% vs -1.72% for VGLT. 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, VGSH has performed better with a 1.75% return vs -1.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGSH and VGLT have the same expense ratio: 0.03% per year.
VGLT has the higher dividend yield at 4.78%, compared with 3.82% for VGSH.
VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index, while VGLT tracks Bloomberg U.S. Long Treasury Index.
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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