VGSH vs. VTES
VGSH (Vanguard Short-Term Treasury ETF) and VTES (Vanguard Short-Term Tax-Exempt Bond ETF) are both exchange-traded funds - VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index, while VTES is a Municipal Bonds fund tracking the S&P 0-7 Year National AMT-Free Municipal Bond Index. Both are passively managed. Over the past 3 years, VGSH returned 4.22%/yr vs 3.03%/yr for VTES. Their 0.55 correlation means they have sometimes moved together and sometimes differently. VGSH charges 0.03%/yr vs 0.07%/yr for VTES.
Performance
VGSH vs. VTES - 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 VTES's 0.43% 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%
VTES
- 1D
- 0.06%
- 1M
- -0.54%
- 6M
- -0.30%
- YTD
- 0.43%
- 1Y
- 1.72%
- 3Y*
- 3.03%
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 2.87%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $149.43M | $165.20M | $192.79M | |
| $20.21M | $19.12M | $17.71M |
VGSH vs. VTES - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
VGSH Vanguard Short-Term Treasury ETF | 0.85% | 5.07% | 4.00% | 4.77% |
VTES Vanguard Short-Term Tax-Exempt Bond ETF | 0.43% | 4.19% | 1.85% | 3.32% |
Correlation
The correlation between VGSH and VTES is 0.51, 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. | 0.51 |
Correlation (3Y) Balances recent behavior with more history. | 0.52 |
Correlation (All Time) Calculated using the full available price history since Mar 9, 2023 | 0.55 |
The correlation between VGSH and VTES has been stable across timeframes, ranging from 0.51 to 0.55 - a consistent structural relationship.
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Return for Risk
VGSH vs. VTES — Risk / Return Rank
VGSH
VTES
VGSH vs. VTES - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury ETF (VGSH) and Vanguard Short-Term Tax-Exempt Bond ETF (VTES). 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 | VTES | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.81 | ||
| Sortino ratioReturn per unit of downside risk | +1.39 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 1.28 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 3.01 | 1.18 | +1.84 |
| Martin ratioReturn relative to average drawdown | 11.57 | 3.12 | +8.45 |
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Drawdowns
VGSH vs. VTES - Drawdown Comparison
The maximum VGSH drawdown since its inception was -5.70%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for VGSH and VTES.
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Drawdown Indicators
| VGSH | VTES | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.70% | -2.42% | -3.28% |
Max Drawdown (1Y)Largest decline over 1 year | -0.88% | -1.47% | +0.59% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -1.59% | +0.62% |
Max Drawdown (5Y)Largest decline over 5 years | -5.62% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -5.70% | — | — |
Current DrawdownCurrent decline from peak | 0.00% | -0.84% | +0.84% |
Average DrawdownAverage peak-to-trough decline | -0.59% | -0.50% | -0.09% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 0.55% | -0.32% |
Volatility
VGSH vs. VTES - Volatility Comparison
The current volatility for Vanguard Short-Term Treasury ETF (VGSH) is 0.35%, while Vanguard Short-Term Tax-Exempt Bond ETF (VTES) has a volatility of 0.44%. This indicates that VGSH experiences smaller price fluctuations and is considered to be less risky than VTES based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGSH | VTES | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.35% | 0.44% | -0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 1.01% | 1.03% | -0.02% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.23% | 1.27% | -0.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.98% | 1.70% | +0.28% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.58% | 1.70% | -0.12% |
VGSH vs. VTES - Expense Ratio Comparison
VGSH has a 0.03% expense ratio, which is lower than VTES's 0.07% 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. VTES - Dividend Comparison
VGSH's dividend yield for the trailing twelve months is around 3.82%, more than VTES's 2.74% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
VTES Vanguard Short-Term Tax-Exempt Bond ETF | 2.74% | 2.77% | 2.99% | 2.03% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
VGSH and VTES have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTES has higher volatility (0.44%) compared to VGSH (0.35%). In terms of maximum drawdown, VGSH dropped -5.70% vs VTES's -2.42%.
On 3-year performance, VGSH leads with 4.22% vs 3.03% for VTES. On fees, VGSH is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, VGSH has performed better with a 4.22% return vs 3.03%. 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 0.07% for VTES.
VGSH has the higher dividend yield at 3.82%, compared with 2.74% for VTES.
VGSH is categorized as Government Bonds, while VTES is Municipal Bonds. VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index, while VTES tracks S&P 0-7 Year National AMT-Free Municipal Bond Index. Their fees differ too: 0.03% for VGSH and 0.07% for VTES.
VGSH currently has the higher Sharpe Ratio (2.17 vs 1.37), 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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